Import duties changed on steel bars, articulated dump trucks, windscreens, stemming plugs, automatic slack adjusters, onion powder and electric conductors

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On 16 August 2024, a wave of long-overdue ITAC investigations was finalised. This development brings much-needed relief to applicants and respondents who have been awaiting outcomes on their tariff applications for a substantial amount of time. The seven concluded investigations took an average of 33 months to complete, significantly exceeding the expected timeframe by approximately 27 months. The duration of these investigations ranged from a minimum of 13 months to a maximum of 46 months. This progress offers a glimmer of hope that the remaining overdue investigations will be accelerated to ease the burden on local industry.

Duty increase on steel bars and rods of iron, cold-formed or cold-finished

The customs duty on bars and rods of iron, cold formed or cold finished, tariff subheadings 7215.10, 7215.50, 7228.50 were increased from zero to 10%.

Tariff subheadingShort descriptionGeneralEU / UKEFTASADCMERCOSURAfCFTA
7215.10Of free-cutting steel, not further worked than cold-formed or coldfinished10%FreeFreeFree10%Free
7215.50Other, not further worked than cold-formed or cold-finished10%FreeFreeFree10%Free
7228.50Other bars and rods, not further worked than cold-formed or coldfinished10%FreeFreeFree10%Free

The investigation initiated on 23 October 2020 and took 46 months to complete, exceeding the expected timeline by 40 months.

Duty increase on articulated dump trucks designed for off-highway use

The import duties on articulated dump trucks was increased to 10%, through the creation of 8-digit tariff subheadings 8704.10.20, 8704.10.30.

Tariff Subheading Short descriptionGeneralEU / UKEFTASADCMERCOSURAfCFTA
8704.10.20Articulated dumpers with G.V.M. not exceeding 50t, as defined in
Additional Note 7 to Chapter 87
10%5%10%Free10%6%
8704.10.30Articulated dumpers with a G.V.M. exceeding 50t, as defined in
Additional Note 7 to Chapter 87
10%freefreefree10%Free

Bell Equipment brought the application and cited the deteriorating economic conditions in South Africa and Sub-Saharan Africa as the primary motivation for seeking import tariff protection. They argue that the decline has led to overcapacity in the domestic industry and increased competition from foreign producers.

The investigation initiated on 29 January 2021 and then reinitiated on 1 December 2021 to accommodate scope revisions. The process concluded after 43 months, exceeding the anticipated timeline by 37 months.

Duty increase on windscreens

The duties were increased to 30% on windscreens imported under tariff subheading 8708.22, by way of creating new 8-digit tariff codes.

The following new 8-digit tariff subheadings have been created:

Tariff SubheadingShort descriptionGeneralEU / UKEFTASADCMERCOSURAfCFTA
8708.22.10Front windscreens (windshields)30%15%20%Free30%30%
8708.22.90Other20%15%20%Free20%20%

Shatterprufe, a division of PG Group, initiated an application on 18 November 2022, alleging that the creation of the newly created tariff subheading 8708.22 differentiating motor vehicle windows and other motor vehicle parts for windscreens had created an opportunity for circumvention. The applicant, therefore, requested a duty increase, creating a level playing field between imports and locally produced products.

The investigation process spanned 21 months, exceeding the expected timeline by 15 months.

Duty reduction on stemming plugs for mining and civil blast holes

The import duties were reduced on stemming plugs for mining and civil blast holes, tariff subheading 3926.90.89. The newly gazetted duties have decreased from 20% ad valorem to the requested duty-free.

ERG Industrial brought the application in attempt to reduce their cost of production as there is no local SACU producer for the subject product.

Initiated on 23 April 2021, the investigation process spanned 40 months, exceeding the expected timeline by roughly 34 months.

Duty reduction on automatic slack adjusters

The customs duties have been removed on automatic slack adjusters, cleared under tariff subheading 8716.90, through the creation of a separate 8-digit.

Citing a lack of domestic SACU manufacturers for the product in question, BPW Axles applied for a duty reduction.

The investigation was initiated on 17 September 2021 and concluded 35 months later, representing a delay of approximately 29 months.

Long-awaited onion powder rebate approval

On 16 August 2024, ITAC published an amendment granting a full-duty rebate on imports of Onion powder tariff subheading 0712.20.

Sensient Technologies South Africa applied for a duty reduction on onion powder, citing the absence of local production within SACU. The absence of a local onion powder producer and the existing 20% duty significantly impact the cost of production.

The investigation was initiated on 29 April 2022 and  finalised 28 months later, exceeding the expected timeline by roughly 22 months.

Rebate amendment on electric conductors

ITAC published amendments and renumbering of rebate items 316.17/00.00/01.00, 316.17/00.00/02.00, and 316.17/00.00/03.00 on 16 August 2024.

Below are the various rebate amendments published in the newly published gazette:

Rebate itemDescriptionExtent of Rebate
316.17/00.00/01.00Goods of any description (excluding mounted or populated circuit boards, picture tubes fitted with components other than the
deflection coil and cabinets fitted with components and any apparatus classifiable in tariff heading 85.28), for the
manufacturing of reception apparatus for television incorporating a cathode-ray tube (CRT) classifiable in tariff heading
528.72.20 and 8528.73.20, whether or not combined in the same housing with radio-broadcasting receivers or sound or video
recording or reproducing apparatus
Full duty
316.17/00.00/02.00Goods of any description (excluding mounted or populated circuit boards, picture tubes fitted with components other than the
deflection coil and cabinets fitted with components and any apparatus classifiable in tariff heading 85.28), for the
manufacturing of reception apparatus for television incorporating a cathode-ray tube (CRT) classifiable in tariff heading
528.72.20 and 8528.73.20, whether or not combined in the same housing with radio-broadcasting receivers or sound or video
recording or reproducing apparatus
Full duty
316.17/00.00/03.00Goods of any description (excluding goods of heading 85.28 and mounted or populated circuit boards), used in the
manufacture of reception apparatus for television not designed to incorporate a video display or screen, classifiable in tariff
subheading 8528.71, at such times, in such quantities and subject to such conditions as the International Trade Administration
Commission may allow by specific permit
Full duty

The investigation, initiated on 21 July 2023, concluded after 13 months, exceeding the expected timeframe by approximately seven months.

Say hello at info@xagta.com for all tariff investigations related inquiries.

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