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AL CIRCLE

ITAC recommends maintaining 15% duty on aluminium rolled products to support the local industry

EDITED BY : 1MINS READ

The International Trade Administration Commission of South Africa (ITAC) has recommended that the existing 15 per cent ad valorem customs duties on aluminium rolled products should remain in place. The decision aims to continue protecting domestic manufacturing and preserving employment opportunities.

Aluminium flat rolled products

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ITAC initiated a review of these duties in February 2023, covering aluminium plates, coils, sheets, can stock, strips and foil, key inputs across various sectors including automotive, marine, construction, electronics, solar energy, packaging and white goods.

The commission assessed the impact of tariff support and ensured that the existing duty structure was not causing unintended consequences. Their findings highlighted continued challenges in domestic manufacturing, such as high production costs compared to alternatives, an ongoing influx of low-priced imports, and a volatile trading environment both locally and globally.

ITAC also evaluated the effect of these duties on downstream industries, many of which have had to transfer increased costs to end consumers. As a result, the commission has recommended reviewing the rebate structure on aluminium rolled products to enhance administrative efficiency. Additionally, it has suggested reassessing duties on downstream aluminium products to provide further support to segments struggling to compete with imported alternatives.

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EDITED BY : 1MINS READ

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