According to the ITAC report, AMRAS is the only known manufacturer of mainline rail products in the Southern African Customs Union (SACU) region. The company operates a rail manufacturing facility in Emalahleni, Mpumalanga, which it acquired and revived in 2022.
The International Trade Administration Commission of South Africa (ITAC) has recommended that the general rate of customs duty on imported rails be increased from 5% to 10% ad valorem, a move aimed at supporting domestic rail manufacturing and strengthening South Africa’s steel value chain.
The recommendation is contained in the latest ITAC report, which considered an application by ArcelorMittal Rail and Structures (AMRAS), a division of ArcelorMittal South Africa (AMSA).
AMRAS requested that the tariff on rails be raised to the World Trade Organization-bound rate of 10%.
One of the reasons AMRAS gave for the duty increase application was that their rail production plant was operating at significantly low capacity and that import replacement would enable the company to reach sustainable operating levels, reduce marginal cost of production and enhance overall competitiveness.
