On 18 November 2022 ITAC initiated a tariff investigation to increase in the general rate of customs duty on “Front windscreens (windshields), rear windows and other windows specified in subheading Note 1 to Chapter 87” classifiable under tariff subheading 8708.22.
The application was brought by Shatterprufe, a division of PG Group. The reason for this application is because windscreens for vehicles used to be imported under tariff subheading 7007.21.20, which attracts a 30% import duty. As of January 2022, a new tariff subheading was created, 8708.22, attracting a 20% import duty, in order to distinguish between motor vehicle windows and other motor vehicle parts.
However, the new tariff subheading creates an opportunity for windscreens to be imported legally and/or to circumvent the 30% import duty that currently applies to tariff subheading 7007.21.20. By importing at a 10% lower rate, these products are in direct competition with the SACU products. It also challenges the importers still importing under tariff subheading 7007.21.20.