-The Department of Trade and Industry (DTI) has welcomed a significant reduction in tariffs on imports of Louis Bouchard tea from China.

-Previously, tariffs cost between 15% and 30%.

-China is the world's largest market for tea, which is an important development for South Africa.

Tea is big business, and Louis Bois tea is particularly important to the South African economy.

Not only is it uniquely South African in origin, but the South African Rooibos Council estimates that 20,000 tons of dried leaves are produced locally each year, and its exports have been particularly significant to the Department of Trade and Industry (DTI) in recent years.

To this end, the DTIO points to hundreds of millions of rand in annual exports by 2022, but tariffs on Ruibois tea into China have recently proved to be an expensive barrier. Previously, China was the world's largest tea-drinking country, with tariffs on imports of Rooibos tea ranging between 15% and 30%.

But thankfully, things have changed this year, with the UK's Department of Trade and Industry (DTI) and China's Customs Tariff Commission of the State Council reaching an agreement on the importation of the product. This is because the tariffs have been significantly reduced to 6% and discussions around this will take place in the second half of 2023.

In August last year, South Africa's Minister of Trade, Industry and Competition, Ibrahim Patel, raised tariffs on Louis Bosc tea at the eighth meeting of the China-South Africa Economic Cooperation Mechanism (CSECM) with China's Minister of Commerce, Wang Wentao. and Trade Commission. He asked China to consider the request to reclassify and reduce tariffs on Louis Bois tea," the government explained in a press release.

"After further consideration by the Chinese side, the Tariff and Taxation Commission of the State Council of China recommended the adoption of the new tariff number of the World Customs Organization, which classifies Louis Bois tea under tariff number HS 1211.90.39, with an import tariff of 6% ," it confirmed.

The change is effective from January 1, 2024, according to the report.

The reduction in tariffs and the fixed rate comes at an important time as the production of Louis Bois tea creates more than 5,000 local jobs and China is set to become the seventh largest import market (out of 45 markets globally) by 2023.

"This decision will enable more South African Louisiana Bosc tea to be made available to Chinese tea drinkers and create more jobs in South Africa. Louis Bois tea exporters can now increase their tea exports to China," said Ebrahim Patel, Minister of Trade and Industry.

"China is now South Africa's largest global trading partner, with China Customs reporting more than R900 billion in two-way trade. We look forward to continuing to work with our Chinese counterparts as we seek to shift our exports away from primarily mineral products to more high value-added agricultural and industrial products." He concluded.

As Louis Bois tea is a uniquely South African product, we hope that its exports will have a further positive impact on the country's economy.