On 28 September the International Trade Administration Commission of South Africa (Itac) published its seventh tariff application for an increase in the rate of customs duty on “combined refrigerator freezers, fitted with separate external doors: Other” classifiable under tariff subheading 8418.10 from 25% ad valorem to 30% ad valorem through the creation of an 8-digit tariff subheading, on which comment is due by 26 October.
Defy Appliances (Pty) Ltd lodged the application, reasoning that (i) The global steel crisis is severely impacting the Southern African Customs Union (Sacu) steel value chain, which is currently struggling to sustain jobs and investment; (ii) Defy re-launched its East London plant following an investment of approximately R120 million to manufacture side-by-side refrigerators; (iii) This investment is due to a growing consumer base in Africa; (iv) The Sacu white goods industry has been under pressure, as a result of increasing low priced imports, putting the viability of the industry at risk; (v) The customs duty increase will ensure job retention, additional Sacu market share, and enable competitiveness in the export markets; and (vi) The customs duty increase will be instrumental in supporting the current and future plans for the introduction of additional product range.