By the time you read this article, the period for commenting on the proposed increase in the rate of customs duty on frozen chicken meat would have ended. This is because instalments of this column are written about two weeks before the date of publication.

Tariff applications are normally published for a period of six weeks, but, as a rule of thumb, when considered urgent, for four weeks, and, in exceptional circumstances, for two weeks. The period for commenting on this application was three weeks.

In the Government Gazette of April 12, released with the Government Gazette for the week ending April 26, the International Trade Administration Commission of South Africa (Itac) published a notice in respect of an increase in the rates of customs duty on frozen chicken meat.

The application pertains to five tariff subheadings – 0207.12.20, 0207.12.90, 0207.14.10, 0207.14.20 and 0207.14.90 – and, in essence, is a request for the imposition of either a specific rate of customs duty or a formula (rated) rate of customs duty to the bound rate. The proposal is for the increase in the rate of customs duty on two tariff subheadings – 0207.12.20 and 0201.12.90 – to a specific customs duty which is capped, and three tariff subheadings – 0207.14.10, 0207.14.20 and 0207.14.90 – to a formula or rated duty customs duty which is capped.

A formula duty is a duty that consists of two components: an ad valorem duty and a specific duty. With a formula duty, both the ad valorem duty and specific customs duty are calculated, with the one that yields the highest customs duty being applied.

Carcasses (excluding necks and offal) with all cuts (for example, thighs, wings, legs and breasts) removed fall under tariff subheading 0207.12.20, and are currently liable for a rate of customs duty of 27%, which is proposed to be increased to 991c/kg, with a maximum of 82%.

Other: whole bird (tariff subheading 0207.12.90) is currently liable for a rate of customs duty of 27%, which is proposed to be increased to 1 111c/kg, with a maximum of 82%.

Boneless cuts (tariff subheading 0207.14.10) are currently liable for a rate of customs duty of 5%, which is proposed to be 12%, or 220c/kg, with a maximum of 82%.
Offal, tariff subheading 0207.14.20, is presently liable for a rate of customs duty of 27%, which is proposed to be 67%, or 335c/kg, with a maximum of 82%.
Other: bone-in portions (tariff subheading 0207.14.90) are currently liable for a rate of customs duty of 220c/kg, which is proposed to be increased to 56%, or 653c/kg, with a maximum of 82%.

The application was lodged by the South African Poultry Association, which argued that South African producers, as well as producers from Botswana, Lesotho, Namibia and Swaziland – the BLNS countries – are distressed and their survival is threatened mainly by a large and rapid increase in the volume of imports of extremely low-priced frozen poultry meat. It stated that some small and medium-sized producers had been forced to shut down, while those still in operation faced the threat of imminent closure, that certain large producers had reduced their workforces and that further job losses were forecast. Should the current situation persist, the association argued, the large producers would be forced to drastically scale back operations and possibly close some. It added that low-priced imports negatively impacted on further investment in the poultry industry and associated industries, affecting commercial and emerging broiler producers, as well as the Southern African Customs Union’s production capacity, and compromised food security in the bloc’s member countries.
Comments were due by May 3.

Tariff Applications
Itac has informed of three tariff applications, for which comments are due by May 17. The first application relates to a proposed increase in the rate of customs duty on self-adhesive plates, sheets, film, foil, tape and other flat shapes of plastics, whether or not in rolls, of polyethylene terephthalates, classifiable under tariff subheading 3919.90.03, from 10% ad valorem to free of duty.

The second application relates to the creation of rebate items for other woven fabric (5407.61), other textile fabrics (5903.20.90) and textile fabric (5907.00.90) for the manufacture of backed suede and upholstered furniture. The third application relates to the creation of a rebate item for palm oil, refined, bleached and deodorised but not fractioned, classifiable under tariff subheading 1511.90, for the manufacture of edible fats or oils, classifiable under tariff subheading 1517.90

Ropes and Cables Interim Review
Comments are due by May 27 on the initiation of an interim review of the antidumping duties on ropes and cables, classifiable under tariff subheading 7312.10.40, manufactured by Casar Drahtseilwerk Saar and originating in or imported from Germany.