On 22 March 2013 the International Trade Administration Commission of South Africa (Itac) announced the proposed reduction in the rate of customs duty on constant velocity joints (CV joints), classifiable under tariff subheading 8708.50.90, from 20% ad valorem to free of customs duty by the creation of an additional 8-digit tariff subheading for CV joints under tariff subheading 8708.50. The applicant, Masterparts (Pty) Ltd, reasoned that there were no local manufacturers of CV joints within the Southern African Customs Union (Sacu), and the current customs duty only serves as a cost-raising effect. Comments are due by April, 19, 2013. The prevailing rates of customs for tariff subheading 8708.50.90, dependant on the origin of the imported product, is 20% ad valorem (General); 15% ad valorem (European Union); 20% ad valorem (European Free Trade Association); and 0% (free) (Southern African Development Community). The 8-digit tariff subheading is a South African-specific tariff subheading. Tariff subheading 8708.50 is subdivided into seven tariff subheadings. Should the proposed tariff application be successful then all imported products will be subject to a rate of customs duty of free (0%). It would be interesting to see what happens to the price of CV joints, which in theory should reduce in price between 15% to 20% dependent on the country of origin. As history suggest, this would be unlikely. The application is evidence of South Africa’s reducing manufacturing capacity, which negatively impacts employment. Although a case may be made that imports do provide employment opportunities, it does not compensate for the loss of manufacturing employment opportunities.