Itac recommends maintaining 10% import duty on frozen mixed vegetables
The International Trade Administration Commission of South Africa (Itac) has recommended maintaining a 10% ad valorem import duty for frozen mixed vegetables.
Itac's investigation found that global and domestic economic factors continue to shape the frozen vegetable market. International events have contributed to ongoing food price volatility.
Simultaneously, local food inflation and constrained household incomes have placed pressure on consumers, particularly lower-income groups.
Domestic production and demand for frozen mixed vegetables declined between 2018 and 2022, largely owing to electricity supply constraints and loadshedding. Despite this, the domestic industry has maintained its market share, supported by a recent price advantage over imports.
Additionally, import trends have shifted significantly. While the EU previously dominated imports into the Southern African Customs Union market, volumes from the EU, and particularly Belgium, gradually declined.
Overall import levels have decreased, indicating that import competition is not the primary driver of challenges facing the domestic industry, Itac notes.
The commission's impact assessment found that increasing the duty would disproportionately affect lower-income households by raising food costs and limiting affordability, while providing limited benefit to domestic producers.
Therefore, the commission has recommended that the current customs duty of 10% ad valorem be maintained.
Itac will continue to monitor import trends and market developments and may review the duty structure, should significant changes occur, it says.
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