The International Trade Administration Commission of South Africa (Itac) on 20 March called for comment on the creation of a Rebate Item for the extent of the rebate of the duty on woven fabrics of polyester fibres, classifiable in tariff subheadings 5513.11, 5210.31, 5210.31, 5407.82, 5209.32, and 5208.33 used in the manufacture of men’s or boys’ and women’s or girls’ trousers, classifiable in tariff subheadings 6203.4, 6203.42.10, 6203.49.10, 6204.6, 6204.62.10, 6204.69.10, 6205.20, 6205.90, 6206.30, and 6206.90, which is due by 17 April.
Tariff subheading 5210.31 (a) “Woven fabrics of cotton, containing 65 per cent by mass of cotton, mixed mainly or solely with polyester, of a mass of 105 g/m² or more but not exceeding 125g/m², dyed, plain weave, classifiable in tariff subheading 5210.31, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, for use in the manufacture of men’s or boys’ and women’s or girls’ trousers, classifiable in tariff subheading 6203.42.10 and 6204.62.10, respectively.”
Tariff subheading 5210.31 (b) “Woven fabrics of cotton, containing 65 per cent by mass of cotton, mixed mainly or solely with polyester, of a mass of 105 g/m² or more but not exceeding 125g/m², dyed, plain weave, classifiable in tariff subheading 5210.31, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, for use in the manufacture of men’s or boys’ and women’s or girls’ shirts, classifiable in tariff subheading 6205.20 and 6206.30, respectively.”
Tariff subheading 5407.82 “Other woven fabrics , containing 65 per cent of polyester by mass, mixed mainly or solely with 35 per cent of cotton by mass, dyed, of a mass of 230 g/m² or more but not exceeding 285 g/m², classifiable in tariff subheading 5407.82, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, for the manufacture of men’s or boy’s and women’s or girls’ trousers and shirts, classifiable in tariff subheadings 6203.49.10, 6204.69.10, 6205.90 and 6206.90, respectively.”
Tariff subheading 5209.32 “Woven fabrics of cotton, containing 97 per cent of cotton, of a mass of 235 g/m² or more but not exceeding 255 g/m², dyed, with a 3-thread twill, classifiable in tariff 5209.32, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, , for the use in the manufacture of men’s or boys’ and women’s or girls’ trousers and shirts, classifiable in 6203.42.10, 6204.62.10, 6205.20 and 6206.30, respectively.”
Tariff subheading 5208.33 “Woven fabric of 100% cotton, of a mass of 100 g/m² or more but not exceeding 120 g/m², dyed, with 3-thread or 4-thread twill, including cross twill, classifiable in tariff subheading 5208.33, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, for the use in the manufacture of men’s or boys’ and women’s or girls’ shirts, classifiable in 6205.20 and 6206.30, respectively.”
The application was lodged by Luomo Atlantis Manufacturing (Pty) Ltd who reasoned that:
(a) The fabrics used for the manufacture of the subject trousers and shirts are not available locally and the 22% ad valorem customs duty renders the end-products uncompetitive.
(b) In order for the company to be price competitive and secure orders in the domestic market, it requires a duty waiver on the imported subject fabrics.
(c) Despite the significant investment in lean production techniques and the fabric price, very weak exchange rates are going to result in losses on these end-products and poses a risk of this production line.
(d) Luomo Atlantis Manufacturing indicated that the customs duty waiver would further assist it to maintain 57 employees and further create 50 jobs in order to meet the consumer demand.
Story by: Riaan de Lange