Customs duty increase on washing machines

The International Trade Administration Commission (ITAC) of South Africa increased the Customs duty on fully-automatic top-loading washing machines from free of duty to 30%. The new duty came into force on 30 March 2020.

Splitting a tariff subheading ensure a duty increase applies to a specific product or products. Besides, this makes it easier for manufacturers to monitor trade data of competing imports and exports. Nevertheless, the 30% duty increase applies to 8450.11.10 only.

The above changes follows an application by Defy Appliances and ITAC initiated an investigation on 29 March 2019.

In motivating for the duty increase, Defy Appliances stated that it intends to start manufacturing fully automatic top loader washing machines and a duty is required to protect the investment.

Most importantly, the applicant indicated the challenges experienced by domestic white goods manufacturers. These include increasing cheaper imports, high raw material costs, increasing energy, and labour costs among others.

To find out about more products on which Customs duty changes are imminent click here.

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