On 22 November 2013 Itac published a notice proposing the amendment of the customs duty structure for certain new pneumatic tyres of rubber, tariff subheading 4011.10 (30% or 2884 cents/kg less 70%), 4011.20.15 (25% or 2780 cents/kg less 75%), 4011.20.22 (25% or 3114 cents/kg less 75%), 4011.20.24 (25% or 2774 cents/kg less 75%), and 4011.20.26 (25% or 3083 cents/kg less 75%). The application was lodged by Apollo South Africa (Pty) Ltd who reasoned that there had been a massive influx of low-priced and under-invoiced imported tyres mainly from the People’s Republic of China. Since 2009, Chinese tyre exports have continued to climb by 35% and 40% in 2010 and 2011, respectively. China possesses a complete upstream and downstream of the tyre industry value chain accompanied with relatively cheap energy and low labour costs which makes South African Tyre Manufacturers unable to compete. During the period 2004 to 2012, Sacu production volume for passenger and commercial tyres declined from 12.4 to 10.1 million units. The intention of the introduction of a reference price into the duty structure is to counter under-invoicing. The reference price is based on material content and direct labour. Comment is due by 20 December 2013.
