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Guth South Africa (Pty) Ltd applied for the creation of a temporary rebate provision for the importation of stainless-steel tubing. This product is used in the manufacture and maintenance of state-of-the-art processing plants for the hygienic and liquid food industries. It is also required to meet strict international standards for material, surface finish, dimensions, and tolerances, to ensure quality for use in sanitary applications such as dairy and beverage processing. ITAC found that there are currently no known local manufacturers of stainless-steel tubing, that meet the required hygienic and food-grade specifications in the Southern African Customs Union (SACU). Existing stainless-steel tubing manufactured in the SACU market does not meet the precise specifications demanded by the hygienic and liquid food industries. Furthermore, there are no prospects of manufacturing the subject product locally at the correct specifications due to cost implications. The Commission concluded that the creation of the rebate provision will not negatively affect the domestic industry manufacturing stainless steel tubing, given that it does not manufacture tubing as per the required sanitary specifications. Ensuring hygiene standards in the food and beverage industries is essential for safeguarding public health. As such, the Commission found little industrial policy rationale for the continued imposition of the duty on the subject product. A rebate facility provides a duty waiver for domestic industries not to pay full or partial customs duties on a specific product. It allows for sourcing of inputs at world competitive prices and promotes competitive pricing in the local and export markets. Please refer to Report 742 for full details.
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