On 22 October 2021, the International Trade Administration Commission of South Africa (ITAC) called for comment on the proposed creation of a Temporary Rebate Facility under Schedule No.4 to the Customs and Excise Act, 1964 “General Rebates of Customs Duties, Fuel Levy and Environmental Levy”, for the importation of bulk white chocolate, classifiable in tariff subheading 1704.90, on which comment is due by 19 November 2021.
The temporary Rebate Item to read “White chocolate, in immediate packaging of a content of 25 kg or more, classifiable in tariff subheading in 1704.90, for use in the manufacture of chocolate containing cocoa, in blocks, slabs or bars, classifiable in tariff heading 1806.3, and other chocolates classified in tariff subheading 1806.90, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the product is not available in the SACU market”.
The application was lodged by Kees Beyers Chocolates CC who reasoned that bulk white chocolate production in the Southern African Customs Union (SACU) is mainly produced for own use by large chocolate producers who are predominantly multinational companies. Production of industrial bulk white chocolate for resell is minimal to non-existent. Locally bulk white chocolate required by Kees Beyers is imported from Europe and attracts a 25% customs duty, yet the final retail-ready chocolate products originating from the European Union (EU) enter the SACU market duty free (0%) because of the Economic Partnership Agreement (EPA). Retail-ready chocolate products originating from the EU have been a significant challenge for years as EU manufacturers do not pay customs duties on raw materials and their final retail.
The Notice is available on request.