The International Trade Administration Commission of South Africa (Itac), on February 27, initiated an investigation into the extension of safeguard duties against increased imports of threaded iron and steel fasteners.

The application was lodged by the South African Fasteners Manufacturers' Association (Safma) on behalf of its members. Safma members constitute more than 80% of the total Southern African Customs Union (Sacu) industry by production volume.

Itac says it notified the World Trade Organisation (WTO), other countries, exporters and importers with a significant interest in the import and export of threaded fasteners, who, in turn, submitted their comments.

After considering all interested parties' comments received, the commission says it has made a final determination that the expiry of the safeguard duty is likely to lead to the recurrence of serious injury and that there is evidence that the Sacu industry is adjusting.

The commission says it made various recommendations to Trade, Industry and Competition Minister Parks Tau.

This includes that the safeguard duty against imports of threaded iron and steel fasteners be extended for a period of three years, excluding imports originating from developing WTO member countries that meet the requirements for the exclusion.

Itac also recommended that safeguard duties be phased down by two percentage points every 12 months over the next three years. The recommended safeguard duty for July 24 this year to July 23, 2027 is 42.04% and will be lowered to 40.04% for the period from July 24, 2027 to July 23, 2028 and to 38.04% for the period from July 24, 2028 to July 23, 2029.

Further, it recommended that the safeguard duties be listed in the "rebate item" column in Schedule No 2 to the Customs and Excise Act and, therefore, may not be imported under rebate of customs duty without the payment of safeguard duties without a recommendation from the commission, with effect from the date of the publication.