Dumping and predatory trade

Importers can apply tariff rebates as they choose

Chicken importers will be able to apply tariff rebates to imports of chicken products of their choosing. This means they can fill their allocation with the products that provide the most profit. 

This was confirmed by South Africa’s trade regulator ITAC in response to questions from FairPlay. The rebates are designed to encourage chicken imports to counter a shortage which local poultry producers insist does not exist. Producers say the rebates will cause a surplus, not fill a supply gap.

The chicken products available for import tariff rebates are carcasses, offal (chicken livers, feet, heads etc), boneless cuts and bone-in portions.

ITAC, the International Trade Administration Commission, has approved a quota of 43 000 tonnes of chicken products that can be imported at the discounted rates during the first three months of this year. There is a possibility that the quota will be repeated for the second quarter.

ITAC communications manager Thalukanyo Nangammbi told FairPlay that no details would be provided of permit allocations to individual importers or of the geographical areas in which the rebate permits would apply. ITAC would provide information only on an aggregated basis for the three-month period.

“The volume allocated to applicants can be used to import any of the following products,” he said, before listing them.