On 10 May 2013 the South African Revenue Service (Sars) published an increase in the “General” rate of customs duty on polytetrafluoroethylene tape, classifiable under 3920.99.25, from 10% ad valorem to 20% ad valorem. The European Union (EU), European Free Trade Association (Efta) and the Southern African Development Community (SADC) rate of customs duty remain unchanged. The tariff application that resulted in the tariff amendment was published by the International Trade Administration Commission of South Africa (Itac) on 21 December 2012 and comment was due on 25 January 2013. It took 140 days (slightly less than 5 months) to complete. The application was lodged by RIC Manufacturing CC who provided numerous reasons for the application, amongst others that the World Trade Organisation (WTO) bound rate of 20% ad valorem is required to curb the flood of cheap imports into the Southern African Customs Union (Sacu), to ensure that the Sacu retains this industry and to afford the relevant industry a chance to grow. An increase in the manufactured product is now expected to result, since the applicant did indicate that it “needs to increase its selling price to recover production costs”. At question, whether the correct trade instrument (measure) was used as the applicant did indicate that the application was “to curb the flood of cheap imports”, normally considered to be indicative of dumping.
