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ORIGIN COME-00
INFO OCT-01 AF-06 IO-11 ISO-00 FEA-01 AGR-05 CEA-01
CIAE-00 DODE-00 EB-07 FRB-03 H-02 INR-07 INT-05 L-03
LAB-04 NSAE-00 NSC-05 PA-01 AID-05 CIEP-01 SS-15
STR-04 ITC-01 TRSE-00 USIA-06 PRS-01 SP-02 OMB-01
/098 R
DRAFTED BY COM:TNAD:OTP:BIEPR:DGARDNER:STMCP
APPROVED BY EB/ITP/OT/TA:WGBARRACLOUGH
COM/TNAD/OTP/BIEPR:FMONTGOMERY
COM/OIM/BIC:SMILLER
COM/TNAD/OTP/BIEPR:BMARSH
STR:LLEE (SUBS)
COM/DND/OTP/BIEPR:DBLACK
--------------------- 030397
R 060335Z MAR 76
FM SECSTATE WASHDC
TO AMEMBASSY PRETORIA
INFO USMISSION GENEVA
AMCONSUL CAPE TOWN
AMCONSUL DURBAN
AMCONSUL JOHANNESBURG
LIMITED OFFICIAL USE STATE 055505
E.O. 11652: N/A
TAGS:ETRD, GATT, SA
SUBJECT: SOUTH AFRICAN DUTY ON BABY FOOD
REF: A. PRETORIA 323
1. SAG DEPT. OF COMMERCE IS CORRECT IN CLAIM THAT TARIFF
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BINDING ON INFANT FOOD UNDER TARIFF HEADINGS 19.02, 20.02
AND 20.05 WAS WITHDRAWN UNDER ART. XXVIII NEGOTIATIONS.
HOWEVER, THE US BELIEVES SAG HAS NOT COMPLIED WITH TERMS
OF SAG-US ARTICLE XXVIII AGREEMENT. SPECIFICALLY, UNDER
TERMS OF NOTE TO GATT DOCUMENT SECRET/200/ADD. 12 OF JULY
31, 1974, SAG "UNDERTAKES TO GUARANTEE FREE ISSUANCE OF
IMPORT LICENSES" WHEN A CHANGE IS MADE IN THE TARIFF RATE
APPLIED TO ITEMS WITHDRAWN.
2. SECTION A. OF SECRET/200/ADD. 12 INDICATES THAT PRIOR
TO WITHDRAWAL INFANT FOODS UNDER THE ABOVE TARIFF HEADINGS
WERE BOUND AT DUTY FREE. THE SAG APPARENTLY CHOSE TO
ACCORD THIS DUTY FREE TREATMENT BY MEANS OF A REBATE OF
DUTY UNDER GENERAL REBATE SCHEDULE NUMBER 412.06 IN
SCHEDULE 4 OF THE SOUTH AFRICAN CUSTOMS AND EXCISE ACT NO.
91 OF 1964, RATHER THAN EX-OUT ITEMS FOR INFANT FOODS
UNDER EACH OF THE ABOVE TARIFF HEADINGS. SOMETIME AFTER
1972 (EXACT DATE NOT ASCERTAINABLE IN WASHINGTON) THE
NOTIFICATION OF REBATE OF DUTY FOR IMPORTS OF INFANT FOOD
WAS DELETED FROM THE GENERAL REBATE SCHEDULE AS PUBLISHED
IN JACOBSENS CUSTOMS AND EXCISE TARIFF BOOK FOR SOUTH
AFRICA AND MUST THEREFORE BE ASSUMED TO BE DISCONTINUED.
WITHDRAWAL OF THE REBATE ON THIS FORMERLY BOUND ITEM
CONSTITUTES A TARIFF INCREASE ON INFANT FOODS. SUCH GOODS
SHOULD THEREFORE BE REMOVED FROM PARAGRAPH 3 OF SOUTH
AFRICAN IMPORT CONTROL REQUIRING THE ISSUANCE OF LICENSES
UNDER QUOTA FOR IMPORTATION AND PLACED ON THE LIST OF
COMMODITIES WHICH MAY BE IMPORTED UNDER OPEN GENERAL
LICENSE.
3. REQUEST THAT EMBASSY BRING THIS MATTER TO ATTENTION
OF SAG OFFICIALS FOR RECTIFICATION. KISSINGER
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