Recently the International Trade Administration Commission of South Africa (“ITAC”) received an application to raise the import duty on a range of garments and textiles. The application requests ITAC to raise the import duty on 127 tariff lines relating to garments to South Africa’s bound tariff levels at the World Trade Organisation (“WTO”). A bound tariff level is the absolute maximum duty a country may charge on imported products and in this case South Africa’s bound tariff level is 45%.

On the 4th of September 2009, ITAC made its recommendations on the application for the increase in these tariff duties, although the amendments were only published in the Government Gazette of 9 October 2009.

In terms of the application, the South African Clothing and Textile Workers’ Union (“SACTWU”) applied to have the customs duty increased on 127 tariff lines from the currently applied rate of 40% to the bound rate of 45%. In addition an increase from 20% to 45% was requested for three tariff lines related to hosiery. ITAC recommended that these tariff lines be increased to the requested bound levels, in other words the 45%. The Minister of Finance accepted ITAC’s recommendations and thus the tariffs applicable to these 127 tariff lines have been increased to 45% with effect from 9 October 2009.

Should you require any further information on this tariff amendment or on tariff amendments in general, kindly do not hesitate to contact Rian Geldenhuys.

© Trade Law Chambers 2009