On 15 January, the International Trade Administration Commission of South Africa (ITAC) announced a proposed increase in the ‘Ordinary’ rate of customs duty on roasted groundnuts, classifiable under tariff subheadings 2008.11.20 and 2008.11.90, from 0.99c/kg to 20% ad valorem on which comment is due by 05 February.
The application was lodged by C. Steinweg Bridge (Pty) Ltd who reasoned that:
- Low-cost roasted groundnut imports are undercutting the prices of the like product produced in the Southern African Customs Union (SACU), thus placing the SACU industry in distress.
- These imports originate primarily from Argentina, Brazil, and India.
- In addition, these imports adversely affect the SACU groundnut growers, whose farming production is reduced by a factor of 1:1,15 for each kilogram of imported roasted groundnuts i.e. a SACU peanut farmer loses 1 ton of production for every 850kg of roasted groundnuts imported. Roasted peanut imports thus effectively circumvent the existing tariff protection on raw peanut production.
The Notice is available on request.
Story by: Riaan de Lange