Sugar Duty Jumps 44%, Steel Payments Imposed
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SARS has published two tariff amendment notices under the Customs and Excise Act, 1964. One raises the customs duty on imported sugar with effect from 28 August 2026. The other imposes provisional payments on a specific category of coated steel from China, up to and including 27 February 2027. Both flow from International Trade Administration Commission (ITAC) recommendations.
Notices R7864 and R7865 were published in Government Gazette 55269 on 28 August 2026.
Sugar: duty rises to 697.92c/kg
The five subheadings (1701.12, 1701.13, 1701.14, 1701.91 and 1701.99) cover beet sugar, cane sugar specified in Subheading Note 2 to Chapter 17, other cane sugar, sugar containing added flavouring or colouring matter, and other sugar. The amendment applies specifically to these five tariff subheadings.
That is an increase of 214.20c/kg, or R2,142 per tonne, which is roughly 44% more duty than the previous rate.
The increase is not a discretionary policy decision. It is the variable tariff formula responding to the Dollar Based Reference Price (DBRP), which has been raised from US$680 per ton to US$785 per ton. When the world sugar price falls relative to the reference price, the duty rises to protect the local industry. The same mechanism produced the wheat duty cut we covered when SARS reduced wheat and flour duty to free of duty earlier in August, just in the opposite direction.
Steel: provisional payments on coated flat-rolled products from China
Provisional payments have been imposed in relation to anti-dumping duties on the alleged dumping of flat-rolled products of iron or non-alloy steel, 600mm or wider, painted, varnished or coated with plastics, classifiable under tariff subheadings 7210.70.20, 7210.70.30, 7210.70.40 and 7210.70.90, originating in or imported from the People's Republic of China.
The provisional payments apply up to and including 27 February 2027.
Two points on what a provisional payment is. It is not a final anti-dumping duty, it is imposed while the investigation runs. If no final anti-dumping duty is imposed before the provisional-payment period expires, the provisional payment is refundable. If the final duty is lower than the provisional payment, the difference is also refundable. Importers should still budget for the cash outflow now, because the money leaves the business either way in the interim.
Note also that this is separate from the safeguard measures applicable to specified corrosion-resistant steel products. As we reported in New Tariff Amendments Effective 12 June 2026, a declining safeguard duty starting at 52.34% applies to specified corrosion-resistant steel products. Importers of coated product from China should check the precise tariff classification and origin of the goods against the applicable measures rather than assuming only one applies.
What to check for affected clients
Consignments in transit. Duty is generally payable at the rate applicable at the time of entry for home consumption. Sugar entered for home consumption on or after 28 August 2026 carries 697.92c/kg.
Tariff classification. For the steel measure, the coating and the 600mm width are the deciding factors. A product one subheading over is unaffected.
Fixed-price contracts. A R2,142 per tonne duty increase breaks a landed cost model that was signed off in July. Sugar-intensive manufacturers, bakeries and beverage producers feel this in gross margin.
Provisional payment treatment. Because provisional payments may be refunded, discuss with the client how to record them. A refundable payment is not the same thing as a cost.
Country of origin documentation. The steel measure applies to the specified products originating in or imported from China, so both tariff classification and origin need to be checked.
For these two measures, practitioners should check the effective date specified in the relevant Gazette notice rather than relying on the date of an announcement. For clients importing anything on ITAC's radar, watching the Government Gazette is now part of the job.
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