South Africa Welcomes China’s Reduced Tariffs on Rooibos Tea Imports

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Rooibos

Rooibos

The South African government has expressed its appreciation for the decision made by the People’s Republic of China to significantly decrease tariff rates on imports of South African Rooibos tea.

Previously, China imposed tariffs ranging from 15% to 30% on rooibos tea, but this has now been reduced to 6%, effective from 1 January 2024, according to the Department of Trade, Industry and Competition (dtic).

The unique South African tea has made a mark in global markets with annual exports amounting to hundreds of millions of rands in 2022.

South Africa took the lead at the World Customs Organization (WCO) in advocating for a specific tariff code solely for rooibos tea.

In August 2023, South Africa’s Minister of Trade, Industry and Competition Ebrahim Patel discussed the tariff duties on rooibos tea with his counterpart, Chinese Minister of Commerce Wang Wentao, during the eighth meeting of the China-South Africa Joint Economic and Trade Commission.

Minister Patel had requested that China reclassify Rooibos tea and decrease the duties, and following careful consideration, the Chinese Customs Tariff Commission advised the adoption of the new tariff code of the WCO to categorize Rooibos tea under tariff code HS 1211.90.39 with an import tariff rate of 6%.

The Department stated that approximately 20,000 tons of Rooibos are produced in South Africa annually, providing employment for over 5,000 people. In 2023, China was the seventh-largest recipient market for South African Rooibos, out of the 45 countries importing the tea.

Minister Patel commended the decision by the Chinese Customs Tariff Commission and expressed optimism about the potential for more South African Rooibos tea to be available to Chinese consumers, creating more jobs in South Africa.

He also highlighted the close collaboration with the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, and her team to finalize the decision.

China remains South Africa’s largest global trading partner, with two-way trade surpassing R900 billion, and the government envisions a shift from mainly mineral exports to a broader range of value-added agricultural and industrial products.

The reduction in tariffs is seen as a positive step in strengthening trade relations and expanding opportunities for South African exports to the Chinese market.

 

Rooibos

Rooibos

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