Defy have requested yet another duty increase. This time the product is fully automatic top loader washing machines, each of a dry linen capacity not exceeding 10kg classifiable under tariff subheading 8430.11. If successful the duty will increase from free of duty to 30% (bound rate). This is a large increase.

The applicant Defy Appliances (Pty) Ltd provided the following reasons for the application:

  1. Defy intends to start manufacturing fully automatic top loader washing machines and the new production lines will be fully operational in 2019.
  2. There is currently no customs duty applicable to fully automatic top loader washing machines that are imported. As such, Defy will not have protection once the manufacturing commences.
  3. The white goods industry in South Africa has been facing challenges at an operational level. These challenges include amongst others, high cost of raw materials (steel), rising low-priced imports, energy and labour costs. Therefore, there is a need to protect and maintain the investment and job creation, and  
  4. The 30% tariff increase requested will serve as an incentive for other companies to invest in the manufacturing of fully-automatic washing machines in the SACU region. This would be to the benefit of the domestic industry.

Interested parties have until 26 April to respond.

If you are impacted by this application, please contact us on info@xa.co.za.

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