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August 14, 2024
Safeguard Duties
Whether you are a domestic manufacturer in need of protection, or an importer, exporter we help you navigate the complexities of safeguard measures.
The use of the safeguard instrument to protect local manufacturers is on the rise as many investigations have been initiated by ITAC and duties successfully imposed.
Safeguard measures protect a specific domestic industry from a surge in imports of any product.
The surge should be causing or threatening to cause, serious injury to the local industry.
Safeguards are an emergency measure to protect domestic industries.
A safeguard duty is imposed, if import volumes are: sharp, due to unforeseen developments, causing or threatening to cause serious injury to the SACU industry.
— The investigation Process
— Evaluation of application
A team of ITAC investigators evaluates submitted safeguard applications to determine if there is a case. Applications are prepared in a specific format and require specific information.
The investigation team will check if the application meets ITAC requirements. Applications that do not meet the requirements are sent back to the applicant for correction.
—Verification and initiation of investigation
Once the application is accepted as properly documented, the investigation team will verify the information provided against the applicant’s company records. The purpose of verification is for ITAC to satisfy itself that the provided information is reasonable and reliable.
Unverifiable information means the matter will not proceed and the application will be rejected. Assuming verification is done to the satisfaction of ITAC, the safeguard investigation is formally initiated. This is done by publishing the matter in the government gazette.
— Filing of submissions by importers and their foreign suppliers or exporters
Importers and exporters have 30 days to make submissions to ITAC. However, an extension can be applied for if good reasons can be provided. It is vital that the provided information is accurately substantiated.
— The decision
A preliminary decision is first made. The decision can be to impose preliminary safeguard duties while the investigation continues. Preliminary duties will be in place for a maximum of 200 days.
A final decision is taken when ITAC has completed its investigation. The preliminary duties may be converted to final duties. Alternatively, the final duties may be lower or higher than the preliminary duties.
Safeguard duties are imposed on imports from all countries, including imports from Free Trade Agreement countries like the EU. However, developing and least developed countries are mostly exempted from safeguard duties
Is your locally manufactured product under pressure from competing imported products? With significant expertise in this area, let our expert consultants help you with a safeguard application and guide you throughout the process.