Rebate on styrene-butadiene rubber

A rebate investigation on styrene-butadiene rubber (SB rubber) classified under tariff subheading 4002.19.20 has initiated. SB rubber is used in tyre manufacturing.

The investigation was initiated following an application by Sumitomo Rubber. There was previously a single SACU manufacturer (Karbochem) of the subject product, however, they ceased manufacturing in 2018.

This means the only option is to source the product internationally. The current import duty imposes an additional cost on the raw material and consequently the manufactured end product.

Given that the applicant opted for a rebate rather than a duty removal, it’s possible that a local manufacturer may come online at some point.

Should you be interested in participating in the investigation, contact us on infor@tradesolutions.co.za.

For any comments to be considered by ITAC, they need to be submitted within 4 weeks counting from 24 January 2020.