The International Trade Administration Commission of South Africa (Itac) on 17 March announced their second Customs tariff application for 2017, on which comment is due by 14 April 2017.
It relates to the proposed Customs duty rates adjustment of certain dairy products to the World Trade Organisation (WTO) bound rates, or as the notice states, to the “bound ceiling rates”.
In the first instance, the introduction of two 8-digit tariff subheadings under tariff heading 04.05 “Butter and other fats and oils derived from milk; dairy spreads:”, and tariff subheading 0405.20 “Dairy spreads:” namely “0405.20.** With a milk fat content of 39% or more but less than 75%” - with rates of Customs duty of 500c/kg with a maximum of 37%, with the exception of the Southern African Development Community (SADC) which is free; and “0405.20.** Other” - rates of Customs duty of 500c/kg with a maximum of 79%, with the exception of SADC which is free.
In the second instance, the adjustment of two tariff subheadings from the applied rate to the WTO bound rates. For both, the applied rates are 15% ad valorem and the bound rates 12% ad valorem. It relate to tariff subheading 3301.90.20 “Extracted oleoresins obtained from extraction of opium”, and tariff subheading 3301.90.30 “Extracted oleoresins obtained from extraction of liquorice”.
The application was lodged by The Department of Trade and Industry’s International Trade and Economic Development (ITED) division who reasoned that in light of the previous periodic reviews and changes to the Harmonised System (HS) by the Committee of the World Customs Organisation (WCO) and in terms of South Africa’s WTO obligations, it is imperative that South Africa complies with its market access commitments to the WTO and the provisions of its multilateral trade agreements. This is particularly relevant where South Africa is exceeding its WTO bound rate commitments.
This begs the question, which other tariff subheadings are in excess of South Africa’s WTO bound rate commitments?