ITAC has taken a decisive step to bolster domestic manufacturing by recommending an increase in customs duty on specific polymer-based pipes and hoses. At the heart of this decision lies Riifo Southern Africa (Pty) Ltd — the sole producer of these specialised products within the Southern African Customs Union (SACU).
Despite steady growth in production and sales, Riifo has faced persistent challenges: underutilised capacity, rising costs, and sustained losses, all compounded by cheaper imports.
The Commission’s investigation revealed that:
- Riifo is the only known local manufacturer of the product.
- Production volumes rose, but capacity remained underused.
- Costs climbed, while profitability stayed negative.
- Imported alternatives continued to undercut local prices.
Pipes with and without fittings are essentially the same product, meaning differing duty rates could encourage circumvention. Raising the duty to 20% would strengthen protection for local value addition.
The Recommendation:
Customs duty on these products will rise from 15% to 20% ad valorem, with new 8-digit tariff subheadings created for clarity. This adjustment applies to:
- Seamless, multi-layered pipes without fittings (tariff subheading 3917.39.20).
- Seamless, multi-layered pipes with fittings (tariff subheading 3917.39.90).
This move is designed not only to level the playing field against imports but also to unlock the potential of South Africa’s manufacturing sector. The duty structure will be reviewed after three years to assess its impact across the industry value chain
Full details of the final determinations and recommendations are on Report 760.
ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA