Duty removal investigation on Tinplate

A Customs duty removal investigation on flat-rolled products of iron or non-alloy steel, plated or coated with tin (“tinplate”) has initiated. The subject product is classifiable under tariff subheadings 7210.11, 7210.12.10, 7210.12.90, and 7212.10.

There is quite a bit of history around this product dating back to a few years ago. The current duty  of 10% (which now needs to be removed) was imposed following an investigation initiated at the behest of the South African Iron and Steel Institute (SAISI) on behalf of ArcelorMittal South Africa Limited (AMSA), the manufacturer of the product. The investigation was initiated on 23 November 2018 and a 10% duty subsequently imposed on 16 August 2019.

Prior to the 2018 application, AMSA applied for a duty increase on the same product (tinplate) in 2015 and an investigation initiated, however, no duty imposed at the time.

Given the importance of tinplate in downstream manufacturing of cans, tins and other products, behind the scenes negotiations between AMSA and some downstream manufacturers led to AMSA withdrawing its duty increase application and the investigation ended.

Given that the current duty removal investigation has initiated on the basis that AMSA ceased manufacturing the subject product, it appears the 10% duty was imposed after harm had already been done on the product category.

Parties wishing to make submissions in this matter have 4 weeks, counting from 21 February 2020.

If you need assistance in responding to this matter, contact us on infor@tradesolutions.co.za.