The proposed Rebate Item reads:
• Flat-rolled products of other non-alloy steel, of a width of 600mm or more, in coils, not further worked than hot-rolled, pickled, of a thickness of 1.80mm or more but less than 3mm, classifiable in tariff subheading 7208.27, for use in the manufacture of products classifiable in tariff subheadings 7210.49, 7210.61, 7210.70 and 7210.90, by reducing the thickness to less than 1.8mm through cold rolling (cold-reducing) of the imported products before coating them, in such quantities, at such times and subject to such quantities as ITAC may allow by specific permit, provided the goods are not available in the Southern African Customs Union (SACU) market;
• Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, in coils, not further worked than hot-rolled, of a thickness of 1.80mm or more but less than 3mm, classifiable in tariff subheading 7208.39, for use in the manufacture of products classifiable in tariff subheadings 7209.16, 7209.17 and 7209.18, by descaling and reducing the thickness to less than 1.8mm through cold rolling (cold-reducing) of the imported products and thereafter putting it through an annealing and tempering process transforming the product from a yield strength of 500 Mpa to a yield strength not more than 280 Mpa, in such quantities, at such times and subject to such quantities as ITAC may allow by specific permit, provided the goods are not available in the SACU market;
• Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, in coils, not further worked than hot-rolled, of a thickness of 1.80mm or more but less than 3mm, classifiable in tariff subheading 7208.39, for use in the manufacture of products classifiable in tariff subheadings 7210.49, 7210.61, 7210.70 and 7210.90, by descaling and reducing the thickness to less than 1.8mm through cold rolling (cold-reducing) of the imported products before coating them, in such quantities, at such times and subject to such quantities as ITAC may allow by specific permit, provided the goods are not available in the SACU market; and
• Flat-rolled products of other alloy steel, not further worked that hot-rolled, in coils, of a thickness of 1.80mm or more but less than 3mm, classifiable in tariff subheading 7225.30, for use in the manufacture of products classifiable in tariff subheading 7225.92, by descaling and reducing the thickness to less than 1.8mm through cold rolling (cold reducing) of the imported products before coating them, in such quantities, at such times and subject to such quantities as ITAC may allow by specific permit, provided the goods are not available in the SACU market.
The application was lodged by Duferco Steel Processing (Pty) Ltd who reasoned that:
• The closure of ArcelorMittal South Africa (AMSA) Saldanha Steel Works, which came into effect during the first quarter of 2020, presents a major threat to Duferco’s future operations and economic stability. The only alternative source of supply is AMSA Van der Bijl Park, situated in Gauteng;
• When AMSA Van der Bijl Park is not able to fulfil the supply needs of Duferco, importing is the only alternative available; and
• In the event of Duferco having to import the raw material, the ordinary customs duties and safeguard duties will render such an alternative economically unviable, which will impact negatively on the applicant’s efficiency and its competitiveness in the export market, resulting in job losses.
The Government Gazette notice is available at:
https://www.gov.za/sites/default/files/gcis_document/202010/43840gen608.pdf
Story by: Riaan de Lange