On 14 December 2018, the International Trade Administration Commission of South Africa (Itac) advised of the proposed creation of rebate items,
(i) “Bars and rods, of aluminium‑copper‑magnesium‑zinc alloys, of a maximum cross‑sectional dimension of 25 mm or more but not exceeding 52 mm and of a length not exceeding 3221 mm, having a copper content of 1.2% or more but not exceeding 2% by weight, a magnesium content of 2.1% or more but not exceeding 2.9% by weight and a zinc content of 5.1% but not exceeding 6.1% by mass, with a yield strength of 460 MPa or more but not exceeding 480 MPa, classifiable in tariff subheading 7604.29.15, at such times, in such quantities and subject to such conditions as ITAC may allow by specific permit, provided the bars and rods are not available in the Southern African Customs Union (SACU market)”; and
(ii) “Profiles of aluminium‑copper‑magnesium‑zinc alloys, of a maximum cross‑sectional dimension of 60 mm or more but not exceeding 85 mm, having a copper content of 1.2% or more but not exceeding 2% by weight, a magnesium content of 2.1% or more but not exceeding 2.9% by weight and a zinc content of 5.1% but not exceeding 6.1% by mass, with a yield strength of 460 MPa or more but not exceeding 480 MPa, classifiable in tariff subheading 7604.29.65,at such times, in such quantities and subject to such conditions as ITAC may allow by specific permit, provided the profiles are not available in the SACU market”.
Comment is due by 11 January 2019.
The application was lodged by Lektratek (Pty) Ltd who reasoned that:
(i) There are currently no known manufacturers of the subject products or close substitutes in the Southern African Customs Union (SACU) region. As such, the applicable customs duty on the subject products has an unnecessary cost-raising effect on the production of stabilisation fins and mortar bombs; and
(ii) The creation of a rebate provision will contribute to a reduction in the cost of production and improvement in the global competitive position of the domestic industry manufacturing stabilisation fins and mortar bombs.
