According to a statement by Itac on Wednesday, the application for an increase in the customs duty on crystalline silicon PV modules was brought to Itac by ARTsolar, which, along with Seraphim, are the only two remaining producers of PV panels in South Africa.
"This is after Jinko Solar, Solaire Direct, SunPower Energy Systems Southern Africa, JApowerway and SMA Inventers Manufacturers ceased local production and resorted to importing the product. The major reasons for ceasing local production included high local manufacturing costs and competition from low-priced imports," said Itac.
A report by Itac investigating the solar panel industry found that ARTsolar had to retrench a large number of employees in an effort to remain competitive - it shed 93% of its workforce (from 218 to 15). One of the objectives of the 10% duty, it said, is to protect jobs and attract investment into the local industry.
Support for the introduction of a tariff came from the "advanced manufacturing sector desk" of the department of trade, industry competition as well as the energy department, Seraphim and Jinko Solar.
"There are international examples where import tariffs or local content regulations for solar cells/modules have resulted in job losses. Other incentives offered by government must be explored to support local manufacturers instead of increasing customs duty," said opponents to the tariff in Itac's report.
