The South African Revenue Service (Sars) on 04 April 2014 announced an increase in the rates of customs duty on beet sugar (1701.12), cane sugar (1701.13), other cane sugar (1701.14) containing added flavouring or colouring matter (1701.91) and other (1701.99). The increase in duty is from free of customs duty to 132c/kg, and applies to all the rates of customs duty – general, European Union (EU), European Free Trade Area (EFTA) and the Southern African Development Community (SADC).
The increase in duty is due to an application lodged by the South African Sugar Association (SASA) that was published by the International Trade Administration Commission of South Africa (Itac) in the Government Gazette of 20 September 2013. The application was for an increase in the domestic dollar-based reference price for sugar from US$358/ton to US$764/ton, and Itac’s recommendation for the increase from US$358/ton to US$566/ton. As motivation for the application SASA argued that an adjustment in the Southern African Customs Union (SACU) tariff on imported sugar was to have a fair level of protection which could be justified on the following basis (i) The South African Sugar Industry and Sustainable Socio Economic Development; (ii) Government Policy Coherence; (iii) Imports and Financial Sustainability of the Industry; (iv) The Distorted World Market and Competitiveness.