The International Trade Administration Commission of South Africa (Itac) has recommended the imposition of safeguard measures on imports of corrosion resistant steel coil products for a period of three years.

It recommended to Trade, Industry and Competition Minister Parks Tau that duties of 52.34% be imposed for the first year, 37.34% for the second year and 22.34% during the third year, effective June 12.

Itac concluded its investigation into increased imports of corrosion resistant steel coil, which examined imports of certain flat-rolled steel products, commonly referred to as corrosion resistant steel coil.

Its investigation indicated that unforeseen developments, as contemplated under the General Agreement on Tariffs and Trade (GATT) 1994, occurred and the effects of the obligations incurred under GATT 1994 contributed to a significant increase in imports of corrosion resistant steel coil.

The surge in imports has caused serious injury to the Southern African Customs Union (Sacu) industry, Itac says.

The commission further recommended the extension of a rebate to include the rebating of safeguard duties on specific products that are not manufactured domestically.

This measure is intended to ensure that industries reliant on these inputs are not adversely affected where local supply is unavailable.

To safeguard the interests of downstream industries, the commission determined that pricing behaviour will be closely monitored following the imposition of the safeguard measures.

This step is aimed at preventing any unwarranted price increases that could negatively impact downstream users.

The implementation of the definitive safeguard duty seeks to provide temporary relief to the Sacu industry, enabling it to adjust to increased import competition, while maintaining a balanced approach that considers the needs of downstream industries and international trade obligations.

The safeguard measures apply to imports from all countries, except developing countries from which imports do not exceed 3% of total imports, Itac says.