Extensions of safeguard duties on flat-rolled products of iron, non-alloy steel

The International Trade Administration Commission (ITAC) has initiated an investigation to extend safeguard duties on certain flat-rolled products of iron, non-alloy steel or other alloy steel (not including stainless steel), whether or not in coils (including products cut-to-length and ‘narrow strip’), not further worked than hot-rolled (hot-rolled flat), not clad, plated or coated, excluding grain-oriented silicon electrical steel.

The products are imported under tariff subheading 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.40, 7208.51, 7208.52, 7208.53, 7208.54, 7208.90, 7211.14, 7211.19, 7225.30 ,7225.40, 7225.99, 7226.91 and 7226.99.

The investigation has initiated following an application by the South African Iron & Steel Institute (SAISI) on behalf of ArcelorMittal South Africa Limited (AMSA). AMSA is the only local producer of the subject product. SAISI alleges that AMSA is experiencing serious injury as a result of imports.

Safeguard duties protect the domestic industry from a surge in imports of any product. It is an emergency measure to protect the domestic industry. Safeguard duties in South Africa are typically imposed for at most 3 years, however, Regulations enable a 6-year extension. This appears to be the first time a safeguard duty is up for a 6 year extension.

Interested parties have up to 13 August 2020 to provide comments.

Are you impacted by this investigation? Contact us on infor@tradesolutions.co.za