The International Trade Administration Commission (Itac) has proposed a series of tariff reforms aimed at bolstering South Africa's struggling steel industry amid global overcapacity and low-priced imports.
The recommendations, outlined in a Government Gazette notice published on Tuesday, stem from a comprehensive review initiated by a ministerial directive in June 2024.
According to an Itac document outlining the steel tariff review, the main objective is to address multiple challenges facing the sector.
Itac said the review had been necessitated due to worldwide steel production overcapacity, increased trade protectionist measures implemented by some countries, and associated trade diversions occurring globally.
“As a result of this, South Africa’s steel value chains are facing serious sustainability challenges, which are impacting negatively on socio-economic objectives,” Itac said in the document.
Itac added that local conditions including "slow economic growth, depressed demand, energy and freight logistics challenges” had exacerbated the situation.
The review found that the country showed greater competitiveness potential to produce several value-added steel products, including mounting structures, high-pressure containers, stranded wire, tanks, anchors, rock drilling tools, transmission equipment, tools, springs, pipes and fittings.
However, downstream industries to manufacture certain steel products faced an influx of low-priced imports.
The initial findings of the review published in the Government Gazette notice include several key determinations, including the following preliminary determinations: that the rate of customs duty on a number of identified products be increased to their respective bound rates, that additional rebate provisions be created for certain grades of steel products not manufactured domestically, and that certain identified products be subjected to import control in line with section 6 of the International Trade Administration Act of 2002.
Other recommendations covered standards integration and duty-free inputs as well as the geopolitical context facing the sector, including:
• A preliminary determination that when standards are developed for steel products identified for import control these should be incorporated into the import permit control system as additional conditions for the issuing of permits.
• A preliminary determination that certain input products used in steel-making, particularly stainless steel, be free of duty.
• A preliminary determination that the ongoing geo-political landscape does constitute an unprecedented emergency, necessitating urgent action.
• The formation of a committee comprising industry stakeholders and part-time commissioners to advise on steel-related matters.
ITAC said the measures were part of broader interventions under the Steel and Metal Fabrication Masterplan. However, its review outline document noted that additional efforts were needed to stimulate domestic demand, provide affordable energy and improve logistics.
It said the review had drawn mixed reactions, observing that the industry generally supported the reform given the geopolitical climate, but some stakeholders cautioned against duty increases where domestic capacity was lacking.
"Industry has, however, cautioned Itac not to increase duties where domestic capacity does not exist. Some of the role players cited that the wide scope of the review has far-reaching implications, going beyond ordinary tariff amendments as envisaged in the Amended Tariff Investigations Regulations,” Itac said.
However, current steel duties are deemed inadequate in some cases.
“SA has some of the lowest WTO bound rates on steel-related products relative to its developing peers. This means that even when the duties are imposed to the bound rates, such protection is not adequate in certain instances," Itac said.
It said this was evidenced by rising applications for safeguards and anti-dumping duties.
Itac said historical import control measures used for health, environmental, security, and standards compliance would be extended to certain steel products.
Meanwhile, it said it was reviewing the Price Preference System on scrap metal, but confirmed there was no conflict with the tariff review. Reports on potential discount amendments will be published upon determination.
The deadline for public comments on the proposed amendments is stipulated as being two weeks from the date of publication of 20 August 2025. Comments can be sent to Rethabile Molala/Pfarelo Phaswana/Nonqubeko Sikhakhana/Princess Matsepane. Telephone: 012 394 5162/3628/3835/3699 or email rmolala@itac.org.za/ pphaswana@itac.org.za/nsikhakhana@itac.org.za/ pmatsepane@itac.org.za.
