Revised import duty for wheat approved

After an investigation into a revised import duty for wheat and wheaten flour by the International Trade Administration Commission (Itac), its recommendations have been approved by the minister of trade and industry – and were implemented by the SA Revenue Service (Sars) from April 30. This followed the application last year by Grain SA for an increase in the domestic dollar- based reference price of wheat, classifiable under import tariff subheading 1001.90, from US$157/ ton to US$260/ton. According to Siyabulela Tsengiwe, Itac chief commissioner, it was found that there had been a sharp increase in wheat imports since the 2007/08 season. “We considered the cost and price differentials between domestically produced wheat and that produced in the major wheat- producing countries,” he said. “Also that input costs have been rising and that major differences exist in the competitive position of the different wheat- producing regions.” The commission took into account both the low profitability of farmers and the impact of a rise in duty on bread prices, and its impact on consumers, particularly the poor. It decided that the appropriate level of tariff protection was US$215/ton