On 24 January 2024, the International Trade Administration Commission of South Africa (ITAC) announced the initiation of its tariff application for the increase in the ‘General’ rate of customs duty on steel shoulder couplers, classifiable under tariff subheadings 7307.11.90, 7307.19.80, and 7307.19.90 from free or 10% ad valorem to the World Trade Organization (WTO) bound rate of 15% ad valorem, on which comment is due by 21 February 2025.
The application was lodged by Rand York Castings (Pty) Ltd who reasoned that:
- The downstream steel industry has been under significant distress for an extended period, primarily due to the influx of low-priced imports from the People’s Republic of China and other Asian countries. To address this challenge, it is crucial to increase the customs duty on the relevant tariff subheadings to the WTO bound rate of 15% ad valorem. Such an adjustment would play a vital role in enhancing the domestic industry’s price competitiveness against the relentless pressure from lower-priced imports.
- This measure would not only help safeguard the current employment levels in the industry but also create an environment conducive to job growth and encourage investment in modernising plants and equipment. The urgency of this intervention is underscored by the loss already experienced in the grooved coupling sector within the Southern African Customs Union (SACU) region, where import competition has led to the complete collapse of domestic manufacturing.
The domestic industry now faces a similar threat in the shouldered coupling sector, as import volumes remain at unsustainable levels. Without immediate action to curb these imports, the domestic manufacturing industry risks the same fate.
