South Africa Raises Ad Valorem Tariff to React to the Inflow of Asian Fasteners

As Asian fasteners swarm in, South African companies has seen the impact and called for International Trade Administration Commission Of South Africa to raise import tariff on those products. The commission decided to raise the Ad Valorem Tariff from 10% to 20% to propel domestic fastener capacity. (Ad Valorem Tariff: Duty or other charges levied on an item on the basis of its value and not on the basis of its quantity, size, weight, or other factor.)

The commission will re-evaluate the overall condition of the fastener industry and adjust tariff every 3 years, based on the production, employment, and investment status. During 2010 to 2012, South African fastener production dropped 18%. Since 2008, substantial amount of bolts, nuts, and screws have been imported to South Africa, and the number of local employees has dropped 22%.