Preliminary Investigation Cautionary™ The International Trade Administration Commission of South Africa’s (Itac) Tariff Investigations Regulations in Sub-Part III provides for a “Preliminary Investigation Phase”, in which in Section 15 Itac evaluates whether to accept or reject a Customs tariff application. It is understood that during this phase “interested parties” are contacted soliciting their comments on the proposed initiation of the Customs tariff investigation. One would expect that the intention is not for this to be publicly known, particularly prior to the “Publication Notice” of an investigation, through a Government Gazette notice. [In a Trade Remedy Investigation the applicant’s application is subject only to Itac verification prior to Government Gazette notice.] On 24 October 2014 a newspaper headline, “Plea for levy against imports of f lat steel”, noted ArcelorMittal South Africa Limited (AMSA), Safal Steel (Pty) Ltd and the Southern African Coil Coaters’ Association (SACCA) application for an increase in the “General” rate of customs duty from free (0%) to 10% ad valorem, which has not been gazetted. The tariff subheadings are understood to be 7210.41; 7210.49, 7212.30, 7210.61, 7210.90, 7225.99.90, 7210.70 and 7212.40. If ever you are invited to comment during the “Preliminary Investigation Phase”, kindly let us know. Trade Remedy Cautionary™ Quoted in the newspaper article of 24 October 2014, the SACCA chairman indicated that domestic producers were also considering an antidumping investigation against the People’s Republic of China. Historically, antidumping duties were imposed in 2004 on tariff subheadings 7210.70 and 7212.40 for imports from Australia, then in 2006 circumvention anti-dumping duties were imposed for imports from Malaysia, through Australia, and subsequently the anti-dumping duties were terminated in 2009. Forewarned is forearmed In recent weeks we have informed you of our Customs Tariff Cautionary™, Trade Remedy Cautionary™, Customs Tariff Check™ and Import and Export Monitor™. If we have not heard from you, do not forget or neglect. Duty Calls’ Watch List Comment on the “Third Batch” of draft Rules to the Customs Control Act is due by 14 November 2014. The publication of the 2015 Customs tariff amendments is expected by 29 November 2014. The World Trade Report 2014 On 20 October 2014 the World Trade Organisation (WTO) released its World Trade Report 2014. In it the WTO spotlighted its assistance to developing countries by (i) enabling countries to take binding commitments; (ii) applying rules which offer a more equitable playing field and also a predictable global trade environment, (iii) providing flexibilities that better allow developing countries to undertake such commitments; (iv) facilitating technical assistance to build trading capacity within those economies; (v) providing a way to settle disputes in a fair, open manner, and (vi) providing a forum to negotiate further commitments and updated rules.
