Itac recommends increase in customs duties for some polymer-based pipes, hoses
The International Trade Administration Commission of South Africa (Itac) has recommended an increase in the customs duty on specific polymer-based pipes and hoses.
Customs duty on seamless, multi-layered pipes with and without fittings will rise from 15% to 20% ad valorem, with new eight-digit tariff subheadings created for clarity, Itac says.
Differing duty rates on pipes with and without fittings could encourage circumvention. Raising the duty to 20% would strengthen protection for local value addition, the commission says.
Riifo Southern Africa is the sole producer of these specialised products within the Southern African Customs Union (SACU). Despite steady growth in production and sales, Riifo has faced persistent challenges, including underutilised capacity, rising costs, and sustained losses, all compounded by cheaper imports.
Itac’s investigation found that Riifo is the only known local manufacturer of the product. While its production volumes have increased, its capacity remained underused and costs climbed, while profitability stayed negative.
Further, imported alternatives continued to undercut local prices.
This increase in the custom duty is designed to level the playing field against imports and unlock the potential of South Africa’s manufacturing sector.
The duty structure will be reviewed after three years to assess its impact across the industry value chain, Itac says.
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