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South Africa Considering Higher Taxes On Imported Poultry

by Lorys Charalambous, Tax-News.com, Cyprus

21 December 2016


South Africa's Department of Trade and Industry says it is considering tax measures in response to the poultry industry's concerns about a surge in imports of foreign poultry products.

On December 16, the DTI confirmed that, in conjunction with the Department of Agriculture, Forestry, and Fisheries, it "has been working with the domestic industry to address the challenges in the industry."

It pointed out that, over the last three years, a number of actions have been taken in this regard. For example, in 2013 the import duty on a number of poultry products was increased significantly. The current duties for chicken imports from countries such as Brazil and the United States include an 82 percent duty for whole birds, a 31 percent duty for carcasses, a 12 percent duty for boneless cuts, and a 37 percent duty for "bone-in" portions.

These import duties, however, are not applicable to imports from the European Union (EU), with which South Africa has a preferential trade agreement.

In addition, trade remedies have been taken "where evidence has indicated the dumping of poultry in the South Africa market or where there is a surge in imports." In 2015, anti-dumping margins ranging from 3.86 percent to 73.33 percent were imposed on frozen bone-in chicken pieces from Germany, the Netherlands, and the United Kingdom.

The DTI also confirmed that a safeguard investigation has been initiated regarding the surge of imports of frozen bone-in chicken pieces from the EU, and this investigation is "far advanced."

TAGS: South Africa | tax | Netherlands | anti-dumping | United Kingdom | tax rates | Brazil | Germany | United States | import duty | trade | European Union (EU) | Europe | Africa

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