The International Trade Administration Commission of South Africa (ITAC) said that following an investigation, they have decided to increase the customs duty on peanut butter from 0.99c/kg to 20%.
The International Trade Administration Commission of South Africa (ITAC) has recommended increasing the customs duty on imported peanut butter from 0.99 cents per kilogram to 20% ad valorem, saying the move is needed to protect the domestic industry from rising imports and improve the competitiveness of local manufacturers.
The recommendation follows an application by RCL Group , which had sought an increase in the tariff to 25%. After investigating the matter, ITAC opted for a lower rate of 20%, saying it strikes a balance between supporting local manufacturing, promoting value addition and maintaining affordability for consumers.
According to the commission, domestic peanut butter producers have faced declining production, sales volumes and capacity utilisation during the investigation period, while imports have risen sharply.
ITAC found that India remained the dominant source of imported peanut butter and that local manufacturers have consistently been at a price disadvantage compared with imported products.
