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 Subheading | Description | General | EU/UK | EFTA | SADC | MERCOSUR | AfCFTA |
---|---|---|---|---|---|---|---|
1001.91 | Seed | 17,63c/kg | 17,63c/kg | 17,63c/kg | Free | 17,63c/kg | 17,63c/kg |
1001.99 | Other | 17,63c/kg | 17,63c/kg | 17,63c/kg | Free | 17,63c/kg | 17,63c/kg |
1101.00.10 | Brown 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/kg | 26,45c/kg | 26,45c/kg | Free | 26,45c/kg | 26,45c/kg |
1101.00.20 | Cake wheat flour as defined in Additional Note 1(a) to Chapter 11 | 26,45c/kg | 26,45c/kg | 26,45c/kg | Free | 26,45c/kg | 26,45c/kg |
1101.00.30 | White bread wheat flour as defined in Additional Note 1(a) to Chapter 11 | 26,45c/kg | 26,45c/kg | 26,45c/kg | Free | 26,45c/kg | 26,45c/kg |
1101.00.90 | Other | 26,45c/kg | 26,45c/kg | 26,45c/kg | Free | 26,45c/kg | 26,45c/kg |