Week after week, this column reports on tariff applications, trade remedy applications, tariff amendments and trade remedy amendments, and, on the odd occasion, on import and export control notifications. In such instances, reference is made to the International Trade Administration Commission of South Africa (Itac).

But what do you know about Itac? I am surprised that the mere mention of ‘Itac’ invokes about what Itac is, what it does and how long it has been in existence?

Well, Itac celebrate its tenth year of existence. An agency of the Department of Trade and Industry (DTI), Itac was established on June 1, 2003, through an Act of Parliament. It replaced the Board on Tariffs and Trade (BTT), which was established on September 24, 1986, and its predecessor, the Board of Trade and Industries, which was established on July 8, 1921 (the BTI was renamed the Board of Trade and Industry). It, thus, has a collective history of nearly 100 years.

Itac’s vision to be an institution of excellence in international trade administration, enhancing economic growth and development. Its mission is to create an enabling environment for fair trade through the efficient and effective administration of trade instruments and providing technical advice to the Economic Development Department (EDD) and the DTI.

The aim of Itac, as stated in its Act, is to foster economic growth and development in order to raise incomes and promote investment and employment in South Africa and the Southern African Customs Union (Sacu) by establishing an efficient and effective system for the administration of international trade subject to its Act and the Sacu Agreement. In terms of the Sacu Agreement, Itac will be replaced in its current Sacu role once a Sacu tariff book has been established. However, none of the other Sacu members has established its own Itac equivalents, and Sacu has yet to establish a tariff board. There is also no indication as to when this would be done.

Itac has three core functions: to conduct tariff investigations, conduct trade remedy investigations and implement import and export control. (Of the around 6 650 South African tariff lines, 276 are subject to import control and 177 to export control.)

It is not possible that Itac has not touched your life in one way or another, even if you argue that you are only a consumer of domestically produced or manufactured products.

But what is it that Itac has done during its existence, besides import and export control? A quick review of the Itac website (undertaken on May 10) reveals that the last tariff/trade remedy investigation report that Itac published was Report No 424. However, only 400 reports are available for downloading. An analysis of the 400 reports indicates that 163 (40.75%) are in respect of antidumping investigations, 96 (24%) the rebate of the rate of customs duty, 74 (18.5%) a reduction in the rate of customs duty, and 35 (8.75%) an increase in the rate of customs duty.

The latter reports (since Report 400) indicate a recent tendency for applications for an increase in the rate of customs duty, with six of the reports relating to this, while five were for antidumping duties, four were for a rebate of the rate of customs duty, two were for a review of the rate of customs duty and one was for a reduction in the rate of customs duty.

With respect to applications for an increase in the rate of customs duty, Itac explains that it is now placing greater emphasis on the principle of reciprocity when granting tariff support to industries, varying from one sector to another. According to Itac, this means that tariff amendments will depend on a commitment by the beneficiaries regarding how they will perform against government’s set policy objectives, in particular employment and investment. Itac states that tariff increases will be for a specific period, after which tariffs may be reviewed.

Scrap Metal Exports
In the Government Gazette of May 10, the EDD published a policy directive on the exportation of ferrous and nonferrous waste and scrap metal. The notice follows earlier Government Gazette notices – published on January 25 and February 22.

According to the latest notice, ferrous and nonferrous waste and scrap metal should not be exported unless it has been offered to domestic users of scrap for a period determined by Itac at a price discount or other formula determined by Itac. This is intended to facilitate local, rather than export, sale.

Further, to ensure that the type and quality of scrap metal that is intended for export are accurately reflected on applications for export permits, all permit applications should be accompanied by confirmation from a metallurgical engineer or a suitably qualified person regarding the type, quality and quantity of scrap.

The notice indicates that the policy will be in place for five years. At the end of this period, it will be reviewed to determine whether it should be terminated or extended for a limited period, with or without amendment.

Wheat Price Increase
In the Government Gazette of May 17, Itac informed of an increase in the domestic dollar-based reference price for wheat, which was approved by the Minister of Trade and Industry on April 25.