On 22 September the International Trade Administration Commission of South Africa (Itac) announced the proposed creation of two temporary rebate items for flat-rolled iron or non-alloy steel products. Comment is due by 20 October.
Rebate item 460/7208.25/xx “Flat-rolled products of iron or non-alloy steel, in coils, not further worked than hot-rolled, pickled, of a thickness of 4.75 mm or more and a width exceeding 1,925 mm, classifiable in tariff subheading 7208.25, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available on the SACU market.”
Rebate item 460/7208.26/xx “Flat rolled products of iron or non-alloy steel, in coils, not further worked than hot-rolled, pickled of a thickness of 3mm or more but less than 4.75 mm and a width exceeding 1,925 mm, classifiable in tariff subheading 7208.26, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available on the SACU market.”
The application was lodged by Aveng Trident Steel, a division of Aveng Africa (Pty) Ltd who reasoned that (i) There is no local manufacturer of the subject products in the Southern African Customs Union (SACU) region. (ii) In Itac Report 524, it was resolved that the steel industry and/or its sub-sectors should work with Itac in identifying policy space for tariff support for downstream steel industry. This includes the creation of additional rebate facilities where the raw material used or imported is not manufactured in South Africa. [Should be SACU.] (iii) There is no alternative for users of the products concerned, other than to import and therefore levying of duties will have an unnecessary cost raising effect for downstream users.