The general customs duty to import lead-acid batteries used to start piston engines has been increased from 15% to 30% ad valorem. The automotive industry is a crucial pillar of South Africa’s industrial landscape, contributing significantly to job creation and economic growth within the Southern African Customs Union (SACU) region. Automotive lead-acid batteries are an important component of the automotive manufacturing industry, used to power various vehicle accessories. In 2015, the International Trade Administration Commission (ITAC) considered an application to increase the customs duties from 5% to 30% ad valorem, based on the increasing flow of imported automotive lead-acid batteries into the SACU market and the difficulty that local manufacturers had in competing with the pricing of imported batteries. Despite the initial success of tariff support implemented in 2015, the industry has faced a resurgence of cheap imports and high export volumes of scrap batteries, which are believed to be undermining local production and employment within the industry. As of 19 July 2024, the customs duty to import lead-acid batteries has been increased from 15% to 30% ad valorem.
Source EY
