The import tariff on frozen mixed veggies stays the same, at 10%.
South African consumers could be spared higher prices for frozen mixed vegetables after the International Trade Administration Commission (ITAC) recommended that the import duty remain at 10%, rejecting an application for a sharp increase that could have added to grocery bills.
The recommendation follows an application by local producer Nature’s Garden to increase the customs duty on frozen mixed vegetables from 10% to 37% ad valorem. It was initiated by the former Minister of Trade, Industry and Competition, Ebrahim Patel, on 21 July 2023.
In a note for XA Global Trade Advisors, trade advisor Wongani Msiska said that while the domestic frozen vegetable industry continues to face challenges, raising the tariff would have had a disproportionate impact on consumers, particularly lower-income households, while providing limited additional protection to local producers.
The commission found that domestic production and demand declined between 2018 and 2022, largely because of electricity supply constraints and load shedding rather than import competition. It also noted that imports had declined over the review period, while local producers had maintained their market share, supported by a price advantage over imported products.
