Post on 31-Aug-2018
transcript
EXPLORING OPPORTUNITIES IN THE SOUTH
AFRICAN MARKET FOR SRI LANKA’S EXPORTS
2008-2012
(Inclusive of January - July 2013 Export Data)
Prepared By: Export Development Board (EDB), Sri Lanka August 2013
ii Exploring Opportunities in the South African Market For Sri Lanka’s Exports
TABLE OF CONTENT
Table of Content i
List of tables v
List of figures viii
Executive summary x
1. Significance of the study 01
2. Objective of the study 01
3. Overview of the South African economy 01
3.1 Business environment in the South African market 02
3.2 Risk Assessment of the South African market 03
3.3 Logistic Performance of South Africa 04
4. Country comparison of South Africa and Sri Lanka in terms of Exports and Imports valuation 05
5. Performance of Sri Lanka’s exports to the South African market 05
5.1 Exports to world Vs Exports to South Africa by Sri Lanka 06
5.2 Sri Lanka’s share in South African market 06
6. Bilateral trade between Sri Lanka and South Africa 07
7. Products currently exported to South Africa with more opportunity to expand 09
7.1 Product wise analysis of selected export items 13
7.1.1 Coconut, Abaca, Ramie and other Fiber (HS 530500) 13
7.1.2 Solid or Cushioned tyres (HS 401290) 14
7.1.3 Natural rubber in other forms (HS 400129) 15
7.1.4 Cucumbers and Gherkins (HS 200110) 15
7.1.5 Lead Monoxide (HS 282410) 16
7.1.6 Black Tea- Tea Bags (HS 090230) 17
7.1.7 Cinnamon (HS 090611) 19
7.1.8 Black Tea- Bulk (HS 090240) 20
7.1.9Knitted Gloves covered with plastics of rubber (HS 611610) 20
7.1.10 Ornamental Fish – Live (HS 030110) 21
7.1.11 New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193) 21
7.1.12 Women/ Girls Suits of other textiles knitted or crocheted (HS 610469) 22
7.1.13 Activated Carbon (HS 380210) 23
iii Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.14 Surgical Gloves (HS 401511) 23
7.1.15 Women/ Girls Trousers or Breeches (HS 620469) 24
7.1.16 Tableware and Kitchenware (HS 691110) 25
7.1.17 Woven Fabrics (HS 540710) 25
7.1.18 Dresses of Synthetic rubber (HS 620443) 26
7.1.19 Gloves of Vulcanized rubber (HS 401519) 27
7.1.20 T-shirts, Singlets and other vests of cotton, knitted (HS 610910) 28
7.1.21 T-shirts, Singlets and other vests of other textile materials, knitted
(HS 610990) 28
7.1.22 Women/Girls Panties and Briefs Cotton, Knitted (HS 610821) 29
7.1.23 Brassieres and parts of Textile materials (HS 621210) 29
7.1.24 Technically Specified Natural Rubber - TSNR (HS 400122) 30
8. Potential exportable products to South African market 31
8.1 Rubber tires for buses or Lorries 32
8.2 Wheels including parts and accessories for motor vehicles 32
8.3 Tiles, cubes and glazed ceramics 33
8.4 Cuttle fish and squid 33
8.5 Rubber tire for motor car 34
8.6 Footwear-outer soles of rubber or plastics 34
9. Barriers to Trade 35
9.1 Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber
(HS 530500) 35
9.2 Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290) 36
9.3 Average tariff applied by South Africa for Natural rubber in other forms (HS 400129) 37
9.4 Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110) 38
9.5 Average tariff applied by South Africa for Lead Monoxide (HS 282410) 39
9.6 Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230) 40
9.7 Average tariff applied by South Africa for Cinnamon (HS 090611) 41
9.8 Average tariff applied by South Africa for Black Tea- Bulk (HS 090240) 42
9.9 Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber (HS 611610) 43
iv Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.10 Average tariff applied by South Africa for Ornamental Fish – Live (HS 030110) 44
9.11 Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial
handling vehicle (HS 401193) 45
9.12 Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or
crocheted (HS 610469) 46
9.13 Average tariff applied by South Africa for Activated Carbon (HS 380210) 47
9.14 Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511) 48
9.15 Average tariff applied by South Africa for Women/ Girls Trousers or Breeches
(HS 620469) 49
9.16 Average tariff applied by South Africa for Tableware and Kitchenware
(HS 691110) 50
9.17 Average tariff applied by South Africa for Woven Fabrics (HS 540710) 51
9.18 Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443) 52
9.19 Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519) 53
9.20 Average tariff applied by South Africa for T-shirts, Singlets and other vests of
cotton, knitted (HS 610910) 54
9.21 Average tariff applied by South Africa for T-shirts, Singlets and other vests of
other textile materials, knitted (HS 610990) 55
9.22 Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton,
Knitted (HS 610821) 56
9.23 Average tariff applied by South Africa for Brassieres and parts of Textile materials
(HS 621210) 57
9.24 Average tariff applied by South Africa for Technically Specified Natural Rubber
- TSNR (HS 400122) 58
10. Sri Lanka’s Exports to South Africa in the first two quarters of 2013 59
11. Conclusion 61
v Exploring Opportunities in the South African Market For Sri Lanka’s Exports
LIST OF TABLES
Table 1: Overview of the South African economy 01
Table 2: comparison of Doing Business rank 02
Table 3: Country comparison of South Africa and Sri Lanka in terms of Exports and Imports
Valuation 05
Table 4: Sri Lanka’s share in South African market 06
Table 5: Bilateral trade between Sri Lanka and South Africa 07
