On 22 October 2021, the International Trade Administration Commission of South Africa (ITAC) called for comment on the proposed increase in the ‘General’ rate of customs duty on biaxially orientated polypropylene (BOPP), classifiable in tariff subheadings 3920.20.50 and 3920.20.55, from free of duty to 10% ad valorem through the creation of two additional 8-digit tariff subheadings:
- “Other plates, sheets, film, foil and strip of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials: Biaxially oriented with a thickness exceeding 0.009 mm but not exceeding 0.012 mm, not heat shrinkable as defined in Additional Note 2 to Chapter 39, unprinted, not metallized under tariff subheading 3920.20.”
- “Other plates, sheets, film, foil and strip of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials: Biaxially oriented with a thickness exceeding 0.009 mm but not exceeding 0.012 mm, not heat shrinkable as defined in Additional Note 2 to Chapter 39, unprinted, metallized under tariff subheading 3920.20.”
The application was lodged by SRF Flexipak (South Africa) (Pty) Ltd who reasoned that amongst other considerations BOPP continued to be imported into South Africa, despite the presence of SRF and the availability of locally manufactured BOPP. It continues to face challenges from imports of BOPP from various countries, including Europe. Despite the tariff increase application for protection, the customs duty will only provide protection for goods imported under the general rate, whilst imports from European countries will not attract a duty given the free trade agreement between the European Union (EU) and the Southern African Customs Union (SACU). In addition, SRF highlighted that BOPP had gained more popularity throughout the world, particularly in South Africa, due to its diverse end applications as flexible packaging material. Due to the growth, SRF is of the view that South Africa is becoming an increasingly attractive target for BOPP imports. In addition, SRF has undertaken various initiatives to protect and grow their investment and market share and show that they are committed to growing the South African market. In addition, SRF has remained supportive of the converters projects in applying for duty protection as manufacturers.
Comment is due by 19 November 2021.
The Notice is available on request.