US Section 301 Forced Labour Tariff: SA Seeks Exemption

Posted 12 July 2026 Written by Acts Online
Category Trade & Industry and Competition

Brought to you by SAnews: The South African government has formally requested an exemption from a proposed 12.5% tariff under the United States Section 301 Investigations on Forced Labour, citing domestic enforcement mechanisms under the Customs and Excise Act and the International Trade Administration Act.

During a public hearing hosted by the Office of the United States Trade Representative (USTR) in Washington DC, a South African delegation led by the Department of Trade, Industry and Competition (dtic) presented oral testimony regarding the Section 301 Investigations of Acts, Policies, and Practices of 60 Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labour. The delegation highlighted South Africa’s alignment with International Labour Organization (ILO) fundamental conventions and its domestic statutory powers to police supply chains.

Specifically, the South African submission relied on the following statutory provisions to demonstrate enforcement capacity:

  • Section 113 of the Customs and Excise Act, No. 91 of 1964: This section explicitly prohibits the importation of prison-made goods and empowers the South African Revenue Service (SARS) to stop, detain, and seize prohibited goods at the border.
  • International Trade Administration Act, No. 71 of 2002: This Act empowers the National Executive to control or prohibit the importation of specific classes of goods.

Should a blanket country exemption be denied, South Africa proposed an alternative product-specific exemption for key export sectors where there is no evidence of forced labour inputs. The targeted export categories include:

  • Platinum-group and precious metals;
  • Vehicles, automotive components, and catamarans; and
  • Agricultural products, including citrus, seafood, wine, and nuts.

Stakeholders wishing to file representations on these investigations must submit their post-hearing submissions to the USTR by 16 July 2026. Information on the submission process is available on the official Office of the United States Trade Representative website.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; however, professional advisors must monitor trade law developments to advise on supply chain compliance.
  • For your business: South African exporters to the US must review their supply chains to ensure they can document compliance with forced labour prohibitions, mitigating the risk of a potential 12.5% tariff.
  • For your clients: Clients in the automotive, mining, agriculture, and maritime sectors exporting to the US should prepare supporting documentation ahead of the 16 July 2026 USTR submission deadline to verify that their production inputs are free from forced labour.

Originally published at https://www.sanews.gov.za/south-africa/sa-appeals-exemption-forced-labour-tariff

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