12 January 2024
China has finally significantly reduced the tariff on the import of South African rooibos tea.
China, the world’s largest tea market, previously had rooibos tea tariffs ranging from 15% to 30%. The tariff has now been reduced to 6%.
“Our rooibos tea is refreshing, delicious and healthy. This decision will make it possible to make more South African rooibos tea available to Chinese tea drinkers, creating more job opportunities in South Africa,” said Ebrahim Patel, Minister of Trade, Industry and Competition. “Rooibos exporters can now increase their exports to China.”
Werner Nieuwoudt, chairperson of the Rooibos Tea Producers’ Association, says producers are grateful for the new development in the Chinese market.
“In 2022, the export of rooibos tea to China was less than 4% of the total export. The export grew by 250% last year – from 100 tons to 350 tons.”
Rooibos tea is a unique South African product that has gained a strong foothold in world markets with hundreds of millions of rand in annual exports in 2022.
South Africa led efforts at the World Customs Organisation (WCO) for a specific tariff code applicable only to rooibos.
In August, Patel requested that China consider reclassifying rooibos tea and reducing the tariffs.
After further consideration, China’s State Council Customs Tariff Commission suggested adopting the new WCO tariff code to classify rooibos tea under code HS 1211.90.39 with an import tariff of 6%.
“While it is from a low base, we believe it is significant as it is very challenging to enter the Chinese market. We hope that this tariff reduction, as well as the unique code for the import of rooibos tea to China, will lead to increased export volumes to China, improving the stability and sustainability of our industry,” says Nieuwoudt.
According to the South African Rooibos Council, approximately 20 000 tons of rooibos are produced annually, providing employment for more than 5 000 people.
In 2023, China was the seventh-largest importer of rooibos tea from 45 countries worldwide.
