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Itac creates temporary rebate provision for several products

1st February 2024

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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The International Trade Administration Commission of South Africa (Itac) has created a temporary rebate provision for the importation of certain cold-rolled steel and painted steel; a rebate facility for the importation of certain flat-rolled products of iron or non-alloy steel; and a temporary rebate facility for the importation of sheet piling of iron or steel.

The commission has published details of these rebate facilities in three statements issued on February 1.

It points out that Specstrip applied for the creation of a temporary rebate provision for the importation of certain cold-rolled steel and painted steel, of a width of less than 600 mm, painted, varnished or coated with plastics.

Itac says it considered all the relevant information available at its disposal, especially the factors outlined below.

The commission found that the subject products are not manufactured locally. As such, the applicable customs duty has an unnecessary cost-raising effect on the domestic industry.

Moreover, duty relief, through the creation of a rebate provision, should allow the applicant, together with the downstream manufacturing industry, to maintain, and potentially increase, profitability in both the medium and long term.

Also, rebate provision will be made subject to an Itac permit issued in terms of applicable guidelines, rules and conditions.

In light of the foregoing, the commission recommended the creation of a temporary rebate provision for the importation of certain cold-rolled steel and painted steel, classifiable under tariff subheadings 7211.29 and 7212.40, as outlined below.

Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated, not further worked than cold-rolled (cold reduced), other, with a thickness of 0.30 mm or more but not exceeding a thickness of 1.60 mm, with a carbon content by mass of 0.5% or more, classifiable in tariff subheading 7211.29, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit.

Further, flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, painted, varnished or coated with plastics, of a thickness of 0.5 mm or more but not exceeding 1 mm, with a carbon content by mass of 0.17% or more but not exceeding 0.27%, classifiable in tariff subheading 7212.40, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit.

Meanwhile, Webber Wentzel Attorneys, representing Steelbank Merchants, applied for the creation of a temporary rebate provision on ordinary customs and safeguard duties for the importation of certain flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated, classifiable under tariff subheadings 7208.26 and 7208.27.

Factors considered by the commission included that there is currently no manufacturer of the subject products in the Southern Africa Customs Union (Sacu) region.

As such, the applicable customs duty has a cost-raising effect in the manufacture of various automotive products, Itac says.

Moreover, the duty relief, through the creation of a Schedule 4 temporary rebate facility, will result in a cost reduction for the subject products and improve the competitive position of the domestic industry manufacturing various automotive products.

Also, the temporary rebate provisions will be made subject to an Itac rebate permit issued in terms of the applicable rules, guidelines and conditions.

The commission has recommended that the temporary rebate provisions for the importation of certain flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated, classifiable under tariff subheadings 7208.26 and 7208.27 be created, as outlined below.

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, in coils, not further worked than hot-rolled, pickled, of a thickness of 3 mm or more but less than 4.75 mm, classifiable in tariff subheading 7208.26, in such quantities, at such times and subject to such conditions as the Itac may allow by specific permit, provided the products are not available in the Sacu market.

Further, flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, in coils, not further worked than hot-rolled, pickled, of a thickness of less than 3 mm, classifiable in tariff subheading 7208.27, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit, provided the products are not available in the Sacu market.

Lastly, Macsteel Service Centres applied for the creation of a temporary rebate facility for the importation of sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements, excluding those that are cold-rolled (cold-reduced), classifiable under tariff subheading 7301.10.

Itac found that there is currently no manufacturer of the subject products in the Sacu region.

Moreover, the applicable customs duty has an unnecessary cost raising effect on the final users of the subject products; and in light of the foregoing, the commission recommended that a temporary rebate provision be created for the importation of sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements excluding those that are cold-rolled (cold reduced), classifiable under tariff subheading 7301.10, as outlined below.

Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements, classifiable in tariff subheading 7301.10, in such quantities, at such times and subject to such conditions as the Itac may allow by specific permit, provided the goods are not available in the Sacu market.

The temporary rebate provision will be made available subject to a rebate permit issued at such times, in such quantities, and subject to such conditions as Itac may allow by specific permit.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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