Following our previous article on our work advocating on steel pipe tariffs, this article addresses a new development that is reshaping South Africa's trade policy.
On 20 August 2025, the International Trade Administration Commission of South Africa (ITAC) published its preliminary determinations under Notice 3061 of 2025, which appeared in Government Gazette No. 52347.
This notice follows ITAC's earlier request for feedback on tariffs for a wide range of pipes, tubes, fittings, and flanges (classified under Chapters 72, 73, 82 and 83), and it considers whether to impose further protective measures, including import controls, to support the local steel industry. This notice marks an important phase in the process, as ITAC has now made its position clear and provided an additional two-week window—closing in early September 2025—for more industry comments before finalising its recommendation to the Minister of Trade, Industry and Competition.
Implications of the preliminary determination
The preliminary determinations support many of the points raised in our initial objections:
- Tariffs will probably increase, but ITAC has acknowledged the need for specific relief through rebates.
- Import controls will become stricter on imports.
One of the main concerns from our clients is the possibility of relying on a single domestic pipe mill that does not have stock buffers. If that facility were to experience a period of downtime, the downstream industry would face an immediate risk of supply shortages, stock-outs, and a sharp rise in costs. These risks would also affect essential infrastructure and industrial projects where a continuous supply is absolutely necessary.
For this reason, our submissions have consistently argued that importers must continue to source from global markets to ensure stability and dependability for the domestic steel value chain.
The group of importers and distributors we represent provides vital materials for infrastructure, mining, and industrial projects across South Africa. While these businesses do not engage in downstream manufacturing, they play a key role in ensuring steady supply chains for industries that rely on specialised steel products.
Looking Ahead
While the proposed tariff increases are significant, the rebate and permit channels offer a useful opportunity for relief. For importers and distributors of specialist products—especially in the galvanised pipe segment under HS 7306—the main goal is to ensure these items are explicitly included in the final rebate schedules.
Andersen will continue to work with ITAC and SARS during the open comment period to achieve results that find a balance between protecting local producers and safeguarding downstream industries, fiscal contributions, and national infrastructure projects.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
