South Africa Imposes Import Final Duties on European Potatoes

The recent approval of the International Trade Administration Commission's (ITAC) suggested duties of up to a three-digit percentage on imported frozen potato chips was announced by the South African Revenue Service (SARS) and given by DTIC Minister Ebrahim Patel.

To stop further dumping on the South African Customs Union (SACU) market, ITAC has implemented significant import charges on imported frozen potato chips from three European nations.

The final tariffs levied on Germany, the Netherlands, and Belgium range from 8.8% to 239% and are valid for the following five years. The new levies are far higher than the original, temporary ones that expired in January of this year.

McCain, Nature’s Garden, and Lamberts Bay Foods ‘Exposed to Cheaper Imports’

According to the Moneyweb, Hume International, a sizable importer of frozen foods including French fries, described the additional levies as “astronomical” considering the pressure on prices consumers are currently facing.

Back in 2019, McCain, the country's largest maker of frozen potato chips, asked Belgium and the Netherlands for continuing protection from dumping.

The duties against Belgium and the Netherlands lapsed as a result of the commission's failure to complete its sunset assessment within the World Trade Organization's (WTO) allotted 18 months, leaving the local industry (McCain, Nature's Garden, and Lamberts Bay Foods) vulnerable to less expensive imports.

Then, ITAC decided to launch an independent anti-dumping investigation with Germany.

Initial findings of its preliminary inquiry indicated that the SACU industry had suffered “material injury” as a result of the alleged dumping. Provisional taxes of between 9% and 181% were imposed on imports from the three nations in July 2022.

When the temporary taxes ran out in January, the local market was forced to compete with imported goods at dumping prices.

Dumping happens when a product is offered for sale in the importing nation for less than it would sell for on the exporting nation's market.

Considering All “Relevant Written Comments”

In a recent statement, ITAC stated that it had decided after taking into account all “relevant written comments” and oral arguments from the importers and stakeholders.

It was discovered that the local industry had suffered material harm as a result of the continuous dumping of frozen potato chips onto the SACU market.

The investigation's conclusion was welcomed by Potatoes SA, which also stated that it had nothing against the importation of potato chips. Local manufacturers must, however, be able to compete on an even playing field.

The Netherlands' duty jumped from 104% to 239%, while Germany's duty remained at 181%. Belgium's maximum provisional duties were 23%, but the final duty that will be in effect for the next five years is 67%.