Abraham Maslow, of ‘hierarchy of needs’ fame, in his 1966 book, The Psychology of Science, referenced an earlier quote from Abraham Kaplan, the first philosopher to systematically examine the behavioural sciences, who wrote in his 1964 book, The Conduct of Inquiry: “If all you have is a hammer, . . . ”. Let me hold you in suspense for a while.

For the moment, let me say that this reference is quite apt, considering the investigations of the International Trade Administration Commission of South Africa (Itac) into tariff applications, specifically those for increases in the ‘General’ rates of customs duty.

This brings us to Rand York Castings’ application for a tariff increase, which appeared in the Government Gazette on January 24. The product in question could be added to the tally in the installment of this column published on January 24, titled ‘Metal fatigue’.

The application is for an “increase in the rate of customs duty” on “tube or pipe fittings (for example, couplings, elbows, sleeves) of iron or steel: cast fittings: of non-malleable cast iron”, commonly called ‘steel shoulder couplers’, classifiable under tariff subheadings 7307.11.90, 7307.19.80, and 7307.19.90.

The ‘General’ rate of customs duty for tariff subheading 7307.11.90 is free (0%), while that for 7307.19.80 is 10% ad valorem, and that for 7307.19.90 is 0%. The application is to create additional eighjt-digit subheadings to the World Trade Organisation (WTO) bound rate of 15% ad valorem. The Government Gazette notice also contains the motivation for the application.

This brings us to the ‘law of the instrument’, the ‘law of the hammer’, ‘Maslow’s hammer’, or ‘golden hammer’, depending on your preference, which asserts that “it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail”.

In considering the headline of the application, it is not an ‘application for an increase in the rate of customs duty’; it is technically an application for an increase in the ‘General’ rate of customs duty’. The obvious question that naturally arises, then, should be: Why is it not called that?

It effectively means an increase in the ‘General’ applied rate to the WTO ‘General’ bound rate, also known as the Most Favoured Nation rate. The rates of customs duty that will be unaffected by the investigation are those for the EU/UK, the European Free Trade Association, the Southern African Development Community, Mercosur (the Southern Common Market) and the African Continental Free Trade Area.

As for the motivation, the application stated that: “The downstream steel industry has been under significant distress for an extended period, primarily due to the influx of low-priced imports from China and other Asian countries. “To address this challenge, it is crucial to increase the customs duty . . . bound rate of 15%. Such an adjustment would play a vital role in enhancing the domestic industry’s price competitiveness against the relentless pressure from lower-priced imports. “This measure would not only help safeguard the current employment levels in the industry but also create an environment conducive to job growth and encourage investment in modernising plant and equipment. “The urgency of this intervention is underscored by the loss already experienced in the grooved coupling sector within the Sacu region, where import competition has led to the complete collapse of domestic manufacturing. The domestic industry now faces a similar threat in the shouldered coupling sector, as import volumes remain at unsustainable levels. Without immediate action to curb these imports, the domestic manufacturing industry risks the same fate.”

Where to begin? A few questions immediately come to mind. The obvious two: Why was a tariff application, rather than a trade remedy (dumping or safeguard) application, brought? Why did Itac allow the initiation of a tariff application when the issue is clearly of a trade remedy nature: ‘distress’, ‘influx of low-priced imports’, and ‘import volumes remain at unsustainable levels’? Is there an expectation that a tariff application is a quick-fix, considering that “without immediate action to curb these imports, the domestic manufacturing industry risks the same fate”? If so, expect to be surprised – not pleasantly surprised – as it takes a considerable amount of time. And, of course, a 5% and 10% increase would simply not be enough.