On 22 August 2014 the South African Revenue Service (Sars) announced an increase in the “General” rate of customs duty on wire of iron or non-alloy steel, plated or clad with other base metals, classifiable under tariff subheading 7217.30, from free of customs duty to 10% ad valorem.
Itac initiated the application on 17 April 2014 following the application received from Natstan Wire (Pty) Ltd, Uitenhage, who reasoned that since the import (customs) duties on wire products had been removed, the South African Customs Union (SACU) had lost substantial business due to the low landed price of competing imported beadwire products. Though the Government Gazette did not specific a period for comment, this was anticipated to be due by 15 May 2014.
The application took 130 days or just more than four months to complete.
If you have an interest in this product you may want to take account of the application published on 18 July 2014 for the increase in the “General” rate of customs duty on wire of iron or non-alloy steel: Plated or coated with zinc, classifiable under tariff subheading 7217.20, from free of duty to 10% ad valorem." "Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, of a kind used for fencing, of iron or steel”, classifiable under tariff subheading 7313.00, from 5% ad valorem to 15% ad valorem. "Other grill, netting and fencing, welded at the intersection: Plated or coated with zinc”, classifiable under tariff subheading 7314.31, from 5% ad valorem to 15% ad valorem. "Other cloth, grill, netting and fencing: Plated or coated with zinc”, classifiable under tariff subheading 7314.41, from 5% ad valorem to 15% ad valorem.
The application was lodged by Hendok (Pty) Ltd, Redhill, who reasoned that Labour, electricity and the domestic price of steel had increased over the last few years, resulting in increased domestic ex-factory cost. This has left the SACU industry vulnerable to imported products being sold at or below the domestic manufactured costs.
Comment on this investigation was due by 15 August 2014.