Chicken Tariff Application In a Government Gazette dated April 12, 2013 released with the Government Gazettes of April 26, 2013 the International Trade Administration Commission of South Africa (Itac) published a notice in respect of the increase in the rates of customs duty on frozen chicken meat. The application pertains to five (5) tariff subheadings 0207.12.20, 0207.12.90, 0207.14.10, 0207.14.20, and 0207.14.90 requesting the imposition of either a specific rate of customs duty or a formula (rated) rate of customs duty to the bound rate. The proposal is for the increase in the rate of customs duty on two (2) tariff subheadings 0207.12.20 and 0201.12.90 to a specific customs duty which is capped, and three (3) tariff subheadings 0207.14.10, 0207.14.20, and 0207.14.90 to a formula or rated duty customs duty which is capped. A formula duty is a duty that consists of two components, an ad valorem duty, and a specific duty. A formula duty is by definition prohibitive (restrictive) duty. The application of the customs duty is that both the specific customs duty and specific customs duty are calculated, with the one that yields the highest customs duty being applied. Carcasses (excluding necks with offal) with all cuts (e.g. thighs, wings, legs and breasts removed), tariff subheading 0207.12.20, is presently liable for a rate of customs duty of 27%, which is proposed to be increased to 991c/kg with a maximum of 82%. Other: whole bird, tariff subheading 0207.12.90, is presently liable for a rate of customs duty of 27%, which is proposed to be increased to 1111c/kg with a maximum of 82%. Boneless cuts, tariff subheading 0207.14.10, is presently 5%, which is proposed to be 12% or 220c/kg with a maximum of 82%. Offal, tariff subheading 0207.14.20, is presently liable for a rate of customs duty of 27%, which is proposed to be 67% or 335c/kg with a maximum of 82%. Other: bone-in portions, tariff subheading 0207.14.90, is presently 220c/kg, which is proposed to be increased to 56% or 653c/kg with a maximum of 82%. The application was lodged by the South African Poultry Association (SAPA) which reasoned that (i) The South African producers as well as producers from Botswana, Lesotho, Namibia and Swaziland (BLNS) countries are distressed and their survival is threatened mainly by a large and rapid increase in the volume of imports of extremely low-priced frozen poultry meat. (ii) Some small and medium sized producers have been forced to shut down, while those remain face the imminent threat of closure, certain large producers have reduced their workforce and forecast further job losses. Should the current situation persist, the large producers will be forced to drastically scale back operations and possibly close some. (iii) Low priced imports, negatively impact on further investment in the poultry industry and associated industries, affecting both commercial and emerging broiler producers, the Southern African Customs Union (SACU) production capacity and compromise SACU food security. Comments are due by May 3, 2013. Duty Calls Watch List On May 17, 2013 comment is due in respect of (i) the proposed increase in the rate of customs duty on polyethylene terephthalates, (ii) the proposed creation for rebate items for the manufacture of backed suede, and upholstered furniture, (iii) The proposed creation of a rebate item for palm oil. On May 27, 2013 the initiation of an interim review of the anti-dumping duties on ropes and cables manufactured by Casar Drahtseilwerk Saar Gmbh and originating in or imported from Germany.
