Protection of locally produced structural steel paramount

14th August 2015

By: Bruce Montiea

Creamer Media Reporter

  

Font size: - +

Local designation is industry’s most effective tool when protecting the local steel construction industry against imported fabricated structural steel, says steel construction industry body the Southern African Institute of Steel Construction (Saisc).

Saisc industry development executive Kobus de Beer tells Engineering News that the Department of Trade and Industry’s (DTI’s) promotion of local designation in the upscaled Industrial Policy Action Plan (Ipap), launched last year, is good news for the industry.

“For two years, we have been proposing to the DTI that it consider designating fabricated structural steel so that government departments and parastatals are obliged to buy and use locally produced steel,” he says.

The principal objective of Ipap is to achieve structural change by encouraging the development, growth and increased competitiveness of the South African manufacturing sector.

Recommendations
De Beer tells Engineering News that Saisc made three recommendations to Trade and Industry Minister Dr Rob Davies in June during a meeting with him at the Team Exports South Africa (Tesa) export workshop held in Pretoria.

Firstly, Saisc suggested that, if a company imports a designated product, such as fabricated structural steel, it should be required to do so under the proper Harmonised Commodity Description and Coding System (HS Code) so that it can pay a 15% import duty. This will also enable the South African Revenue Service to capture the product correctly, statistically, adds De Beer.

The HS Code is an internationally standardised system of names and numbers to classify traded products.

Secondly, Saisc recommended that the DTI create an ombudsman, responsible for designation, to adjudicate in trading matters that have to do with designation.

Thirdly, the industry body recommended that the DTI embark on a roadshow for buyers, especially government departments and parastatals, to promote buying and using locally fabricated structural steel, says De Beer.

“The department should educate government representatives and parastatals on what designation means and what its benefits are. Further, they should be made aware that they will not regret buying and using locally produced fabricated structural steel, as the quality is right and the prices are cheaper. Further, local jobs will not only be preserved but more will also be created,” he explains.

Meanwhile, the Tesa export workshop, which was themed Export-driven Economic Growth and Industrialisation in South Africa, was a three-day conference organised by the DTI. De Beer says the conference was meant to coordinate South African companies’ export efforts and to receive input from companies on how their position in the industry could be improved.

“The recommendations were received well,” he says, adding that Saisc plans to follow up with a formal letter to strengthen its request and that there is “a very good chance” that the DTI will take heed of these suggestions.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION