South Africa to review duties on imported steel products
The International Trade Administration Commission of South
Africa (ITAC) has announced that it is considering reviewing duties on imported steel products.
Currently the duty on steel products under Tariff code 72 is 5%, however ITAC is planning to reduce the duty to 0% level. ITAC also expressed that the effects of the amendment in the duty structure regarding iron and steel products on the downstream industry will be examined and changes will be made accordingly.
The statement of ITAC has been announced at a time when pricing mechanism of Ispat Iscor is being discussed in the local market. Ispat Iscor's prices are found unnecessarily high by many users, while Ispat Iscor claims that its prices reflect international prices.
When the recent decision of the government becomes effective, it will please steel users in the country as they will increase their imports and will not have to face high prices in the domestic market.