On 29 April 2022, ITAC initiated an investigation into the creation of a temporary rebate, for the importation of onion powder classifiable under tariff subheading 0712.20:

“Onions, in powder, classifiable in tariff subheading 0712.20, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided that the product is not available in the SACU region.”

The application was brought by Sensient Technologies South Africa (Pty) Ltd, for the following reasons:

  • There are no local producers of onion powder in the Southern African Customs Union (SACU). Sensient is incurring an unnecessary cost in the form of tariffs to import a product that is not available in SACU.
  • The current 20% duty in place was meant to protect the SACU manufacturers; however, this is no longer necessary given that there are no domestic manufacturers.
  • The duty has become an unnecessary cost burden. The cost savings resulting from the duty removal will be better spent elsewhere and at the same time make the pricing of the subject product more competitive.

Interested parties have until 27 May 2022 to respond.

Need help responding? Contact us at info@xa.co.za

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