ITAC recommends duty rebate for agricultural, forestry tyres

Source: Charles Criscuolo via Pexels

The tyres, which have rim sizes smaller than 91cm and fall under tariff code 4011.70.10, are primarily used on tractors and harvesters.

ITAC considered an application from Tubestone and found that there are no manufacturers of the specified tyres in the Southern African Customs Union (SACU) region.

The Commission said the existing duty increases the cost of importing the tyres, negatively affecting the agricultural and forestry sectors.

The recommended rebate would allow importers to waive ordinary customs duties on qualifying tyres, subject to an ITAC permit.

As part of the permit conditions, applicants will be required to demonstrate how accessing the rebate will result in price reductions. Applicants will also be subject to regular verification to ensure the rebate does not undermine the local tyre manufacturing sector.

The rebate provision does not cover anti-dumping, safeguard or countervailing duties.

Full details of ITAC's final determinations and recommendations are contained in Report 769.