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Amisec (Pty) Ltd, trading as ARTsolar (“ARTsolar” or “applicant”) applied for an increase in the general rate of customs duty on crystalline silicon photovoltaic modules (PV modules/solar panels), classifiable under tariff subheading 8541.43, from free of duty to the WTO bound rate of 10% ad valorem, by way of creating an 8-digit tariff subheading. The International Trade Administration Commission (“ITAC” or the “Commission”) considered the application in light of all the information at its disposal. In particular, the Commission took the following factors into account: • The recent disinvestment by a number of domestic manufacturers in the local manufacturing of the subject product due to strong competition from low-priced imports; • The significant decline in the level of production, sales and capacity utilisation of the domestic industry manufacturing PV modules/solar panels; • The domestic industry has suffered a considerable loss of market share and profitability, alongside rising production costs; • Domestic manufacturers of PV modules/solar panels face substantial price disadvantages compared to imported products; • There has been a marked decrease in domestic employment and investment opportunities; and • A 10% customs duty on PV modules or solar panels will assist in protecting the remaining local manufacturers, attract new investments into the industry and encourage the deepening of the value chain through localisation of certain inputs. The Commission concluded that tariff support would enable the domestic industry manufacturing PV modules/solar panels to improve its production capacity utilisation, achieve economies of scale and create both direct and indirect jobs. The Commission recommended that the rate of customs duty on PV modules/solar panels, classifiable under tariff subheading 8541.40.10 (new 8541.43), be increased from free of duty to 10% ad valorem, by way of creating an 8-digit tariff subheading. The Commission further recommended that the proposed duty structure be reviewed after a period of three years from the date of implementation unless determined otherwise by the Commission to assess the industry’s performance.
ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA |