Itac recommends temporary duty waiver for stainless steel tubing
The International Trade Administration Commission of South Africa (Itac) has recommended that a temporary rebate provision be created for the importation of stainless steel tubing used in the manufacture and maintenance of processing plants for the hygienic and liquid food industries.
Equipment supplier Guth South Africa applied for the creation of a temporary rebate provision for the importation of stainless steel tubing used in the manufacture and maintenance of processing plants for the hygienic and liquid food industries.
It is also required to meet strict international standards for material, surface finish, dimensions and tolerances, to ensure quality for use in sanitary applications such as dairy and beverage processing.
Itac found that there are currently no known local manufacturers of stainless steel tubing that meet the required hygienic and food-grade specifications in the Southern African Customs Union (Sacu).
Moreover, there are no prospects of manufacturing the subject product locally at the correct specifications owing to cost implications.
The commission concluded that the creation of the rebate provision would not negatively affect the domestic industry manufacturing stainless steel tubing, given that it does not manufacture tubing as per the required sanitary specifications.
Ensuring hygiene standards in the food and beverage industries is essential for safeguarding public health. As such, the Commission found little industrial policy rationale for the continued imposition of the duty on the subject product.
The recommended rebate provision will be made subject to an Itac permit issued in terms of guidelines, rules and conditions, provided the products are not available in the Sacu market.
A rebate facility provides a duty waiver for domestic industries not to pay full or partial customs duties on a specific product.
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