Caustic soda rebate created
If you import caustic soda to make soda lye, then you can now not pay the duties on caustic soda, by using the new manufacturing rebate. Click here for more information on the rebate.
Duty increase application on grooved couplings
Rand York have filed another request for duties to be increased, this time on
“Grooved couplings, for a pipe with an outside diameter of 42 mm or more but not exceeding 324 mm, classifiable in tariff subheading 7307.11.90, by the creation of a separate tariff subheading for the said products”; and
“Other cast grooved couplings, for a pipe with an outside diameter of 42mm or more but not exceeding 324 mm, classifiable in tariff subheadings 7307.19.80 and 7307.19.90, by the creation of a separate tariff subheading for the said products”
The bound rate in all three cases is 15%, so presumably this is what is being requested, even though not stated in gazette. This application affect R281 million worth of imports, based on the last year’s imports. The following reasons were given:
- Currently, the market for grooved couplings is fully serviced by imports following the discontinuation of local manufacturing activities. Despite the applicant’s attempts to re-enter the market, increased challenges, including increased competition from low priced imports
have prevented it from doing so; - The initiation of grooved couplings manufacturing in South Africa holds the promise of securing local supply for infrastructure projects, both within the country and across the continent; and
- Tariff support is essential, not only due to its potential to enhance the domestic industry’s price competitiveness against foreign competition, but also to facilitate entry into the broader African market, especially in the context of the African Continental Free Trade Agreement.
Duty increase application on rock drilling parts
Derry Engineering have requested duties be increased on
Certain rock drilling parts, classifiable under tariff subheading 8467.99.90, from free of duty to the WTO bound rate of 20% ad valorem
If successful, this application will increase duties on R126 million worth of imports, based on the imports of the last 12 months.
The reasons provided for this increase are:
- The rock drilling components subject to this application are currently imported into South Africa free of duty. By contrast, the main raw material used to manufacture the subject product carries an import duty of 10%, resulting in a negative effective rate of protection;
- The intensified low-priced imports, mainly originating in India, have distorted the trading environment and effectively replaced local volumes;
- Due to increased import volumes, the applicant has lost significant market share, which has led to job losses;
- Tariff support will enable the domestic industry to replace the high volumes of significantly low-priced imports, mainly originating from Asian countries. As imports are replaced by local production, new job opportunities could be created and domestic capability to manufacture the subject products would be preserved.
There are some very interesting technical problems with this application, which may make the requested duty increase a challenge to achieve. The secret to finding out more is of course to contact us!