REAL-LIFE SCENARIO 2 - STEEL INDUSTRY: The ANC, AMSA, ITAC and Duties: The Four Horsemen of the downstream apocalypse.

How do the import duties affect your business?

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A REAL-LIFE SCENARIO OF AN EMPLOYER IN THE STEEL DOWNSTREAM

Dear employer

• In May 2025, a company, DEF Pty Ltd, placed an order to import raw steel material to be used in its manufacturing processes.

• During the course of July 2025, whilst the consignment was in transit, ITAC announced an import duty of 52% effective immediately.

• This means that upon the arrival of this company’s products at the relevant South African port, the company had to pay the 52% duty, instead of the 10% it budgeted for.

• The company is not in a financial position to pay the increased duty.

• Consequently, until the duty is paid, the product is being retained in a bonded warehouse, continuously accruing storage costs.

• The company has been advised by the shipping agency to find an alternative destination to South Africa, to resell this consignment, to avoid the cost of the duty and not suffer a total loss.

• In the meantime, the company does not have the stock it needs to continue operations and AMSA can only provide it with the required stock in eight weeks’ time, at an increased price.

What an outrageous dilemma caused by the “protection” of a dying AMSA.

For more information

NEASA Media Department

media@neasa.co.za

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