On 15 July 2022, ITAC initiated a temporary rebate on the importation of flat-rolled steel or iron products under tariff headings 72.08, 72.09, 72.10, 72.11, 72.12, 7225.1, 7225.99 and 7226.9. The identified tariff headings listed above primarily constitute of hot-rolled, cold-rolled, clad and coated steel products.

As previously referred to in the blog post:  https://xa.co.za/request-for-yet-more-steel-rebates/, the steel industry has been experiencing supply challenges and shortages of flat steel products over and above the adverse ripple effects resulting from the Covid19 pandemic. The depressed local supply has in the past prompted the DTIC to take a contradictory protectionist approach that advocates for duty increases to shield local industry.  However, as expected such measures do not yield positive economic outcomes due to their perverse nature that distort market forces.

This is however a temporary rebate, which means it can only be accessed when the relevant product cannot be supplied locally. An application needs to be made to ITAC for a permit and once they confirm the lack of supply, they will issue the permit and the goods can then be imported without paying the duties.

On 16 March 2021, an application for a duty rebate on steel was submitted by the DTIC. As a result, “A temporary fully duty rebate dated 15 July 2022 has been granted for all imports across tariff headings identified above”

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