The minister of trade, industry & competition, Parks Tau, is looking to give the International Trade Administration Commission of South Africa (Itac) more teeth, which will include the watchdog investigating imports that may hurt the country’s national security interests.
The proposed amendments to the Itac Act of 2002 come at a time of a fast-evolving international trade regime with widespread trade protectionism and unilateralism.
Tau, in a government notice published on Friday, said he is seeking to “refine, update and strengthen the legislative framework governing the investigative, administrative and enforcement functions of Itac”.
He said the amendments being put on the table draw from developments in international trade practice and the need to enhance the effective administration of the act, among other considerations, which include the operational experiences of Itac over the years.
The proposed amendments are anchored on four themes: international trade-related measures, improvements to Itac’s investigative framework, enhancing the commission’s enforcement, and administrative enhancements.
“The proposed amendments introduce new provisions enabling the commission, upon direction of the minister, to investigate imports that may adversely affect the national security interests of the republic,” the government notice reads.
“Additional provisions empower the commission, upon ministerial direction, to investigate discriminatory or unreasonable foreign trade practices that adversely affect South Africa’s trade or economic interests.”
The amendments state that when conducting its investigations, Itac will consider, among other things, South Africa’s defence capabilities and interests; the economic and social stability of the country; and the security of infrastructure, including processes, systems, facilities, technologies, networks and assets.
The proposed amendments introduce new provisions enabling the commission, upon direction of the minister, to investigate imports that may adversely affect the national security interests of the republic.
— Government notice
Itac will also be tasked with taking into account the displacement of domestic products by imports and the effect on domestic investment and employment.
Other jurisdictions around the world have historically taken measures to identify imports that threaten their national security interests, such as the US through its Trade Expansion Act of 1962. The US act identifies materials critical to defence and infrastructure, with items including steel, aluminium, vehicles and automotive parts, semiconductors and specialised materials such as copper and timber falling under this category.
South Africa’s steel, automobile and sugar industries are some of those industries battered by imports.
Some of the other proposals Tau has put on the table include Itac having an express consideration of public interest factors in investigations and a “clearer statutory framework governing reciprocal commitments by applicants and authority for the minister to suspend the imposition of duties where appropriate”.
Itac, under the proposed amendments, which are going through a public consultation process, will also be allowed to consolidate related applications or matters to improve its efficiency.
Itac’s role has, over the years, been to support the government’s industrial development agenda through carefully designed tariff support and rebate mechanisms.
Tau has also proposed to give Itac more teeth and enhanced authority relating to entry, search and inspection, including procedures for handling confidential information and imposing penalties.
“New provisions provide for the disposal of seized goods where criminal proceedings are not instituted. An administrative penalty regime is introduced for specified contraventions, and criminal offences relating to illegal trade, falsified documentation and interference with investigations are expanded and clarified,” the notice reads.
Some of the proposed amendments will see Itac enjoy powers similar to its sister entity, the Competition Commission.
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