Government extends Safeguard duties on threaded fasteners of iron or steel

Safeguard duties, also known as safeguard tariffs or safeguard measures, are a form of trade protection utilized by governments to provide temporary relief to domestic industries facing a surge in imports that may cause serious injury or harm to the domestic industry. These measures are allowed under the rules of the World Trade Organization (WTO) and other international trade agreements.

The primary purpose of safeguard duties is to protect domestic industries from sudden and unforeseen import surges that could lead to significant economic damage, such as job losses, declining production, and financial instability.

On 24 July the South African Revenue Service (SARS) announced the extension of a safeguard duty 48,04% on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft), classifiable in subheadings 7318.15.41, 7318.15.42 and 7318.16.30, in Part 3 of Schedule No.2 to the Customs and Excise Act, 1964, through the insertion of Safeguard Items 260.03/7318.15.41/01.08; 260.03/7318.15.42/01.08 and 260.03/7318.16.30/01.08 on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft).

The reasoning is contained in the International Trade Administration Commission of South Africa (ITAC) Report No.715. ITAC Report-No-715.pdf

The safeguard duty will be implemented as follows – 48,04%% from 24 July 2023 up to and including 23 July 2024, to 46,04% from 24 July 2024 up to and including 23 July 2025, and 44,04% from 24 July 2025 up to and including 23 July 2026.

The Notices are accessible at: Notice R.3696 Notice R.3697 Notice R.3698

SAISI welcomes the extension of safeguard duties, we understand that the decision was made after careful consideration. The imposition of safeguard duties is a positive step towards creating a level playing field and ensuring fair competition.

We commend the government’s commitment to fostering a sustainable and competitive environment for the domestic manufacturers. These safeguard measures will undoubtedly strengthen the position of local fastener producers and encourage investments in innovation and technology.