On 29 April 2022, the International Trade Administration Commission of South Africa (ITAC) extended an invitation to comment on the creation of a Temporary Rebate Item under Schedule No.4 to the Customs and Excise Act, 1964 for the importation of onion powder classifiable under tariff subheading 0712.20 on which comment is due by 27 May 2022.
The proposed Rebate Item reads “Onions, in powder, classifiable in tariff subheading 0712.20, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided that the product is not available in the SACU region.”
The application was lodged by Sensient Technologies South Africa (Pty) Ltd who reasoned that:
- There are no local producers of onion powder in the Southern African Customs Union (SACU). Sensient is incurring an unnecessary cost in the form of tariffs to import a product that is not available in SACU.
- The current 20% ad valorem customs duty in place was meant to protect the SACU manufacturers; however this is no longer necessary given that there are no domestic manufacturers.
- The customs duty has become an unnecessary cost burden. The cost savings resulting from the duty removal will be better spent elsewhere and at the same time make the pricing of the subject product more competitive.
The tariff application is available in request.
