On 19 February 2016 Itac announced a proposed increase in the rates of ordinary customs duty on other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials: Of polymers of propylene: classifiable under tariff subheadings 3920.20.25, 3920.20.35 from 10% ad valorem to 20% ad valorem and tariff subheading 3920.20.45 from free of duty to 20% ad valorem.
The application was lodged by Amcor Flexible (Pty) Ltd who reasoned, amongst other things, that the last few years had seen them consistently losing market share to imported products. According to the applicant it is clear that unless an effort is made to obtain protection on these products, the ratio of imported versus locally manufactured products will further increase, thereby placing jobs at risk, despite investment in innovative and new technological advancement.
If the company’s name rings a bell you may recall that on 25 March 2015 Nampak announced the sale of its flexible division to Australian multinational, Amcor, for R250 million (US$22 million). According to Nampak, at the time of the sale, its flexible division formed part of its ‘strategic portfolio optimisation’ to unlock cash and to reinvest it into ‘high-growth opportunities’ on the rest of the African continent. Nampak Flexibles had extrusion, lamination and conversion capabilities across three plants in Cape Town (Western Cape), Port Elizabeth (Eastern Cape) and Pinetown (KwaZulu-Natal).
Comment is due by 18 March 2016.