SEIFSA encourages affected members to participate in review of customs duty on downstream steel products

The Department of Trade and Industry recently announced tariff protection measures to protect the basic ferrous industry in South Africa in a desperate measure to prevent the loss of another 30 000 to 50 000 in the metals and engineering sector. These measures brought with them downstream cost implications impacting the sector’s sub-industries, which need further protection.

Since the announcement, key industry players embarked on efforts to strike a balance between upstream and downstream producers regarding protection. These stakeholders included the Departments of Trade and Industry, the Department of Economic Development, ITAC and the business organisations in the sector.

Efforts for protection of the various parts of the industry are necessary since there are some metals and engineering products that are even further down the value chain, especially products with more added value. These have been under significant threat of imports, although they have less protection than the basic metals upstream.

To achieve this, ITAC has given notice, as per the Government Gazette of 22 July, for the review of the general rate of customs duty on various downstream steel products. These include steel products classifiable under tariff headings 72.17, 73.07, 73.08, 73.12, 73.18, 73.21, 83.02, 84.18, 84.26, 84.50, 84.51, 85.04, 86.01, 86.07, 86.09 and 94.06. The application process has also been simplified.

ITAC conducted a very detailed investigation of each one of these tariff headings to determine the scope for tariff increases and it is ready to support the sector wherever it can.

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JOHANNESBURG, 30 SEPTEMBER 2015 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has called on the Government to extend the protection of the metals and engineering sector throughout the value chain.

SEIFSA, which was part of the campaign for a 10% tariff to be imposed on imported steel, has warned that extra caution must be taken to ensure that downstream steel producers are not negatively affected. The tariff was recently imposed by the International Trade Advisory Commission.

Press Release – 2015/08/28: SEIFSA WELCOMES GOVERNMENT’S DECISION TO IMPOSE A 10% TARIFF ON IMPPORTED STEEL

JOHANNESBURG, 28 AUGUST 2015 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the Government’s decision to impose a 10% tariff on cheap, imported steel.

Speaking after the release of a statement by the Department of Trade and Industry today, SEIFSA Chief Economist Henk Langenhoven said that the Federation was very pleased with Trade and Industry Minister’s undertaking to impose a tariff on imported steel that made it impossible for local manufacturers to compete.

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