The International Trade Administration Commission of South Africa (Itac) on 23 November published an application for the proposed increase in the ‘general’ rate of customs duty on certain tubes, pipes and hollow profiles, seamless of iron or steel, classifiable in tariff subheadings 7304.19 and 7304.23 7304.29.
The application was lodged by SAISI, on behalf of Arcelormittal South Africa Ltd who reasoned that:
(a) The tube and pipe industry in the Southern African Customs Union (SACU) has been under distress for some time, largely due to low-priced imports originating from Asian countries;
(b) The impact of the decrease in import prices is forcing ArcelorMittal South Africa Ltd to sell the product at a price that is below the manufacturing cost of the product; and
(c) The current decreasing price levels at which seamless pipes are being imported into the SACU market, coupled with an increase in imports volumes, have put the viability of the SACU industry at risk. If the current trend continues, further production and job losses will be inevitable