On 25 September 2015 the South African Revenue Service (Sars) announced an increase in the ‘general’ rate of customs duty on zinc coated galvanised steel, aluminium zinc coated steel and painted steel classifiable in tariff subheadings 7210.41, 7210.49, 7210.61, 7210.70, 7210.90, 7212.30, 7212.40 and 7225.99 from free of customs duty to 10% ad valorem. The tariff amendments were effective on the day.
The application, lodged by Southern Africa Coil Coaters Association (SACCA) comprising ArcelorMittal South Africa Limited and Safal Steel (Pty) Ltd was published on 19 December 2014, with comment due by 23 January 2015.
The applicants argued that (i) Imports have exponentially increased over the last five years from Asian countries making domestic production static; (ii) South African producers of the subject product are suffering from intense import competition on the price of the subject product. Even though per-unit prices have risen over the last three years, it has been at a pace substantially lower than the increase in per unit cost of production. This has resulted in prices being significantly suppressed, especially for galvanised and painted steel; and (iii) The tariff increase requested will be a relief to the serious economic conditions of the industry. It will prevent imports from entering the country at impermissibly low prices.
The application took 280 days or just over nine months to complete.
