South Africa has moved to strengthen trade protection for its steel industry by raising import duties on a range of steel products, following earlier calls from the country’s International Trade Administration Commission (ITAC) for emergency measures to support local producers. Under a government notice dated May 15, import duties on certain steel products have been raised to between 10 percent and 30 percent. The revised duties cover products including flat-rolled iron or non-alloy steel, as well as bars, rods, tubes and pipes. Before the latest adjustment, South Africa applied tariffs of zero to up to 15 percent on these products.
The duty increase comes at a time when South Africa’s steel sector continues to face weak demand and growing import competition. Producers including ArcelorMittal South Africa have shut some mills, while rising imports, led by China, have added pressure on the domestic market.
Last year, ITAC recommended that the government take emergency action to defend the local steel sector, proposing import duties starting at 10 percent on steel products. Commenting on the latest decision, ITAC Chief Commissioner Ayabonga Cawe said the commission hopes the measure will provide the local industry with the necessary space to adjust in a way that allows producers to invest in their capabilities.
Cawe also said South Africa adjusted rebate facilities for selected steel users, with SARS introducing or substituting full-duty rebate provisions for products including certain semi-finished steel, coated flat steel used in appliances and other downstream applications, H sections, rails, tubes, pipes and fittings, subject in most cases to ITAC permits and market availability conditions.
The latest tariff adjustment follows separate trade action taken in March, when South Africa imposed steep import duties on flat rolled steel product imports from China, Japan and Taiwan after finding evidence of dumping, as previously reported by SteelOrbis.
A non-comprehensive list of product types affected by the latest changes:
| Product group | Tariff codes | New general duty |
|---|---|---|
| Flat-rolled iron or non-alloy steel | 7210.12.20 | 10% |
| Bars and rods of iron or non-alloy steel | 7213.10 | 10% |
| Angles, shapes and sections | 7216.91, 7216.99 | 10% |
| Wire of iron or non-alloy steel | 7217.90 | 10% |
| Silicon-electrical steel flat products | 7225.11, 7225.19, 7226.11, 7226.19 | 10% |
| Other alloy flat products | 7226.20 | 10% |
| Other alloy steel bars, rods and wire | 7227.10, 7227.20, 7228.10, 7228.20, 7229.20, 7229.90.10, 7229.90.90 | 10% |
| Seamless tubes, pipes and hollow profiles | 7304.19.90, 7304.23.90, 7304.24, 7304.29.90 | 15% |
| Welded circular tubes and pipes | 7306.30.10, 7306.30.20, 7306.40, 7306.50 | 15% |
| Non-circular tubes and pipes | 7306.61.10, 7306.61.20, 7306.69.10, 7306.69.20, 7306.90 | 15% |
| Tube and pipe fittings | 7307.11.90, 7307.19.90, 7307.21.90, 7307.92.90, 7307.93.90, 7307.99.90 | 15% |
| Selected tube and pipe fittings | 7307.22.90, 7307.23.90, 7307.29.90, 7307.91.90 | 30% |
| Other articles of iron or steel | 7325.99, 7326.19, 7326.90.90 | 15% |