Trade Policy Directive
On 21 April the Economic
Development Department
(EDD), in terms of the
International Trade
Administration Act, 2002,
issued a policy directive on
matters the International
Trade Administration
Commission of South Africa
(ITAC) shall consider in
evaluating applications for
amendment of customs duties.
The directive was issued
in order to improve the
realisation of the objective of
the Act.
1. In relation to an
application for amendment
of customs duties in terms of
section 26 (1) (c) of the Act,
but excluding amendments
with respect to anti-dumping
duties, countervailing duties
or safeguard duties, Itac
shall take into account the
following matters in deciding
what recommendation to
make. In appropriate cases,
it is preferable that Itac
should consult with the
applicant with regard to
these matters before making
its recommendation
1.1. the desirability of
the applicant making an
objectively verifiable and
binding commitment as to
what action it will take in
order to ensure the raising
of incomes, the promotion
of investment or the
promotion of employment,
if the proposed measure is
implemented; 1.2. what such
commitments, if any, the
applicant has made in that
regard; and 1.3. the likely
impact of those commitments
on incomes, investment or
employment.
2. Where the applicant
contends that the proposed
measure is desirable in
order to protect, maintain
or increase the market
share of local producers or
manufacturers, Itac shall take
account of:
2.1. the desirability of the
applicant or other persons
making an objectively
verifiable and binding
commitment as to what
action they will take in order
to ensure that the market
share of local producers
or manufacturers will be
maintained or increased
if the proposed measure is
implemented; 2.2. what such
commitments, if any, the
applicant or other persons
have made in that regard; and
2.3. the likely impact of those
commitments on the market
share of local (Southern
African Customs Union)
producers or manufacturers.
3. In each instance
Itac shall take particular
account, in making its
recommendation, of the likely
impact of the commitments
on the following:
3.1. Job creation or
job retention, including
commitments for specified
categories such as youth
employment; 3.2. Industrial
output; 3.3. Investments
in plant, equipment,
skills, and research and
development; 3.4. Economic
investment, such as
support for participation
in manufacturing and
related activities by small
businesses, black-owned or
black-managed enterprises,
and Common Customs Area
(CCA) supply chains; and 3.5.
Pricing of outputs.
4. Itac may, at its discretion,
decide not to apply one or
more of the guidelines listed
in 3 above, in whole or in
part, in respect of a particular
application.
Stainless Steel Duty
Increase
Itac on 22 April proposed an
increase in the ‘general’ rate
of customs duty on stainless
steel flat products, classifiable
under tariff subheadings
7219.11, 7219.12, 7219.13,
7219.14, 7219.21, 7219.22,
7219.23 7219.24, 7219.31,
7219.32, 7219.33, 7219.34,
7219.35, 7219.90, 7220.11,
7220.12, 7220.20 and
7220.90, from free of duty to
10% ad valorem.
The application was lodged
by Columbus Stainless (Pty),
Middelburg, and comment is
due by 20 May 2016.
DUTY CALLS
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