Report on Trade Trends pertaining to HS codes 73239320 and 73239390

Hollowware for kitchen or table use (excluding those plated with precious metal) of stainless steel, and other.”

For the period 1999-2018

Introduction

The import tariff on 73239320 is currently at 30% and the import tariff on 73239390 (other) is at 20%.  The first code covers all pots, pans and drawn products and the ‘other’ code covers flatware, utensils etc.  We believe that some imports of drawn products are coming in under ‘other’ as the tariff is lower.  There is an opportunity to raise the ‘other’ to 30% if we have support.

Import Trends

During the period of time given above a total of 146,198 tons were imported, 115,467 tons under drawn products and 30,731 under ‘other’.  The annual imports are as follow:

In 2004, when we saw a significant increase in imports, Sassda undertook a Sunset Anti-dumping ruling on imports in these categories and this was declined by ITAC, the consequences of this are evident in the graph above.

The majority of the imports come from the following countries, China, India and Vietnam, with the bulk from China.

From the above it can be seen that the significant increase in imports in 2004 through to 2018 can be attributed to imports from China and the Chinese trend line directly follows the total trend line.

Export Trends

The increase in exports from 2001-2006 is due to large exports to the UK, the figures were:

 

2001

2002

2003

2004

2005

2006

1219.5

1575.7

1704.9

1455.2

1445.0

1268.8

Although exports to the UK continued after 2006, it was at a much reduced level.

The increase in exports from 2009 -2018 can be attributed to exports into new markets in Africa.

The following graph shows exports into Africa by country.

The key markets are Zambia, Botswana, Namibia and Nigeria.

As far as we are aware none of the local manufacturers are directly selling into the African market, but local products are finding there way into other African Countries by South African retail outlets setting up base in a particular country.

One of the biggest players in the African retail market is Shoprite holdings, under their Shoprite or Checkers brand, but they own many others, see below, although not all of these would stock hollowware their coverage on the African Continent is bigger than any other South Africa retail chain.

 

Brand Name Number of stores Countries they are in
Shoprite 613 Angola, Botswana, DRC, Ghana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Uganda, Zambia
Checkers 209 Botswana, Namibia
Usave 367 Angola, Botswana, Lesotho, Mozambique, Namibia, Nigeria, Zambia
OK Furniture & OK Power Express 436 Angola, Botswana, Lesotho, Mozambique, Namibia, Zambia
House & Home 52 Botswana, Namibia
Hungry Lion (fast food) 197 Angola, Botswana, Lesotho, Namibia, Zambia
LiquorShop 390 Lesotho, Namibia

 

Balance of trade

It is obvious from the graphic below that the balance of trade is very much in favour of imports, but with a couple of new players entering this sector of the market we must protect our South African producers, and more importantly South African jobs.

Lesley Squires, April 2019