Itac on 29 March announced a proposed increase in the “general” rate of customs duty on fully automatic top loader washing machines, each of a dry linen capacity not exceeding 10kg, classifiable in tariff subheading 8450.11, from free of duty to 30% ad valorem.
The application was lodged by Defy Appliances (Pty) Ltd who reasoned that:
· Defy intends to start manufacturing fully automatic top loader washing machines and the new production lines will be fully operational in 2019.
· There is currently no customs duty applicable to fully automatic top loader washing machines that are imported. As such, Defy will not have protection once the manufacturing commences.
· The white goods industry in South Africa has been facing challenges at an operational level. These challenges include amongst others high cost of raw material (steel), rising low-priced imports, energy and labour costs. Therefore, there is a need to protect and maintain the investment and job creation.
· The 30% tariff increase requested will serve as an incentive for other companies to invest in the manufacturing of fully automatic washing machines in the Southern African Customs Union (SACU) region. This would be to the benefit of the domestic industry.
Comment is due by 12 April 2019.
Story by: Riaan de Lange
