Itac recommends increased customs duty on imported peanut butter

The International Trade Administration Commission of South Africa (Itac) has recommended an increase in the customs duty on imported peanut butter. This followed an investigation triggered by an application submitted by RCL Group Services. Itac’s recommendation was that the current duty of R0.99/kg be replaced by a duty of 25% ad valorem. During its investigation, Itac found that domestic production of peanut butter, sales volumes and utilisation of capacity had all declined, while imports (predominantly from India) had seen a major increase. South African producers saw their production costs increase as a result of higher costs for raw materials, labour and operations, putting them at a persistent disadvantage, price-wise, compared with imported peanut butter.

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