Itac on 28 February announced the proposed increase in the ‘general’ rate of customs duty on high chrome grinding media balls, classifiable in tariff subheading 7325.9, to 15% ad valorem.
The application was lodged by Grinding Media South Africa (Pty) Ltd (GMSA) who reasoned that there has been an increase in low-priced imports of high chrome grinding media balls, putting severe pressure on output, capacity utilisation, profit margins and the viability of the Southern African Customs Union (SACU) manufacturing. The SACU industry is struggling to compete with imports due to cost push pressures, with contributing factors including the prices of scrap, ferrochrome and electricity. The current trend poses the threat of large-scale job losses and reduces the ability to re-invest in productive machinery.
Comment is due by 27 March 2020.
Story by: Riaan de Lange