Table 6: Products currently exported to South Africa with more opportunity to expand 09
Table 7: Performance of Raw Coconut Fiber (HS 530500) in the South African market 13
Table 8: Performance of Solid tyres (HS 401290) in the South African market 14
Table 9: Performance of Cucumbers and Gherkins (HS 200110) in the South African market 16
Table 10: performance of Lead Monoxide (HS 282410) in the South African market over the
Period under review 17
Table 11: performance of Black Tea- Tea Bags (HS 090230) in the South African market 17
Table 12: performance of Cinnamon (HS 090611) in the South African market 19
Table 13: performance of Black Tea- Bulk (HS 090240) in the South African market 20
Table 14: Performance of Surgical Gloves of Rubber (HS 401511) in the South African market 23
Table 15: comparison of the world unit value with the unit values of the top exporters in
South African market 24
Table 16: performance of Tableware and Kitchenware (HS 691110) in the South African market
over the period under review 25
Table 17: Performance of Woven Fabrics (HS 540710) in the South African market 26
Table 18: performance of Other Gloves of rubber (HS 401519) in the South African market 27
vi Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Table 19: comparison of the world unit value with the unit values of the top nine exporters
in South African market 29
Table 20: Potential exportable products to South African market 31
Table 21: Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber
(HS 530500) 35
Table 22: Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290) 36
Table 23: Average tariff applied by South Africa for Natural rubber in other forms
(HS 400129) 37
Table 24: Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110) 38
Table 25: Average tariff applied by South Africa for Lead Monoxide (HS 282410) 39
Table 26: Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230) 40
Table 27: Average tariff applied by South Africa for Cinnamon (HS 090611) 41
Table 28: Average tariff applied by South Africa for Black Tea- Bulk (HS 090240) 42
Table 29: Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber
(HS 611610) 43
Table 30: Average tariff applied by South Africa for Ornamental Fish 44
Table 31: Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial
handling vehicle (HS 401193) 45
Table 32: Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or
crocheted (HS 610469) 46
Table 33: Average tariff applied by South Africa for Activated Carbon (HS 380210) 47
Table 34: Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511) 48
Table 35: Average tariff applied by South Africa for Women/ Girls Trousers or Breeches
(HS 620469) 49
Table 36: Average tariff applied by South Africa for Tableware and Kitchenware (HS 691110) 50
vii Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Table 37: Average tariff applied by South Africa for Woven Fabrics (HS 540710) 51
Table 38: Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443) 52
Table 39: Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519) 53
Table 40: Average tariff applied by South Africa for T-shirts, Singlets and other vests of cotton,
knitted (HS 610910) 54
Table 41: Average tariff applied by South Africa for T-shirts, Singlets and other vests of other
textile materials, knitted (HS 610990) 55
Table 42: Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton,
Knitted (HS 610821) 56
Table 43: Average tariff applied by South Africa for Brassieres and parts of Textile materials
(HS 621210) 57
Table 44: Average tariff applied by South Africa for Technically Specified Natural Rubber –
TSNR (HS 400122) 58
Table 45: Comparison of Sri Lanka’s Exports to South Africa in the first and second quarters
of 2013 with the exports in first and second quarters of 2012 (including the July data) 59
viii Exploring Opportunities in the South African Market For Sri Lanka’s Exports
LIST OF FIGURES
Fig 1.0: Risk Assessment of the South African market 03
Fig. 2.0: Logistic Performance scores of South Africa 04
Fig 3.0: Performance of Sri Lanka’s exports in the South African market 05
Fig 4.0: Exports to world Vs Exports to South Africa by Sri Lanka 06
Fig 5.0: Sri Lanka's Share in the South African Market % 07
Fig 6.0: Bilateral Trade between Sri Lanka and South Africa 08
Fig 7.0 Major Suppliers of Solid Tyres to South Africa in 2012 14
Fig 8.0 Log diagram of the Natural rubber in other forms (HS 400129) 15
Fig 9.0 Major suppliers of Cucumber & Gherkins to South Africa 15
Fig 10.0 Major Suppliers of Lead Monoxide to South Africa in 2012 16
Fig 11.0 Sri Lanka's exports of Black Tea in bulk and Black Tea bags to South Africa 18
Fig.12.0 Actual Vs Potential exports of Cinnamon to South Africa from Sri Lanka 19
Fig 13.0 Log diagram of the actual and potential exports of Knitted Gloves covered with
plastics of rubber 21
Fig 14.0 Log diagram of the actual and potential exports of Ornamental Fish – Live 21
Fig 15.0 Log diagram of the actual and potential exports of Pneumatic Tires of Rubber 22
Fig 16.0 Exports performance of Women/ Girls Suits of other textiles knitted or crocheted in
South African market 22
Fig 17.0 Log diagram of the actual and potential exports of Activated Carbon 23
Fig 18.0 Comparison of prices received by top ten exporting countries for Woven Fabrics in
South Africa 26
