Import duties have been increased on certain stranded wire ropes and cables with effect from 15 June 2018. The duties have been increased to 15% on certain tariff lines.

The new duties are accompanied by a complete change in the descriptions of the tariff subheadings, which are based on diameters and type of the rope. Given the numerous tariff lines, it’s vital to ensure that products are classified correctly to avoid being found on the wrong side of SARS.

The duty increases are as a result of an application by Scaw Metals, one of the SACU’s largest manufacturers of stranded wire ropes and cables. Scaw Metals and other SACU manufacturers do not manufacture the full range of products demanded by industry. In such a case it’s vital that products not manufactured locally not be subjected to the new duties.

Rebate provision created

The good news is that a rebate provision has been created for stranded wire ropes and cable products not manufactured locally. Importers will need to apply for a rebate permit at ITAC to clear qualifying products under rebate of duty. ITAC will publish guidelines on how the rebate will work.

Upcoming review of anti-dumping duties on stranded wire and wire ropes 

It is important to note that anti-dumping duties on stranded wire from China and wire ropes from Germany and UK will be expiring in August 2019.

A few months before their expiry local manufacturers of these products have an opportunity to submit an application to ITAC showing that the removal or lapsing of the duties may cause injury. Should such an application not be made, the anti-dumping duties will lapse.

Given the latest duty increases it can be expected that Scaw Metals and other local manufacturers would want the anti-dumping duties to remain in place for another period of 5 years.

Once an investigation is initiated exporters have an opportunity to get the anti-dumping duties imposed on their products reviewed or removed. ITAC calculates company specific anti-dumping duties and then an anti-dumping duty for any other exporter from a specific country.

Anti-dumping duties for participating exporters are typically lower (or none at all) than for those not participating although that is not guaranteed.

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