On 28 April the International Trade Administration Commission of South Africa (Itac) announced the proposed reduction in the ‘general’ rate of customs duty on thermal transfer printing ribbons in cartridges, classifiable in tariff subheading 9612.10, from 15% ad valorem to free of customs duty, through the creation of a separate 8-digit tariff subheading.
The application was lodged by Canon SA (Pty) Ltd who reasoned that (i) There is no local manufacturer of ribbons. As a result, the customs duty currently applicable on the ribbons has a cost-raising effect on the downstream industry; (ii) The cost of setting up an exclusive ribbons manufacturing plant in South Africa is very high and it is unlikely that such investment will be made locally in the near future; and (iii) The reduction of customs duty on ribbons will significantly promote South Africa’s reliance on technology and enable it to become a competitor in the global market in other fields of trade, industry and technology.
Comment is due by 26 May.
