New application made to Itac to raise duty on imported medium-density fibreboard to 15%
Trade advisory organisation the International Trade Administration Commission of South Africa (Itac) has received an application to increase the customs duty on medium-density fibreboard (MDF) to 15% ad valorem from 10% ad valorem, says trade consulting firm XA Global Trade Advisors.
Interested parties have until February 13 to submit representations to Itac.
The application follows a sharp increase in imports, particularly from China. The company making the application states that Chinese imports rose by 114% between 2021 and 2023 and now account for 32% of total imports.
Additionally, the applicant claims that import prices are significantly below local production costs, which raises concerns about under-declaration and price undercutting.
The duty increase is meant to protect local investment, including an expansion of one of the company's plants.
The application is also intended to support job creation and sustain domestic MDF production for the Southern African Customs Union and African Continental Free Trade Area markets, says XA Global Trade.
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