On 18 September 2015 Itac announced an application for the proposed reduction in the ‘General’ rate of customs duty on other canned mussels in airtight metal containers would be through the deletion of tariff subheading 1605.53.20 and the creation of two new tariff subheadings for ‘smoked’ and ‘other’ mussels in airtight metal containers under tariff subheading 1605.53.
The application was lodged by M&L Distributors (Pty) Ltd on behalf of Shoprite Checkers (Pty) Ltd, Pick n Pay (Pty) Ltd and Spar South Africa (Pty) Ltd, reasoning that (i) There is no local production of canned smoked mussels and the duty brings additional hardship on the smoked mussel consumer; (ii) The increase in the rate of customs duty has the effect of increasing the retail price of smoked canned mussels. The average selling price will increase by approximately 27% per unit including Value-added Tax (VAT), thus making the subject product an expensive protein; and (iii) The tariff amendment for an increase of duties from 5.5c/kg to 25% ad valorem was incorrect in its application.
Comment is due by 16 October 2015.
