Hex Head Set Screw Tariff Determination - 42.09%!!!

Posted by Alexander Daniel on

To our valued customers,

We are writing you this letter to bring you up to date with the first of many protentional threats to our fasteners industry.

On the 3rd of August 2018, ITAC (International Trade Administration Commission) announced a 42.09% provisional safeguard duty on all imported hexagon head set screws.

This duty is in addition to the existing 30% duty already in place on hexagon head set screws. Subsequently, the total duty on hexagon head set screws is now at a 72.09% increase on duties from our suppliers.

This newly imposed 42.09% safeguard duty is a result of an application made by SAFMA (South African Fasteners Manufactures Association), which represents the following local manufacturers:

  • CBC
  • TPN

Although the new safeguard duty of 42.09% is extremely high, it is actually lower than SAFMA’s proposed safeguard duty of 88% for hexagon head set screws.


SAFMA claims that they have the manufacturing capacity, to make the entire world-wide range of hexagon head set screws to meet the South African industry requirements, including;

  • Quality
  • Delivery times
  • Service after sales
  • After sales service, including guarantees and warrantees and technical training to customers.

ITAC’s safeguard duty calculations now facilitate SAFMA members enjoying a 10% profit margin. This profit margin is lower than SAFM’s requested profit margin of 20%.

Profit Margin = Net Income/Sales

Currently no distributors within the industry are earning close to a 10% profit margin. The requested 20% profit margin shows the greed of the SAFMA members.

SAFMA members have launched this safeguard duty to earn excess profits at your (and our) expense.


Through our efforts at NSS Fasteners and in collaboration with the FDA (Fasteners Distributors Association) we have managed to curtail this initial 88% safeguard duty to 42.09% effective the 3rd of August 2018.
Please note that this is a provisional safeguard duty, which the applicants are still seeking to increase further.

There is a risk that the finalized safeguard duties will be higher than the provisional safeguard duties in place until the 19th of February 2019.

The introduction of this safeguard duty means we are being forced to increase the price of imported hexagon head set screws by 42.09%, with immediate effect.

If we fail to fight the safeguard duty, you can expect that the cost of hexagon head set screws will increase dramatically for the next 3 to 5 years.
This is also just the first of many expected applications from SAFMA.
In the future, SAFMA has documented they will be applying for similar safeguard duties on bolts, nuts, and rods.

ITAC has invited comments from all interested parties in the investigation prior to making its final determination and recommendation to the Minister of Trade and Industry.

We are urging all our customers to formally make comments to the ITAC commission to dispute the safeguard duty before the safeguard duty is finalized.
We request that you provide feedback with your experiences from business with SAFMA members based on the following:

  • Quality
  • Lead times
  • Price of stock
  • Availability of stock
  • Customer service

The ITAC commission is only taking comments from interested parties until 17August 2018.

Any comments to the Commission’s preliminary determination must be submitted in writing to the Senior Manager: Trade Remedies 1 on or before 15:00 on 17 August 2018.
Comments submitted late will not be accepted without prior consent from the

You can submit your comments and objection to the following ITAC Senior Manager: Trade Remedies 1, assigned to the case:

Mr Zuko Ntsangani MS Selma Takacs
ZNtsangani@itac.org.za STakacs@itac.org.za
+27 12 394 3662 
+27 12 394 3696

We hope that with your help, we can fight these unjustified safeguard duties.
Time is of the essence to provide feedback to ITAC.

Should you require a copy of the report – please contact marketing@nssfasteners.co.za


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