South Africa’s trade regulator, the International Trade Administration Commission (ITAC), has defended itself against criticism that its tariff investigations take far too long.
Criticisms raised by trade consultancy XA Global Trade Advisors were widely reported, including in the previous issue of this bulletin.
XA’s latest investigation concluded that 93% of import tariff codes applied in 2023 last had their duty levels reviewed more than 20 years ago. Some R81 billion was paid in import duties over 12 months on these tariff codes, out of a total of R87 billion in total import duties paid for the period.
“Perhaps some of these duties should remain, but it’s not clear how this can be known without a formal review, where comments are requested, and the proper cost-benefit analysis is done,” said XA CEO Donald MacKay.
According to a report in Business Day, ITAC countered that no trade authority had the resources to effectively review all tariff codes.
“No trade authority in the world, even those that have more resources than ITAC, could conduct the number of investigations needed to make a meaningful dent in the 3,537 tariff codes that attract duties in South Africa,” Itac said.
Tariff investigations, which should be completed in six months, average 27 months, which XA Global said compounded the problem. Itac explained these investigations were comprehensive and require substantial time and effort.
While the target time frame is six months, various factors — within and outside the control of ITAC and applicants — can cause delays. These extensions were not a sign of inefficiency, but rather a result of the complex and resource-intensive nature of the investigations, it said.
