On 04 March the World Trade Organisation (WTO) advised that South Africa had notified its Committee on Safeguards that the International Trade Administration Commission of South Africa (Itac) had initiated a safeguard investigation on threaded fasteners of iron or steel: bolt ends and screw studs, screw studding, and other hexagon nuts (excluding those of stainless steel and those identifiable for aircraft), classifiable in tariff subheadings 7318.15.41, 7318.15.42 and 7318.16.30, on which comment is due by 30 April.
The application was lodged by South African Iron and Steel Institute (Saisi) on behalf of the South African Fasteners Manufacturers' Association (Safma).
The claim is that the subject product is being imported into the Southern African Customs Union (SACU) market in such increasing quantities in absolute terms and relative to SACU production and under such conditions, to be causing serious injury to the SACU industry.
Based on the information submitted, Itac decided that Saisi had submitted prima facie information to indicate that:
• there were unforeseen developments that led to the surge in volumes of imports;
• there is a surge in volumes of imports and the surge is recent, sudden, sharp and significant enough;
• the SACU industry is suffering serious injury; and
• there is a causal link between the serious injury and the surge in volumes of imports.
The injury analysis information for bolt ends & screw studs, screw studding is submitted by T&I Chalmers Engineering (Pty) Ltd, which constitutes approximately more than 70% of the total SACU industry by production volumes. Injury analysis for other hexagon nuts is submitted by Transvaal Pressed Nuts, Bolts & Rivets (Pty) Ltd; CBC Fasteners (Pty) Ltd; and SA Bolt Manufacturers (Pty) Ltd, together representing more than 90% of the total SACU industry by production volumes.
Story by: Riaan de Lange