ITAC announces sugar tariff review process amid diverging industry applications

SUGAR TARIFFS

- YOGASHEN PILLAY

THERE has been a welcome reaction to the International Trade Administration Commission (ITAC), a division of the Department of Trade, Industry and Competition, announcing that the sugar tariff review process has been gazetted regarding the Dollar-Based Reference Price (DBRP).

ITAC's review comes after the South African Sugar Association (Sasa) applied for an increase in the current DBRP while the Beverage Association of South Africa (Bevsa) applied for a reduction in the current DBRP.

ITAC said that Sasa applied for an increase in the current DBRP from $680 (R10 900)/ton to $905 (R14 400)/ton. “Sasa, citing amongst other reasons the need to protect the local sugar industry and ensure its sustainability. This application was made known to industry stakeholders, who were provided the opportunity to submit preliminary comments.”

ITAC added that subsequently, Bevsa applied for a reduction in the current DBRP from $680 (R10 900)/ton to between $552 (R8 850)/ton and $650 (R10 420/ton). “Bevsa cited amongst other reasons the adverse impact of current duties on beverage producers, bottlers, and consumers. The divergent applications submitted by industry stakeholders prompted a need to determine the most appropriate course of action, in alignment with ITAC’s legislative and policy framework, including the strategic objectives outlined in the Sugar Industry Value Chain Masterplan””