Customs

Screws, Bolts and Nuts Increase – Correction Notice – Comment Due

Comment is due by 05 July 2013 in respect of the corrected notice for the proposed increase in the rate of customs duty on certain screws, bolts and nuts classifiable under tariff subheadings 7318.15.39, 7318.15.43 and 7318.16.80 from the existing 10% ad valorem to the 30% ad valorem bound rate. The customs duty increase on other hexagon nuts would be carried out by creating an 8-digit tariff subheading, 7318.16.80. The application was lodged by CBC Fasteners (Pty) Ltd who offered who offered the following reasons (i) SACU manufacturers need to be protected against price undercutting from Chinese exporters exempted from the existing dumping duty on fasteners; (ii) CBC Fasteners (Pty) Ltd is unable to recover manufacturing overheads at the current low levels of production. There is an urgent need for CBC Fasteners (Pty) Ltd and other SACU manufacturers to increase the volumes required to sustain critical mass and have sustainable businesses that continue to contribute to employment whilst maintaining investment; (iii) Domestic producers are facing significant price disadvantage against imported screws, bolts and nuts from Asian countries; (iv) The dumping duties imposed by International Trade Administration Commission of South Africa (ITAC) against imports from China are a clear indication that there is a problem in the industry. Therefore, the requested duty increase of 20% ad valorem is justified; and (v) Increasing the customs duties on the bound level of 30% ad valorem will level the playing field for manufacturers.

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