Steel duty reprieve could extend to other industries

Could also remove certain anti-dumping duties ALAN PEAT
EFFECTIVE SINCE May 30, iron and steel products which the SA Revenue Service (Sars) lists under Chapter 72 of the harmonised tariff code are not liable for import duty – joining those which already enter the country duty-free under the SA/European Union (EU) free trade agreement. According to Duane Newman, who heads up the indirect tax division of trade and customs consultants, Deloitte, the reduction in the duty follows an investigation by the International Trade Administration Commission (ITAC) into the general custom duties of Chapter 72. “Its recommendation,” he said, “is that these duties are no longer justified in light of the pricing of primary steel and the effect this has on downstream industries. “ITAC found that the primary steel industry was performing well economically, is globally competitive, export-oriented and enjoys the bulk of the Southern African Customs Union (SACU) market share. “The 5% duty is factored into the steel industry’s import parity pricing policy - and SACU’s geographical isolation provides further protection for the local industry.” The change in duty category will also have other side effects The reduction of the duties rendered a number of Schedule 3, 4 and 5 rebate provisions for Chapter 72 superfluous, Newman added, and these were therefore also withdrawn from May 30. It will also effectively remove the current anti-dumping duties on cold, flat-rolled steel, of a width of 600-millimetres or more, and imported from the Russian Federation. “We believe that these studies will be extended to other commodities, following the recent parliamentary address by the minister of trade and industry,” said Newman. “Other producers of commodities should take note of the contents of the ITAC’s report on Chapter 72 and consider how the conclusions made could be applied to their industry.”