On 19 June 2020 the International Trade Administration Commission of South Africa (“ITAC”) initiated a safeguard investigation into the increased imports of U, I, H, L and T sections of iron or non-alloy steel , not further worked than hot-rolled, hot-drawn or extruded, of a height of 80 mm or more and other angles, shapes and sections of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded.

The subject product is imported into the South African Customs Union (SACU) under the following tariff headings: 7216.31, 7216.32, 7216.33, 7216.40, 7216.50 and 7228.70.

The Application was lodged by ArcelorMittal South Africa (the only remaining manufacturer) as well as Evraz Highveld Steel and Vanadium Corporation and Highveld Structural Mill. ITAC has found that there is prima facie evidence that there has been unforeseen developments that has led to a recent, sharp and sudden surge of imports that is significant enough to cause serious injury to the local industry.

Should safeguard measures be imposed, such measures may either take the form of tariffs which is likely to exceed the World Trade Organisation’s bound rates or it could take the form of quotas which could severely limit the import of the subject products into SACU. As safeguard measures are an emergency trade remedy, interested parties have 20 days from 19 June (i.e. until 9 July 2020) to submit comments to ITAC either in support of or in opposition to the application.

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Rian Geldenhuys
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