Exactly 1 589 days previously at the time of writing, the International Trade Administration Commission of South Africa (Itac) had published in the Government Gazette – on February 22, 2019 – its first two tariff applications for comment, with a closing date of March 22, 2019. The application of interest was for an increase in the ‘general’ rate of customs duty on mixtures of frozen vegetables from 10% to 37%.

The application was lodged by Nature’s Garden, whose website professes it is proudly South African owned, managed and operated. It has produced frozen vegetables and chips for 22 years. These are stocked by major retailers under several brands: Nature’s Garden, Greens, Golden Harvest, Pick n Pay, Pick n Pay No Name, Makro M Brand and Spar. In the fast-food and restaurant space, Nature’s Garden is an approved supplier to KFC, Spur, Captain DoRegos, Nando’s, King Pie, Bidfood and Barcelos.

You might be wondering whether this is an infomercial or a history lesson; it is neither. Fast forward 1 589 days – to June 30 this year – and another Government Gazette notice, curiously titled ‘Outcome of Tariff Amendment Investigation’, is published.

It has been four years and four months since the first notice was gazetted. How long does it take Itac to complete a tariff application, or a ‘tariff investigation’, as the commission terms it?

To answer this question, you need to consult Itac’s 12-page ‘Tariff Investigation’ booklet, which is available on its website, (www.itac.org.za/upload/Tariff_Investigations.pdf), and states: “The commission carries out its investigations speedily and with rigour. The timelines have been revised to ensure speedy delivery of the instruments. It now takes the commission generally four months for sectors in distress and six months for normal investigations.” If one is generous and takes a month to be 31 days, then the periods are 124 days and 186 days respectively.

A question one may ask is whether the sector in which Nature’s Gardens operates is ‘in distress’ or merely ‘normal’. The latter reminds me of Charles Addams’ quote: “Normal is an illusion. What is normal for the spider is chaos for the fly.” Well, according to the reasoning offered by Nature’s Garden in its application: “Low-cost imports of frozen vegetables are undercutting the prices of product produced in the Southern African Customs Union (Sacu), thereby placing the Sacu industry in distress. These imports originate primarily from China and the European Union.” So, Nature’s Garden considered the sector to be in ‘distress’ and obviously anticipated a four-month investigation.

So, where are we now? What progress has been made? How imminent is a tariff amendment? According to the recent Government Gazette notice: “A full-scale investigation culminated in the commission’s final recommendation on Nature’s Garden’s application, which recommendation was subsequently forwarded to the Minister of Trade, Industry and Competition for his consideration.” It’s not stated as to when.

“The Minister referred the matter back to the commission, subsequent to which the commission provided clarification and expanded on certain aspects relating to the proposed increase in the rate of customs duty on frozen mixed vegetables.” Again, no date.

The Government Gazette notice then continues for another 225 words, mentioning the Minister’s ‘concerns’, ‘requests’, his communication, and his considerations, before concluding: “Taking into account all information at his disposal, the Minister also considered various options that may mitigate the impact of a tariff increase on consumers but, weighing up all the circumstances, decided to reject the application.

“However, the Minister acknowledged that circumstances may change in the future, in particular if current geopolitical tensions subside and food prices stabilise as the global economy recovers from the impact of Covid-19.