Itac has advised, through a notice in the Government Gazette of 21 September 2012, of an application received from Grain SA for the increase in the domestic dollar-based reference price for wheat, classifiable under tariff heading 1001.9, from US$215/ton to US$326/ton through an adjustment in the variable tariff formula for wheat by the inclusion of a self sufficiency factor of 1.158. Based on the international price information at the time the application was made, the requested formula would trigger an increase in the rate of customs duty on wheat as well as wheaten flour, classifiable under tariff subheading 1101.00, from free of customs duty to 40.91c/kg and 61.36c/kg, respectively. According to the notice, this level of increase is based on price information on 25 April 2012 when Grain SA’s application was received by Itac. Using the requested reference price of US$326/ton, the variable tariff formula for wheat will trigger an increase if the international price of US No.2 HRW falls by US$10/ton below the base price of US$273, which is the three-week moving average price for US No.2 HRW as calculated on 25 April 2012, resulting in a new moving average base price. Conversely, a reduction in the rate of customs duty will be triggered if the international price of US No.2 HRW increases by US$10/ton above the base price. Comment is due on 02 November 2012.