Customs

Temporary Structural Steel Rebate - Comment due

Itac on 28 April announced the creation of temporary rebate facilities (rebate items) on structural steel in the form of U, I, H and L sections, of other alloy steel, not further worked than hot-rolled, hot- drawn or extruded, of a height of 80mm or more classifiable in tariff subheadings 7228.70 and 7216.40.

Rebate Item 460 7216.40 – “L sections, not further worked than hot-rolled, hot drawn or extruded, of a height exceeding 150 mm, classifiable in tariff subheading 7216.40, 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 extent of the rebate is full duty.

Rebate Item 460 7228.70 – “U, I or H sections, of other alloy steel, not further worked than hot-rolled, hot-drawn or extruded, of a height of 80 mm or more, classifiable in tariff subheading 7228.70, 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 extent of the rebate is full duty.

460 7228.70 – ““L” sections, of other alloy steel, not further worked than hot-rolled, hot-drawn or extruded, of a height exceeding 150 mm, classifiable in tariff subheading 7228.70, 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 extent of the rebate is full duty.

The application was lodged by the South African Iron and Steel Institute (SAISI) supported by Aveng Trident Steel, a division of Aveng Africa (Pty) Ltd who reasoned that: (i) There is no local manufacturer of the subject product in the SACU Region. EVRAZ Highveld Steel Vanadium (Pty) Ltd (EVRAZ) was the sole manufacturer of the subject products and has temporarily ceased production and is currently under business rescue; (ii) In its Report No 517, the Commission committed to consider applications for tariff relief for products previously manufactured by EVRAZ until such time that manufacturing has resumed; (iii) There is no alternative for users of the products concerned, other than to import and therefore the current duties will have an unnecessary cost raising effect for the downstream industry; and (iv) Should the creation of a rebate facility be supported, downstream industry will be well positioned to compete against similar imported products, thereby providing the added benefit of assisting the downstream industry.

Comment is due on 26 May 2017.

Aveng Trident Steel

According to its website - http://www.avengtridentsteel.co.za/ - Aveng Trident Steel Aveng Steel consists of three business units, namely, Aveng Trident Steel; Aveng Steeledale and Aveng Steel Fabrication.

Aveng Steel capabilities range from the supply of steels, automotive materials, special steel and reinforcing bars, as well as pipe and tube manufacturing and steel fabrication. The Aveng Steel Fabrication plant has supplied plate work and structural steel fabrication to mines and the power industry.

South African Iron and Steel Institute (SAISI)

https://www.specifile.co.za/company/10711-saisi-south-african-iron-and-steel-institute/

SAISI has represented the collective interests of the South African primary steel industry since 1962.

Nature of the organisation: SAISI is a non-profit, pro-competition and non-governmental representative organisation serving the collective interests of the primary steel industry in South Africa. SAISI’s membership includes all five primary carbon steel producers and South Africa’s only primary stainless steel producer. The SAISI members are ArcelorMittal South Africa Ltd with plants in Vanderbijlpark, Vereeniging, Newcastle and Saldanha Bay. Cape Gate (Pty) Ltd in Vanderbijlpark. Cisco (Cape Town Iron and Steel Works (Pty) Ltd) in Cape Town. Columbus Stainless (Pty) Ltd in Middelburg, Mpumalanga. Highveld Steel and Vanadium Corporation Ltd in Witbank. Scaw Metals Group in Germiston.

SAISI does not presume to represent the interests of the downstream steel industry which is organised into autonomous sectors/associations/clusters. SAISI does however constructively engage with representatives of the downstream industry and Government through the deliberations of SAISI’s Downstream Development Committee in ongoing efforts to promote the local beneficiation of South African produced primary steel products.

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