Itac grants a 20% duty increase on certain rock drilling equipment parts
Itac grants a 20% duty increase on certain rock drilling equipment parts
The International Trade Administration Commission of South Africa (Itac) has recommended an increase in the general rate of customs duty on certain rock drilling equipment parts, from free of duty to the World Trade Organisation bound rate of 20% ad valorem.
This follows an application made by South African manufacturer and supplier of valve gear and consumable spares for rock drills Derry Engineering.
In a media statement, Itac explains that the commission considered various factors before arriving at its decision.
This includes the increase in imports of the subject products into the domestic market, with most imports originating in Asia; and the price disadvantages experienced by the domestic manufacturing industry against imports of similar products.
Itac says it also considered that the subject products form part of the domestic steel industry value chain.
Itac says the South African Steel and Metal Fabrication Masterplan identifies the decline in production volumes, increased imports, rising prices of electricity and high prices of raw materials to be among the long-standing problems facing the domestic primary steel manufacturing industry and the entire value chain.
Further, Itac notes that it has recommended that the proposed duty on the subject products be reviewed after a period of three years following implementation of the tariff support to assess the performance of the domestic industry.
