Customs Updated:
31 Jul 2017

Tariff Book (S1 P1)
3rd sugar variable tariff increase

On 10 October the South African Revenue Service (Sars) announced the third 2018 amendment to the variable tariff for sugar, classifiable in tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99. The first rate of customs duty increase was published on 08 June from 213.1c/kg to 233.81c/kg, on 03 August from 233.81c/kg to 419.52c/kg, and the latest from 419.52c/kg to 460.86c/kg.

These increases relate to the international sugar price which has decreased significantly in 2018. As proof, www.marketwatch.com on 24 August published an article “Sugar prices are the lowest in a decade, but haven’t hit bottom yet”, with the subtitle “Global sugar production is forecast to hit a fiscal year record”. If this is true then you can expect further sugar variable tariff increases. So, South African consumers do not benefit from the lower 2018 international sugar price.

The reasoning for the latest variable formula tariff increase is contained in the International Trade Administration Commission of South Africa (Itac) Minute M10/2018.