On 18 September 2015 Itac announced the proposed increase in the ‘General’ rate of customs duty on steel reinforcing bar classifiable under tariff subheadings 7214.20, 7228.30, and 7228.60, from free of duty to 10% ad valorem.
The application was lodged by South African Iron and Steel Institute (SAISI) who reasoned that (i) The main aim of the application is to improve the local manufacturers’ competitive position against low-priced imports, especially imports originating from East Asian countries; (ii) Tariff support would curb further job losses as large retrenchments have already taken place in the industry; (iii) Tariff support would encourage the local manufactures to continue investing in the local industry and create further employment; (iv) It would also assist upstream and downstream service and product providers and enable further investment into the industry value chain; and (v) The total value chain cannot exist without a primary steel producer. It is essential for South Africa to have the benefits of a fully integrated value chain. Without a primary steel producer the iron ore will be exported and the downstream industry will be exposed to international price fluctuations and supply distortions.
Comment is due by 02 October 2015.