The local fastener producers have barely put down their glasses of champagne following the implementation of an eye watering 48.01% safeguard duty on set screws, when they apply for yet more duty protection. This 48.01% is on top of an already high 30% normal Customs duty. Take a moment to digest that. That’s a very large 78% duty on set screws.
That was on the 22nd February 2019. Now barely a week later, they are asking for safeguard duties on “Threaded fasteners of iron or steel: bolt ends & screw studs, screw studding and other hexagon nuts (excluding those of stainless steel and those of identifiable for aircraft)”, imported under tariff subheadings 7318.15.41, 7318.15.42 and 7318.16.30
The applicant for bolt ends, screw studs and screw studding is T&I Chalmers, “which constitutes 70% of total SACU industry production volumes.” The applicants for hexagon nuts are Transvaal Pressed Nuts, CBC Fasteners and SA Bolt Manufacturers “together representing more than 90% of the total SACU industry by production volumes”
The requested duty position
The gazette notice does not indicate the requested duty position, however a few important principles need to be borne in mind:
- A safeguard duty will impact all imports unless the volumes being imported are below 3% or unless the countries exporting are less developed countries.
- Safeguard duties can only remain in place for 3 years and have to reduce each year, so that the safeguard duty is reduced to zero at the end of year 3.
- Any provisional duties can only remain in place for a maximum of 200 days and must either be converted to a final duty before the end of the 200 days or must be refunded. Either way, the period the provisional duty is in place, forms part of the 3 year period mentioned above.
- Any safeguard duty will be imposed on top of the 30% normal duty currently in place.
Timeframe to respond
If you are impacted by this investigation and wish to respond, please send us a mail on email@example.com
The deadline to respond is 21 March 2019.
A 2-week extension may be granted on good cause shown, but this is by no means guaranteed.