Creation of a rebate facility on flat - rolled products

01 Feb 2024

Webber Wentzel Attorneys, representing Steelbank Merchants (Pty) Ltd (“Steelbank” or “the applicant”), applied for the creation of a temporary rebate provision on ordinary customs and safeguard duties for the importation of certain flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled, not clad, plated or coated, classifiable under tariff subheadings 7208.26 and 7208.27.

The International Trade Administration Commission (“ITAC” or the “Commission”) considered all the relevant information available at its disposal. In particular, the Commission considered the following factors:

• The Commission found that there is currently no manufacturer of the subject products in the SACU region. As such, the applicable customs duty has a cost-raising effect in the manufacture of various automotive products.

• The duty relief, through the creation of a Schedule 4 temporary rebate facility, will result in a cost reduction for the subject products and improve the competitive position of the domestic industry manufacturing various automotive products.

• The temporary rebate provisions will be made subject to an ITAC rebate permit issued in terms of the applicable rules, guidelines, and conditions.

The Commission recommended that the temporary rebate provisions for the importation of certain flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, hot-rolled, not clad, plated or coated, classifiable under tariff subheadings 7208.26 and 7208.27 be created, as follows:

• “Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, in coils, not further worked than hot-rolled, pickled, of a thickness of 3 mm or more but less than 4,75 mm, classifiable in tariff subheading 7208.26, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; and

• Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, in coils, not further worked than hot-rolled, pickled, of a thickness of less than 3 mm, classifiable in tariff subheading 7208.27, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market.”

Please click on the link below to access the full Report 662:

Report 662

ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA