South Africa’s poultry sector has warned the government that there is no need to continue with tax refunds on chicken imports, as doing so would be illegal.
These import duty rebates are intended to promote more chicken imports if avian flu causes a supply constraint, reported FairPlay Movement.
They remained in place for the first three months of the year, despite the poultry industry’s claim that there was no shortage.
The SA Poultry Association (SAPA) gave a report to two government organisations, the International Trade Administration Commission (ITAC), and the Department of Agriculture, Land Reform and Rural Development (DALRRD).
“The report clearly indicates that domestic production has recovered from the HPAI (bird flu) outbreak and is able to meet and is exceeding domestic demand,” said SAPA’s legal advisers, Webber Wentzel.
According to SAPA, there is no reason for retaining the rebates. The organisation also mentioned the guidelines for implementing import tariff rebates.
These included stipulations stating that refunds could be terminated if domestic production had fully recovered from the effects of avian flu and was sufficient to meet current or expected demand for the specified chicken products.
“The current situation thus falls squarely within the circumstances in which the guideline contemplate that the issuing of rebate permits is to be discontinued.
“Moreover, the rebate provisions stipulated that the rebates were to remain in force only ‘for the duration of a shortage of chicken as a result of an outbreak of [bird flu] in South Africa’. Given that there is currently no such shortage, it would thus be unlawful for the rebates to remain in place,” added SAPA.
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