On 15 January, the International Trade Administration Commission of South Africa (ITAC) announced a proposed increase in the ‘Ordinary’ rate of customs duty on peanut butter, classifiable in tariff subheading 2008.11.1, on which comment is due by 05 February.
The application was lodged by RCL Foods Consumer Proprietary Limited who reasoned that:
- Low-cost imports of peanut butter are undercutting the prices of peanut butter produced in the Southern African Customs Union (SACU) and are placing the SACU industry in distress.
- These imports originate primarily from India.
- In addition, these imports adversely affect the SACU groundnut growers, whose farming production is reduced by a factor of 1.09:1 for each kilogram of imported peanut butter i.e. peanut butter imports serve to circumvent the existing tariff protection on raw peanut production.
The Notice is available on request.
Story by: Riaan de Lange