On 28 March 2025, the International Trade Administration Commission of South Africa (ITAC) called comment by 16 April 2025 on its review of the tariff structure and investigation into the possible introduction of an import surveillance system for steel products classifiable under Chapters 72, 73, 82, and 83.
ITAC’s reasons for the Review are:
- Considering the worldwide steel production overcapacity, increased trade protectionist measures implemented by some countries, and associated trade diversions occurring globally, South Africa’s steel value chains are facing serious sustainability challenges, which are negatively impacting the country’s socioeconomic objectives;
- Persistent local conditions of slow economic growth, depressed demand, and energy and freight logistics challenges further exacerbate this problem. While a number of initiatives are being implemented through the Steel and Metal Fabrication Masterplan, additional trade policy instruments may be necessary to ensure the facilitation of our industrialisation objectives and socioeconomic goals, which are supportive of our domestic steel production capabilities and jobs; and
- In addition, South Africa’s local downstream industry possesses capabilities to manufacture and be competitive in a broad array of products covered within Chapters 72,73,82 and 83. However, the South African industry faces numerous challenges, including an influx of low-priced, and often sub-standard, imports, negatively impacting the country’s socioeconomic goals.
Interested parties are invited to submit comments on the following:
- The possible increase in the rate of customs duty to the respective World Trade Organization (WTO) bound rates on the products listed in Table A;
- The extent to which the challenges faced in relation to an influx of low-priced imports arising from global structural overcapacity constitute an ‘emergency’ situation, necessitating emergency action, including as envisaged in Article XIX of the General Agreement on Trade and Tariffs (GATT), the suspension in whole or part, or withdrawal or modification of any tariff concession, to the extent and for such a time as may be necessary to prevent or remedy further harm.
- The desirability of raw material input supports measures to improve the cost competitiveness of domestic steel producers in overcoming price disadvantages arising from global structural overcapacity and incomparable scale economies found in countries of origin for competing products. Such measures would include measures that reduce input prices on scrap, iron-ore, coking coal and any other feedstock material used in the production of steel.
- The potential discontinuation of the following rebate provisions due to their unintended negative consequences in the domestic manufacturing industry; Rebate Item 460.15/7210.61/01.06; Rebate Item 460.15/7210.70/01.06; and Rebate Item 460.15/7225.99/01.06
- The possible creation of rebate provisions for the importation of targeted input products used in manufacturing activities, classifiable under Chapters 72, 73, 82, and 83 of the Customs and Excise Act;
- Consideration of ‘alternative’ measures to ad valorem customs duties, including but not limited to tariff rate quotas, minimum import or reference pricing, and specific or formula duties inter alia.
- The possible introduction under import controls of all products listed in Table B. Import control would involve the requirement for the issue of a permit (for environmental, safety and other reasons) by ITAC prior to importation of specific categories of products. The possible introduction of an import surveillance system to assist in addressing, amongst other things, circumvention of import duties, customs fraud, misdeclaration, under-invoicing and other unlawful activities; and
- Proposals on the identification of additional high-risk steel products to be prioritised in the development of compulsory specifications and standards in collaboration with the National Regulator for Compulsory Specifications (NRCS).