Following the rally in the United States maize price, South Africa is facing the prospect of a zero import tariff triggering for maize.
South Africa currently has a maize import tariff of R16,50 a ton.
“We will keep a close eye to see if a new maize import tariff triggers and when it does we will apply for the new tariff. At this stage no white maize is going to be imported and I think the animal feed industry, which imports yellow maize, will be watching this more closely,” said National Chamber of Milling executive director Jannie de Villiers on Monday.
“I hope the International Trade Administration Commission of South Africa will be still be working in December so it can process any tariff that triggers and recommend to the South African Revenue Service that a new tariff level be published,” he added.
When the difference between the world reference price on which the previous adjustment was based, $107,93 a ton, and the 21-day moving average of the US yellow maize price is more than $7/ton for 21 consecutive US trading days, a new tariff will trigger.
The 21-day moving average of the US yellow maize price has been $7/ton above the world reference price since November 19, and if it remains at that level until December 17, the zero import tariff will trigger. — I-Net Bridge