On 26 February 2026, the International Trade Administration Commission (ITAC) announced the initiation of an investigation into the extension of safeguard measures on imports of threaded fasteners of iron or steel bolt ends and screw studs, screw studding and other hexagon nuts (excluding those of stainless steel and those identifiable for aircraft), classifiable in tariff subheadings 7318.15.41; 7318.15.42; and 7318.16.30, on which comment is due by 27 March 2026. [You will recall that safeguard measures are imposed against all countries.]
The application was lodged by the South African Fasteners Manufacturers’ Association (SAFMA), a representative organisation for the Southern African Customs Union (SACU) industry, on behalf of its members. SAFMA members collectively represent an industry standing of more than 70% of the domestic industry by production volumes.
Allegation of the likely recurrence of serious injury
The period of investigation for data evaluation for the purposes of determining the allegation of serious injury is 01 May 2022 to 30 April 2025, plus estimates for 01 May 2026 to 30 April 2027 and 01 May 2027 to 30 April 2028, should the safeguard measures be removed.
The injury analysis relates to information submitted by CBC Fasteners (Pty) Ltd, Impala Bolt and Nut, and T&l Chalmers Engineering, the three largest members of SAFMA for the subject products, representing a major share of more than 50% of the domestic industry by production volumes. The applicant alleged and submitted prima facie information indicating that the industry is adjusting while the safeguard measure is still in place until 23 July 2026, however, should the safeguard measure be removed, there is likelihood that the serious injury experienced by the industry during the original safeguard investigation (2015-2018) would recur, in the form of a decline in sales volumes, productivity, output, market share, employment and utilisation of capacity, and negative profits.
On this basis, the Commission found that prima facie evidence was submitted to indicate that the expiry of the safeguard measure would likely lead to the recurrence of serious injury.
Allegation that the industry is adjusting
The applicant submitted the following information from its adjustment plan to substantiate that the SACU industry is adjusting:
- Investment in new equipment and technology: Considerable investments (more than R10 million over the last 3 years) were made by industry players to improve their technological capabilities, increase efficiencies, and thereby compete more equally with imported products.
- Job creation: All member companies remain committed to retaining skilled and semi-skilled employees and, where feasible, expanding technical roles such as toolmaking, quality control, and production management. Although employment levels declined slightly during the period of investigation, the momentum achieved following the introduction of safeguard duties has largely been sustained. However, the significant increase in imports during the POI poses an immediate threat to these gains.
- Product development: The industry has made notable progress in rationalising raw material qualities following the implementation of safeguard duties. Production levels are not yet fully sustainable. The challenges faced by AMSA’s Newcastle facility have increased the urgency of securing alternative raw material sources, prompting manufacturers to diversify supply through other local suppliers.
- Continuous training for the South African Revenue Service (SARS) to improve customs controls: SAFMA has engaged IS Training, a certified customs training consultancy, and the contract remains ongoing. It has also actively participated in all SARS-led Downstream Steel Forums focused on circumvention and import monitoring. Additionally, SAFMA has contributed to key policy initiatives, including ITAC’s Steel and Renewable Energy Reviews, the South African Renewable Energy Masterplan, and the establishment of the Local Content Compliance Unit under the Steel Fund. It provided input on trade standards, fair trade enforcement, reference pricing, and examples of duty circumvention. The Local Content Compliance Unit now undertakes the monitoring function in collaboration with SARS to address illicit trade activities.
- Support higher levels of designation and localisation: The industry has maintained a strong level of local content and is investing in new product testing equipment to comply with new product applicable standards and support further localisation.
Based on the above, the Commission found that prima facie evidence had been submitted to prove that the SACU Fasteners industry was adjusting while protected by the safeguard measure.