In particular, the decline in fees was due to the fact that in early April the price of wheat in international tenders reached $237 per ton.

As specified, the system of calculating import customs duty on wheat in South Africa is designed in such a way that the increase of the world prices on grain duty on imports into the country decreased, and when the reduction – on the contrary, increased. The adjustment of the fee level is performed, if the spread between domestic and external wheat prices exceed $10 per ton.

This solution offers regular amendments the level of import duties, which, however, does not lead to volatility in domestic prices of subsidized bread.

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