On 20 April Itac published an amendment to its 16 February tariff application for an increase in the rate of customs duty on phosphoric and polyphosphoric acids, classifiable under tariff subheading 2809.20, from free of customs duty to 10% ad valorem, by way of creating an additional 8-digit tariff subheading.
The amendment was required due to the South African Revenue Service (SARS) amendment of the tariff structure pertaining to tariff subheading 2809.20 through the introduction of two new 8-digit subheadings, 2809.20.10 and 2809.20.90, with retrospective effect from 01 January 2018.
The revised tariff application for tariff subheading 2809.20.10 is for an increase in the rate of customs duty on diphosphorus pentaoxide; phosphoric acid; polyphosphoric acids, whether or not chemically defined: of a phosphorous content of 78 per cent or more from free of customs duty to 10% ad valorem.
The application was lodged by Chemical Initiatives (Pty) Ltd, a Subsidiary of AECI Limited, who reasoned, amongst other that, (i) It had come increasingly under pressure from imports due to increasing raw material costs as a result of the 20% export duty imposed by the People’s Republic of China on yellow phosphorus. (ii) The customs duty is necessary to make them price more competitive against imports. (iii) Without protection Southern African Customs Union (Sacu) manufacturers and production will be lost to imports costing the Sacu economy jobs and investments. (iv) The customs duty will assist in cutting back on imports, whilst Chemical Initiatives already has existing capacity to supply the Sacu market.
Comment is due by 04 May.
