On 05 September 2014 the South African Revenue Service (SARS) informed of the reduction in the “General” rate of customs duty on graphite electrodes of a kind used in furnaces, classifiable in tariff subheading 8545.11, from 10% ad valorem to free (0%). Remember that in Customs, 0% is considered to be a rate of duty.
The application that resulted in the reduction was lodged by, and published by the International Trade Administration Commission of South Africa (ITAC) on 20 March 2014. ITAC reasoned that since the existent Southern African Customs Union (SACU) manufacturer is ceasing manufacturing operations the duty will no longer serve the purpose of supporting domestic manufacturing, employment and investment in the relevant industry, and the existence of a duty could place an undue cost burden on the downstream industry.
This investigation follows an ITAC Report, dated 13 March 2014, informing of the termination of the investigation into the alleged dumping of graphite electrodes for use in furnaces, originating in or imported from the People's Republic of China. This investigation was initiated on 22 November 2013 after the receipt of an application by GrafTech South Africa (Pty) Ltd, the only graphite electrodes producer in the SACU. On 06 February 2014 ITAC received a letter from GrafTech that it had decided to cease its operations and requested the anti-dumping application to be terminated.