Increase in wheat import duties

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On 19 July 2024, ITAC issued a gazette targeting tariff subheadings for wheat and wheat flour (1001.91, 1001.99, 1101.00.10 to 1101.00.90) by increasing the associated customs duties.

To ensure stable wheat prices, the import duty acts as a buffer against extreme market fluctuations. Adjustments are triggered when the average price of wheat over the past three weeks deviates significantly (by more than $10 per ton) from the price used for the last duty calculation. This deviation can be either a sharp decline or a sudden spike and needs to persist for three consecutive weeks to activate a duty adjustment.

Wheat import duties have remained duty-free for a considerable amount of time. However, the new gazette dated 19 July 2024 has introduced new customs duties for wheat imports. The table below outlines these newly implemented duties:

Tariff SubheadingDescriptionGeneralEU/UKEFTASADCMERCOSURAfCFTA
1001.91Seed17,63c/kg17,63c/kg17,63c/kgFree17,63c/kg17,63c/kg
1001.99Other17,63c/kg17,63c/kg17,63c/kgFree17,63c/kg17,63c/kg
1101.00.10Brown wheaten meal produced by the milling of whole grains (the bran, germ and endosperm) (excluding separated wheat bran, separated wheat germ or separated wheat semolina or endosperm)26,45c/kg26,45c/kg26,45c/kgFree26,45c/kg26,45c/kg
1101.00.20Cake wheat flour as defined in Additional Note 1(a) to Chapter 1126,45c/kg26,45c/kg26,45c/kgFree26,45c/kg26,45c/kg
1101.00.30White bread wheat flour as defined in Additional Note 1(a) to Chapter 1126,45c/kg26,45c/kg26,45c/kgFree26,45c/kg26,45c/kg
1101.00.90Other26,45c/kg26,45c/kg26,45c/kgFree26,45c/kg26,45c/kg

Say hello at info@xagta.com for all tariff investigations related inquiries.

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