The International Trade Administration Commission of South Africa (ITAC) has concluded its review of the customs duty on frozen mixed vegetables, with the Minister of Trade, Industry and Competition approving its recommendation to retain the current 10% ad valorem duty on imports classified under tariff subheading 0710.90.
The review followed a 2023 directive by the then minister after an application by Nature's Garden (Pty) Ltd to increase the duty from 10% to 37% was rejected. ITAC subsequently conducted a broader assessment of the frozen vegetable value chain, including market, trade and financial conditions.
In its report, ITAC found that while global events such as the Covid-19 pandemic and the Russia-Ukraine war had driven food price volatility, raising the duty could place additional cost pressures on consumers. The minister said the decision balanced support for the domestic agro-processing sector with the interests of consumers and downstream industries, while also providing policy certainty for investment and localisation.
Trade advisory firm XA Global Trade Advisors said the decision brought an end to a lengthy review process that began after Nature's Garden's original application to increase the duty was rejected. It noted that the minister had instructed ITAC to continue monitoring import trends, domestic production, employment and pricing developments to determine whether future changes to the duty structure might be warranted.
The minister also encouraged closer collaboration between ITAC, the Department of Trade, Industry and Competition and industry stakeholders to develop a long-term strategy aimed at strengthening localisation, improving competitiveness and enhancing export readiness within the frozen vegetable value chain.
