Minister of Trade and Industry, Rob Davies announced a tariff increase for five categories of imported chickens, aimed at protecting the country’s poultry industry which employs about 100 000 people.
The tariff hike, Davies said, was based on the recommendations of the International Tariff Administration Commission.
“Aside from whole chicken, which made up less than 1 percent of total poultry imports over the last 12 months and was a more expensive product, the overall tariff increase was 8.75 percent,” he said.
“Under the new structure, the import tariff for whole bird, which constitutes a small percentage of the total customs union market for poultry, would be increased from 27 percent to 82 percent.”
The increase would see carcasses increased from by 31 percent and internal organs, also known as offal, by 30 percent.
Davies noted both products as an important source of protein for poor households.
Boneless cuts increased by 12 percent.
“Taking into account that bone-in portions constitute about 70 percent of domestic production, and that the domestic industry is at a significant price disadvantage in relation to the imported product, the tariff for this category will be changed from a specific duty of 220 cents per kilogram to an according to value duty of 37 percent,” said Davies.
However, he said there would be an early review of the new tariffs to assess the tariff impact.
According to Davies, the level of the tariff increases will cause an appropriate balance in limiting the price raising effects on poor households, while ensuring that domestic producers were placed on an improved competitive footing, compared to their foreign counterparts.
“This should allow for a fair and reasonable profit to producers and in turn, encourage further investment, production and employment in the industry,” he added.
