THE NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
Question 2482
Ms S R Berend (Cope) to ask the Minister of Trade and Industry:
(1) Whether the Government envisages creating a protection (a) policy and
(b) tariff for classified imported goods that impact on local
productivity, farming, agriculture and manufacturing; if not, why not;
if so, what are the relevant details with regard to (i) chickens, (ii)
eggs and (iii) sugar;
(2) whether the importation of such good and subsequent testing, labeling
and warranties are in line with the Consumer Protection Act, Act 68 of
2008; if not, why not; if so, what are the relevant details? NW2971E
Response:
South Africaâs economic development strategy aims to accelerate growth and
industrial development along a path that generates sustainable and decent
jobs. Trade policy supports industrial development and upgrading,
agricultural development, employment growth and increased value added by
adopting a developmental approach to tariff reform.
A strategic developmental approach to tariff reform in South Africa is
pursued on a case-by-case basis and is evidence-based. As a general
guideline, tariffs on mature upstream input industries could be reduced or
removed to lower the input costs for the downstream, more labour creating
manufacturing. Tariffs on downstream industries, particularly those that
are strategic from an employment or value-addition perspective, may be
retained or raised to ensure long-term sustainability, and job creation.
Tariff increases will be considered in the context of South Africaâs
international trade obligations.
The Government may adjust tariffs when a recommendation to that effect is
received by the International Trade Administration Commission of South
Africa (ITAC) based on investigation in terms of the relevant provisions of
the International Trade Administration Act. Act No 71 of 2002 and its
supporting tariff investigation regulations.
In agriculture, we need to take into account that subsidies and domestic
support provided by developed countries to their agriculture sector have
the effect of depressing world prices to the disadvantage of the domestic
agricultural sector in developing countries including in South Africa.
Tariff setting for agricultural products needs to balance the profitability
of famers with food security needs of the population, particularly for poor
people.
With respect to the specific products, the domestic poultry industry has
submitted an application to ITAC for investigation into an increase in
general customs duty on frozen chicken meat. Specifically, the South
African Poultry Association (SAPA) on behalf of its members, applied in
March 2013 for an increase in the rate of customs duty on carcasses, other
whole bird, boneless cuts, offal and other bone-in portions classifiable
under tariff subheadings 0207.12.20, 0207.12.90, 0207.14.10, 0207.14.20 and
0207.14.90, respectively. ITACâs investigation of a revised tariff
structure for chicken meat has been completed and its recommendations
submitted to me for consideration. I have made a decision in this regard
and my decision will be made public once internal legal processes have been
finalised.
ITAC has not received a request for a tariff intervention in terms of the
sector related to fresh eggs, which are currently classifiable under tariff
subheading 0407.21 under the description of âBirds' eggs, in shell, fresh,
preserved or cooked, of fowls of the species Gallus Domesticusâ, with a
duty free rate.
The South African Sugar Association (SASA) has applied to ITAC for an
review in the tariff formula to increase in the dollar-based reference
price for sugar from the existing US$358/ton to US$764.34/ton. The
application by SASA is in the publication phase and was published on 20
September 2013 in the Government Gazette No. 36849, Notice No. 945 of 2013
for a period of 4 weeks, to afford interested parties an opportunity to
comment on the application. Once ITAC has finalised its investigation,
recommendations in this regard will be submitted to me for consideration
All goods imported into South Africa are subject to domestic rules that
apply to quality, food safety and consumer protection. The Consumer
Protection Act (CPA) alongside the Agricultural Products Standards Act, the
Metrology Act, the Foodstuffs, Cosmetics and Disinfectants Act and the
National Regulator for Compulsory Specifications Act set standards for
which all goods produced or imported into South Africa must comply. These
set rigorous standards for amongst other things, testing, quality, labeling
and warranties for products.