Cold-rolled steel

On 23 November 2018, ITAC initiated a duty increase investigation on flat rolled products of iron or non alloy steel, plated or coated with tin (“tinplate”), classified under tariff subheadings 7210.11, 7210.12.10, 7210.12.90, and 7212.10. Tinplate is used in making packaging materials such as food cans, can ends, containers and a range of closures for food processing.

If successful, a 10% duty will be imposed on the product, which is currently imported duty free. The duty will not impact imports from countries with which South Africa has Free Trade Agreements with.

The application was brought by the South African Iron and Steel Institute (SAISI) on behalf of ArcelorMittal South Africa Limited (AMSA). AMSA previously brought a similar application on tinplate in 2015. Although an investigation was initiated AMSA later withdrew its application and the investigation was terminated, following engagements with some of its customers. However, it appears there are efforts to revisit that decision considering that there has been a change of leadership at AMSA since then.

In motivating its latest application, AMSA stated that

  1. The current tariff structure in relation to the subject products is untenable given the recent developments of volumes and value of imports into the SACU market.
  2. Imports have substantially increased over the last five years from Asian countries, making domestic production static.
  3. The domestic industry of the subject product is experiencing intense price competition on the price of the subject products vis-à-vis imported products.
  4. The tariff increase requested will prevent imports from entering the country at impermissible low prices.

Does a duty on tinplate impact your business? Interested parties have until 20 December 2018 to respond.

If you would like to respond to this application, please contact us on info@xa.co.za

 

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