Titanium dioxide rebate investigation initiated

rebate investigation on titanium dioxide imported under tariff subheading 3206.11 initiated on 31 January 2020. The product currently attracts a 10% import duty. There is currently no local manufacturer of titanium dioxide in South Africa. This leaves the industry with no alternative but to import the product.

Titanium dioxide is a key raw material across many manufacturing industries. The paint and coatings industry is the largest user of titanium dioxide in South Africa.

It is interesting to note that while titanium dioxide is used in manufacturing hundreds of products across different industries in South Africa, the envisaged rebate is an industrial rebate and not a temporary rebate.

If you want to know the differences and the circumstances under which these two rebates are used click here.

An industrial rebate is for manufacturers of specific products only. In this case, the titanium dioxide is for the manufacturing of paints, varnishes, prepared driers. These are classifiable in tariff headings 32.08. 32.09, 32.10, and 32.11.

Traders or companies who are not manufacturers cannot benefit from an industrial rebate. In contrast, a temporary rebate does not specify what the titanium dioxide imported under rebate will be used for. This means traders who simply import for resale to manufacturers will also benefit and possibly pass on the cost savings to manufacturers. However, whether traders will or will not pass on cost savings that emanate from import duty savings from a rebate is debatable.

Interested parties have 4 weeks (counting from 31 January) to provide comments. 

If you want to provide comments or want to know if it’s possible to get a temporary or industrial rebate created for your product, contact us at infor@tradesolutions.co.za