Industrial rebate investigation on titanium dioxide initiated

On 21 May 2021, the International Trade Administration Commission (ITAC) initiated an industrial rebate investigation on titanium dioxide used in manufacturing white masterbatch. This is the second industrial rebate investigation initiated on the same product following another industrial rebate application on titanium dioxide for use in the manufacturing of paints, varnishes, prepared driers initiated in January 2020.

An industrial rebate enables a local manufacturer to import raw materials and components without incurring an import duty. The rebate can be created if there is no local manufacturer or producer of specific raw materials or components. Alternatively, if the raw materials or components are available locally in insufficient quantities or not in the correct specification or variety.

Titanium dioxide imports attract a 10% duty although there is currently no local manufacturer. This is despite the importance of this key raw material in manufacturing. Titanium dioxide is used in the manufacturing of products such as paints, plastics, papers, inks, foods, and medicines among others.

It might be a few more years to go before local production of titanium dioxide commences. There is a R4.5 billion titanium dioxide plant investment by Nyanza Light Metals, located in Richards Bay.

Interested parties have up until 26 June 2021 to provide comments.

Want to know more or want to find out more about industrial rebates?

Contact us at infor@tradesolutions.co.za