On 24 February 2023 ITAC initiated a review of the customs duties applicable to aluminium rolled products (aluminium plates, coils, sheets, can stock, strips and foil). The products are used in the automotive, marine, construction, general engineering, electronics, energy (solar energy), white goods and packaging industries.
A review of the duty structure is conducted wherein the Commission wants to assess the performance of the industry following tariff support and to ascertain that the existing duty structure does not have unintended consequences to the domestic industry.
The Commission found that there has been a continuation of the challenges that faced the domestic manufacturing industry, including high manufacturing costs relative to alternative substitutes; continuation of low-priced imports; as well as a generally volatile global and domestic trading environment. The Commission also considered the effects the duties were having on the downstream manufacturing industry, which had been forced to pass on the increased costs to final consumers.
The Commission concluded that the existing duties served to protect domestic manufacturing and employment opportunities and recommended that the duties be maintained at the current level of 15% ad valorem.
However, the Commission further recommended that the rebate structure on aluminium rolled products be reviewed to improve the efficiencies in the administration of the provision and that the duty structure applicable to downstream aluminium products also be reviewed with a view of offering additional support to downstream industries that had become uncompetitive against imported similar products.
Please refer to Report 725 for full details.
ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA