- March 17, 2021
- Posted by: Taapano Paradza
- Categories: Duty Removals, Industrial Rebates, Trade Solutions
On 16 March, the International Trade Administration Commission (ITAC) initiated a rebate investigation on safeguard duties and ordinary Customs duties covering various flat-rolled products.
The investigation has initiated following a policy directive from the Trade, Industry, and Competition Minister to investigate the possibility of creating the rebate. A rebate provides an exemption of duty payment. In this case the imported products are levied safeguard and ordinary Customs duties. The investigation, therefore, covers both. A rebate can be a temporary rebate or an industrial rebate. A temporary rebate is currently proposed.
Temporary rebates are subject to a permit being issued by ITAC prior to importing. This provides some level of protection to local manufacturers or producers because imported quantities are limited via the permit system. Moreover, once the temporary situation that resulted in the creation of the temporary rebate ceases to exist; ITAC may decide not to issue rebate permits.
Scope of the investigation
Specifically, the investigation covers the following product dimensions:
“Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated, classifiable in tariff heading 72.08…”
“Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated, classifiable in tariff heading 72.09…”
“Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated, classifiable in tariff headings 72.10…”
“Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated, classifiable in tariff headings 72.11…”
“Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated, classifiable in tariff headings 72.12…”
“Flat-rolled products of other alloy steel, of a width of 600 mm or more, of silicon-electrical steel classifiable in tariff heading 7225.1…”
“Other flat-rolled products of other alloy steel, of a width of 600 mm or more, other, classifiable in tariff heading 7225.99…”
“Other flat-rolled products of other alloy steel, of a width of less than 600 mm, classifiable in tariff heading 7226.9…”
Reasons for the application
Concerns were received from a number of downstream sectors indicating that there are interruptions in the reliable supply of steel in the domestic market resulting in critical shortages.
The downstream manufacturers attribute the critical shortage of steel to unplanned and unforeseen shutdown at ArcelorMittal South Africa Limited (“AMSA”) plants. Furthermore, it was stated that this has worsened due to the company’s decision to restart its second blast-furnace at its Vanderbijlpark post the Covid19 lockdown.
Submission deadline
Interested parties have 2 weeks from 16 March to make submissions. The Commission will consider extension requests submitted in terms of Section 20.5 of the Amended Tariff Investigation Regulations.
Need assistance in making a submission? Contact us at infor@tradesolutions.co.za