The International Trade Administration Commission of South Africa (ITAC) extended an invitation to comment on the proposed increase in the rate of the ‘Ordinary’ customs duty on certain rock drilling parts, classifiable under tariff subheading 8467.99.90, from free of duty to the World Trade Organization bound rate of 20% ad valorem”, on which comment is due by 16 May 2025.
The application was lodged by Derry Engineering (Pty) Ltd who offered the following reasoning:
- The rock drilling components subject to this application are currently imported into South Africa free of duty. By contrast, the main raw material used to manufacture the subject product carries an import duty of 10%, resulting in a negative effective rate of protection;
- The intensified low-priced imports, mainly originating in India, have distorted the trading environment and effectively replaced local volumes;
- Due to increased import volumes, the Applicant has lost significant market share, which has led to job losses;
- Tariff support will enable the domestic industry to replace the high volumes of significant low-priced imports, mainly originating from Asian countries. As imports are replaced by local production, new job opportunities could be created, and the domestic capability to manufacture the subject products would be preserved.