Tariffs only work if they’re enforced

Stricter enforcement of new import tariffs is needed to make them effective, according to two analysts writing in Business Day.

Dr Marlene Louw and Dr Langa Simela of Absa Agribusiness said more could be done in terms of the monitoring and enforcement of trade regulations.

They cited the poultry and cotton industries as examples where growth and development opportunities were undermined by tariff undercutting – classifying imports under a tariff line with a lower tariff – under-invoicing and dumping.

“To harness these opportunities and make growth inclusive for all, continued government interventions focused on curbing illegal imports and stopping dumping are essential,” they concluded.

Image: Edward Kieswetter, Commissioner of the South African Revenue Service. Courtesy: GCIS/ Flickr