South African importers face immediate higher duties on a wide range of steel and downstream metal products, while uncertainty remains over rebate permits for shipments already on the water.
The International Trade Administration Commission has finalised its review of South Africa’s steel import duty structure, with Sars publishing the implementation gazette on May 15. The changes introduce higher tariffs on several steel categories, alongside rebates for certain products that the local industry cannot manufacture and supply.
However, to qualify for the rebate, importers will have to apply to Itac for permits, and with guidelines not yet published, there is uncertainty regarding shipments that are already in transit.
A note published by XA Global Trade Advisors highlights the changes to tariffs, which include the new general rates of duty of 10% on a wide range of flat-rolled, electrical and alloy steel products and 15% on welded and seamless tubes and pipes, fittings, tanks and drums, wire ropes, fencing, chain, screws, staples and other downstream articles.
Itac has imposed a 20% tariff on hand tools, saws, wrenches, hammers, pliers, screwdrivers, interchangeable tooling and household knives, and a 30% duty on selected fittings, washers and steel baths.
The adjusted duties are effective immediately.
The notice allowed a full rebate of customs duties on specified imported steel products, including semi-finished billets, aluminium-zinc coated coil, H-sections, wire rod, rails and as seamless and galvanised tubes, provided the products were not available locally, XA Global Trace Advisors noted.
Some of the rebate provisions are limited to defined end-uses and include hot plate stoves, mining core trays, domestic fridges and freezers, insulated panels, steel garage doors, railway turnouts, port infrastructure, water infrastructure, fire systems and pipeline assembly.
“It should be noted that the rebates are subject to permits issued by Itac. At this stage, Itac has not yet published the rebate permit guidelines, which creates uncertainty for importers with shipments already on the water,” XA Global Trace Advisors noted.
“We won’t know what the conditions are for access to the rebates until these guidelines are published.”
Before the new tariffs, many products, including flat-rolled steel, bars, rods, wires, angles, sections and various inputs, entered the country duty free, while others attracted duties ranging from 10% to 15%.
