On 26 January 2024, SARS created a temporary rebate for chicken imports classified under subheading 0207.1. This follows an instruction from Minister Patel in October 2023 to urgently investigate the possibility of rebating the duties on chicken at times when there is insufficient supply in the market. Due to the outbreak of avian influenza in September 2023, the stock levels of eggs and chicken meat were low.
Temporary rebates allow duties to be reduced or waived when the domestic industry cannot meet the volumes demanded. They require a permit to be issued by ITAC and are limited a particular volume and timeframe.
The temporary rebates created are as follows, but please note the fifth column which gives the duty rate which will be payable if the rebate is claimed. If we look at ITAC’s board report, it’s clear that this is not their intention, but it is an understandable mistake. They instead want the duties to be moved to their levels before the last duty increase which are the values in the far right column.
Rebate item | Tariff heading | Description | Extent of rebate | Duty payable after rebate | ITAC's intended duty after rebate |
---|---|---|---|---|---|
460.03 | 0207.12 | Carcasses and whole birds | Full duty | No duty | No duty |
460.03 | 0207.14.1 | Boneless cuts | Full duty less 30% | 30% | 12% |
460.03 | 0207.14.2 | Offal (livers, feet, heads, and other) | Full duty | No duty | No duty |
460.03 | 0207.14.9 | Bone-in cuts | Full duty less 25% | 25% | 37% |
How the rebate works
An annual quota of 172 000 tons has been provided, broken into 43 000 tons per quarter of chicken which can be rebated. This quota is only available for as long as the Department of Agriculture, Land Reform and Rural Development (DALRRD) confirms that avian influenza (AI) still negatively impacts production and available volumes.
The quota will be applied across all of the products, not 43 000 tons per cut of chicken and the quota will be split equally between Historically Disadvantaged Individuals (HDIs) and Historical Importers (HIs – white importers). ITAC will publish a government gazette when applications can be made.
Here are the key rules you need to be aware of:
- Permits will typically be issued for a period of three months, although the period can vary.
- Any unused volume at the end of the period will be forfeited, but goods can be cleared out of bond and be rebated. This means the goods can be sold between importers in bond – in other words, if someone has extra volume left and someone is short, this trade could happen in bond, which will improve the overall utilisation of the rebate.
- Goods imported into a given SACU state cannot be exported to a different SACU state.
- The rebate only applies to the normal duties, not to any anti-dumping duties which may be in place. In other words, importers will pay the reduced normal duty, plus the anti-dumping duties.