Dunlop Belting Products (Pty) Ltd, herein referred to as Dunlop or the applicant applied for the creation of a temporary rebate provision for the importation of steel cord classifiable under tariff subheading 7312.10.40. The subject product is used in the manufacture of steel conveyor belting as reinforcing material.
The International Trade Administration Commission (“ITAC” or the “Commission”) considered the application in light of the information at its disposal. In particular, the Commission the following factors into account.
• There are currently no known manufacturers of steel cord of a kind used in the manufacture of steel cord reinforced conveyor belting in the SACU region;
• As such, the applicable customs duty has an unnecessary cost-raising effect on the domestic industry manufacturing steel cord-reinforced conveyor belts;
• The duty relief, through the creation of a temporary rebate provision, will result in a reduction in production cost and improved competitive position for the domestic industry manufacturing steel conveyor belts;
• The applicant committed to increasing production and increasing the value of investment in plant, machinery and buildings. Furthermore, the applicant commits to increasing employment in the three years following tariff support; and
• The guidelines, rules and conditions have been developed to ensure the effective and efficient administration of the rebate provision with safeguard measures to minimise misuse and abuse as well as to avoid unintended consequences. The Commission concluded that the creation of a temporary rebate provision, if supported will enable the domestic industry to achieve cost-savings in the manufacture steel cord-reinforced conveyor belting.
This should enhance the competitive position of the domestic industry vis-à-vis imports of the similar product into the SACU market. In addition, tariff support would result in the retention of existing jobs and the creation of additional jobs within the steel sector.
The temporary rebate provision will be made available subject to a rebate permit issued at such times, in such quantities and subject to such conditions as the International Trade Administration Commission may allow by specific permit. In light of the foregoing, the Commission recommended that the temporary rebate provision for the importation of steel cord used in the manufacture of steel conveyor belting as reinforcing material be created.
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ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA