Itac has published an application for the reduction in the rate of customs duty on ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94 (linear low-density polyethylene) with retrospective effect to 6 December 2017.
The application was lodged by West African Group, a division of West African International (Pty) Ltd, who reasoned, among others, that (i) Imported products currently attract a customs duty, whereas previously the same product was imported duty free. (ii) The local producer of these products only has the capacity to supply 47% of the market, leaving a large portion of the market reliant on imported material. A change in the rate of customs duty currently payable by the importers will have a severe impact on South Africa’s trade deficit and balance of payments.
Comment is due on 30 March.