On 21 July 2021, the International Trade Administration Commission of South Africa (ITAC) invited comment on the amendment and renumbering of Rebate Items 316.17/00.00/01.00, 316.17/00.00/02.00, and 316.17/00.00/03.00, used for the importation of other electric conductors for a voltage not exceeding 1 000 v, fitted with connectors, classifiable under tariff subheading 8544.42. Comment is due by 18 August 2023.
The Rebate Items’ amendments are as follows:
· Amendment and renumbering of Rebate item 316.17/00.00/01.00, as follows: Renumbered to 316.17/00.00/04.00 – “Goods of any description (excluding mounted or populated circuit boards, picture tubes fitted with components other than the deflection coil and cabinets fitted with components and any apparatus classifiable in tariff heading 85.28 and other electric conductors, for a voltage not exceeding 1 000 V, fitted with conductors classifiable in tariff subheading 8544.42), for the manufacturing of reception apparatus for television incorporating a cathode-ray tube (CRT) classifiable in tariff heading 8528.72.20 and 8528.73.20, whether or not combined in the same housing with radio-broadcasting receivers or sound or video recording or reproducing apparatus”
· Amendment and renumbering of Rebate item 316.17/00.00/02.00, as follows: Renumbered to 316.17/00.00/05.00 – “Goods of any description (excluding mounted or populated circuit boards and display panels, irrespective of their degree of completion and any apparatus classifiable in heading 85.28 and other electric conductors, for a voltage not exceeding 1 000 V, fitted with conductors classifiable in tariff subheading 8544.42), at such times, in such quantities and under such conditions as the International Trade Administration Commission may allow by specific permit, for the manufacture of reception apparatus for television incorporating a display other than a cathode-ray tube (CRT) classifiable in subheadings 8528.72.90 and 8528.73.90, whether or not combined in the same housing with radio-broadcasting receivers or sound or video recording or reproducing apparatus”
· Amendment and renumbering of Rebate items 316.17/00.00/03.00, as follows: Renumbered to 316.17/00.00/06.00 – “Goods of any description (excluding goods of heading 85.28, mounted or populated circuit boards and other electric conductors, for a voltage not exceeding 1 000 V, fitted with conductors classifiable in tariff subheading 8544.42), used in the manufacture of reception apparatus for television not designed to incorporate a video display or screen, classifiable in tariff subheading 8528.71, at such times, in such quantities and subject to such conditions as the International Trade Administration Commission may allow by specific permit”
The application was lodged by Apex Cordset Technologies (Pty) Ltd who reasoned that:
· Apex Cordset Technologies (Pty) Ltd is a manufacturer, supplier and exporter of a wide range of cables and cordsets for use in various electrical appliances and as such a significant contributor to the Southern African Customs Union (SACU) economy;
· Over the years the company has increasingly come under pressure from low-priced imported insulated electrical cables/conductors (subject products) originating from the People’s Republic of China (China). Sales and production volumes have, as a result, declined over the years;
· The company has discovered that the subject products are imported from China through rebates that were created in the past which have had unintended consequences through market distortion;
· Although these rebates were created as part of duty relief on materials and components for the manufacture of several products including monitors and set-top boxes, there is sufficient domestic capacity to meet local demand of these electric cables;
· The rebates therefore serve no purpose when there is a local producer and the withdrawal from rebate of these materials is needed in order to level the playing field and ensure long-term viability of the domestic cable industry manufacturing the subject products; and
· This will help support the growth and development of our domestic industry, create new jobs and stimulate economic growth within the country.