On 18 November 2022, the International Trade Administration Commission of South Africa (ITAC) invited comment on the increase in the ‘General’ rate of customs duty on coated welded wire mesh, classifiable under tariff subheading 7314.39, from 5% ad valorem to the World Trade Organization (WTO) bound rate of 15% ad valorem, on which comment is due by 18 November 2022.
The application was lodged by Clear Creek Trading 167 (Pty) Ltd, trading as Wireforce, who reasoned that:
- The locally produced coated welded wire mesh offers an opportunity for import replacement as well as export opportunities;
- An additional 10% tariff protection would assist the industry in the initial stage to develop, increase economies of scale and enhance global competitiveness;
- There is an anomaly in the tariff structure as the main input material used in the manufacture of coated welded wire mesh (i.e. wire rod) currently attracts a higher ordinary customs duty of 10% ad valorem whilst the end-product remains significantly below the WTO bound rate at only 5% ad valorem; and
- Should the tariff support not be granted and low-priced imports of the coated wire mesh, specifically those from the People’s Republic of China, continue to increase at the rate observed in recent years, this would be to the detriment of the Southern African Customs Union (SACU) domestic industry.
