Sugar Reference Price Increase On 20 September 2013 the International Trade Administration Commission of South Africa (ITAC) published a proposed increase in the domestic Dollar-based reference price (DBRP) for sugar, classifiable in tariff heading 17.01 of Schedule No.1 Part 1 to the Customs and Excise Act (Act), from U$358/ton to US$764/ton through an adjustment of the calculation of the DBRP for sugar by basing it on the domestic cost of production. Using the requested reference price of US$764/ton, the variable formula for sugar will trigger an increase in the customs duty if the London No.5 sugar settlement price falls by US$20/ton below the base price, which is the 3-week moving average price for the London No.5 sugar settlement price. Conversely, a reduction in the customs duty will be triggered if the London No.5 sugar settlement price increases by US$20/ton above the base price. The application was lodged by the South African Sugar Association (SASA), which reasoned that the main motivation for an adjustment in the Southern African Customs Union (SACU) tariff on imported sugar is to have a fair level of protection that can be justified on the following basis: (i) The SASA and Sustainable Socio-Economic Development; (ii) Government Policy Coherence; (iii) Imports and the Financial Sustainability of the Industry; and (iv) The Distorted World Market and Competitiveness. SASA also submitted that the industry is a key component of the South African agriculture and national socio-economic development. However, for the Industry to continue in its present form and contribution to government’s development objectives, it requires economic stability and sustainability. It was further submitted that the SACU tariff from sugar plays a crucial role in this regard as the industry cannot maintain its contribution to national development in the absence of an effective tariff, given the nature of the distorted global sugar sector. Comment is due by 18 October 2013.