ITAC Turns 10 or it is 92? The existence of this column is in large part attributable to the International Trade Administration Commission of South Africa (Itac). On 01 June 2003 Itac will celebrate its 10th year of existence. It was originally established as an agency of the Department of Trade and Industry (the dti) through an Act of Parliament, replacing the Board on Tariffs and Trade (BTT) established on 24 September 1986, and its predecessor the Board of Trade and Industries (BTI) established on 08 July 1921. It thus has a collective history of nearly 100 years. Itac’s vision is to be an institution of excellence in international trade administration, enhancing economic growth and development. Its mission is to create an enabling environment for fair trade through the efficient and effective administration of its trade instruments and by providing technical advice to the Economic Development Department (EDD) and the dti. The aim of Itac, as stated in its Act, is to foster economic growth and development in order to raise incomes and promote investment and employment in South Africa and the Southern African Customs Union (Sacu) by establishing an efficient and effective system for the administration of international trade subject to its Act and the Sacu agreement. In terms of this agreement, Itac’s current Sacu role is to be replaced once a Sacu Tariff Book has been established. To date however none of the other Sacu members have established their own Itac equivalents, nor has Sacu established a Tariff Board. There is also no indication of when this will be done. Itac has three core functions, namely to conduct tariff investigations, to conduct trade remedies investigations, and to administer import and export control. (Of the approximately 6 650 South African tariff lines, 276 are subject to import control and 177 subject to export control.) What has Itac done during its existence? A quick review of the Itac website (undertaken on 10 May 2013) reveals that the last report that Itac published was Report No 424. However only 400 reports are available for download. An analysis of the 400 reports indicates that 163 (40.75%) were in respect of anti-dumping investigations, 96 (24.00%) in respect of the rebate of the rate of customs duty, 74 (18.50%) in respect of the reduction in the rate of customs duty, and 35 (8.75%) in respect of the increase in the rate of customs duty. The latter Reports (since Report 400), indicate a recent tendency for applications for the increase in the rate of customs duty, with six of the reports for this, while five were for anti-dumping, four for rebate of the rate of customs duty, two for the review of the rate of customs duty, and one for a reduction in the rate of customs duty. The increase in the rate of customs duty should be considered in context, as Itac explains that it is now placing more emphasis on the principle of reciprocity when granting tariff support to industries, varying from one sector to another. According to Itac this means that tariff amendments will be conditional on a commitment by beneficiaries on how they will perform against government’s set policy objectives, in particular employment and investment. Itac has advised that tariff increases will also be tied to a specific period of time after which tariffs may be reviewed. Happy 10th birthday Itac, or rather happy 91st (on 08 July 2013 your 92nd).
