The International Trade Administration Commission of South Africa (ITAC) has called for comment on the proposed reduction in the ‘General’ rate of customs duty on canned minced anchovies, classifiable under tariff subheading 1604.20.30, from 25 per cent ad valorem to a specific duty of 6c/kg, through the creation of an additional 8-digit tariff line for the subject product, which would read - “Minced, in airtight metal containers for human consumption”. Comment is due by 24 April 2023.
The application was lodged by Unique Selling Points (Namibia) CC who reasoned that:
- It would provide people with limited financial resources access to a low-cost source of protein.
- The product is a low-cost fish product which is rich in protein and other nutrients. The product was initially produced in Peru to provide local people with limited financial resources with a
- high-quality low-priced source of protein. This is the Applicant’s exact intention for the product in the Southern African Customs Union (SACU).
- The target customer for this product is the lower-income citizens of Southern Africa who have limited disposable income available to sustain themselves. This product can provide them with much-needed protein and omega at a low price.
- Other similar canned fish products do not attract the punitive 25% duty currently applicable to this product. This product will not compete with locally produced products at all. It should be compared to the tuna product variants, which are all attracting duties at 6c/kg and are also not produced in South Africa or SACU and are imported in their totality. The same applies to the canned minced anchovies, but the canned minced anchovies could be available to local consumers at a much-reduced price compared to the other options. If the same duty is applied to the minced anchovies, it should present the SACU consumers with a more affordable option in this category.
- Reducing the 25% duty to the same level as for other canned fish products will have no negative impact on any labour structure; as a matter of fact, it may well create a new line of product with distribution to all outlets which could indeed create additional employment.
