On 18 November 2022, the International Trade Administration Commission of South Africa (ITAC) called for comment on the increase in the ‘General’ rate of customs duty on front windscreens (windshields), rear windows and other windows specified in subheading Note 1 to Chapter 87, by way of creating a new 8-digit tariff subheading for front windscreens (windshield) classifiable under tariff subheading 8708.22, on which comment is due by 18 December 2022.
The application was lodged by Shatterprufe, a division of PG Group (Proprietary) Limited who reasoned that:
· Historically windscreens for vehicles to be used in the replacement market were imported and classified under tariff subheading 7007.21.20, which attracts a 30% ad valorem customs duty;
· A new tariff subheading 8708.22 was created and came into effect on 01 January 2022 to make a clear distinction between motor vehicle windows and other motor vehicle parts as per tariff subheading 8708.29. This tariff subheading carries a 20% ad valorem customs duty;
· As a result of the creation of the new tariff subheading 8708.22, the opportunity now exists that this tariff subheading can be used to import windscreens legally and/or to circumvent the ordinary rate of customs duty of 30% ad valorem that currently applies to tariff subheading 7007.21.20 also for the importation of windscreens;
· It would thus allow for windscreens to be imported at a 10-percentage point lower rate (or 33% lesser rate) of ad valorem duty, which products would then compete with the windscreens that are produced in the Southern African Customs Union (SACU) for use in the aftermarket; and
· Such circumvention would also undermine the importers that import windscreens and classify them under tariff subheading 7007.21.20.