ix Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Fig 19.0 Exports performance of Dresses of Synthetic rubber (HS 620443) in South African market 27
Fig 20.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of
cotton, knitted 28
Fig 21.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of other
textile materials, knitted 28
Fig 22.0 Log diagram of the actual and potential exports of Women/Girls Panties and Briefs Cotton,
Knitted 29
Fig 23.0 Log diagram of the actual and potential exports of Brassieres (HS 621210) 30
Fig 24.0 Log diagram of the actual and potential exports of Technically Specified Natural Rubber
- TSNR 30
Fig 25.0 Total Imports of Rubber tires for buses or lorries to South Africa 32
Fig 26.0 Total Imports of Wheels including parts and accessories for motor vehicles to
South Africa 32
Fig 27.0 Total Imports of Tiles, cubes and glazed ceramics to South Africa 33
Fig 28.0 Total Imports of Cuttle fish and squid to South Africa 33
Fig 29.0 Total Imports of Rubber tire for motor car to South Africa 34
Fig 30.0 Total Imports of Footwear-outer soles of rubber or plastics 34
x Exploring Opportunities in the South African Market For Sri Lanka’s Exports
EXECUTIVE SUMMARY
It has been brought in to focus that our export markets are not sufficiently diversified to minimize the
dependency on a few large exports markets; where at present EU and USA together absorb more than
50% of the country’s total exports. This analysis was carried out to fulfill the main objective of
identifying South Africa as a potential export destination for Sri Lanka. Considering the inadequacy of
research work done in this area, the Policy and Strategic Planning Division felt it necessary to fill this gap
by identifying products with considerable potential to cater to the South African market. A major
objective of the EDB is to increase exports to markets other than EU and USA by over 50% by 2015,
while consolidating the market position in the EU and USA. Therefore this study was carried out to fulfill
the main objective of exploring opportunities in the South African market for Sri Lankan exports. It is
believed that this effort would be useful to all the divisions to plan their future proceedings.
The key findings of this research work are summarized below.
During the year 2013, South Africa’s rank has been elevated from 41st to 39th rank in the Ease of
Doing Business index published by the World Bank. Furthermore, according to the ONDD (Office
National Du Ducroire) which is a world recognized organization which helps exporters, companies
investing abroad and banks to succeed and grow, by managing risks and insuring overseas
transactions, the risk of doing businesses with South Africa is much low in terms of the factors such
as Political Risk, Commercial Risk, War Risk, Risk of Government Action and Transfer Risk.
The logistics performance (LPI) of South Africa is favorable and acceptable for Sri Lanka to trade
businesses with South Africa. The logistics performance (LPI) is the weighted average of the country
scores on six key dimensions, which is explained in the report in detail.
Sri Lankan exports to South Africa were increasing continuously over the selected time period. Our
exports revenue from South Africa did not change during 2009 even though the world financial crisis
prevailed during the same year.
Sri Lanka caters for a small share in the South African market. Sri Lanka’s share in the South African
market has been increased after 2008 and thereafter Sri Lanka managed to retain that share in the
South African market.
During 2012, Sri Lanka had a trade surplus of US $ 3 million with South Africa.
25 major products currently exported to South Africa have more opportunity to expand and further 6
products have been identified as potential exportable products which are not currently exported to
South Africa by Sri Lanka. However Sri Lanka exports of those potential products which are exported
to other countries and are in high demand in South Africa as well.
xi Exploring Opportunities in the South African Market For Sri Lanka’s Exports
For example, out of all the products exported to South Africa, Black Tea in bulk generates high export
revenue to Sri Lanka in the South African market. But it attracts a unit value of only US $ 3,676 per
tonne where as value added product of Black Tea which in the form of tea bags are paid a unit value of
US $ 19,077 per tonne. Also the average unit value of Black Tea bags has been increasing by 14%
where as the average unit value of Black Tea in bulk has been increasing by a relatively lower rate of
6% in the South African market during the period under review. Therefore it is recommended that Sri
Lanka should increase its exports of value added Black tea to South Africa and reduce exports of Black
Tea in bulk.
Sri Lanka is the 2nd largest supplier of Cinnamon to South Africa with a market share of 16% in 2012,
Sri Lanka exported US $ 99,220 worth of cinnamon to South Africa. Sri Lankan cinnamon attracts a
premium unit value of US $ 13,778 per tonne where as the average unit value of cinnamon is US $
1,565 in the South African market.
Sri Lanka is the largest supplier of solid tyres to the South African market. We have a market share of
34% and Sri Lanka, India, China and France together dominates the South African market by having a
combined market share of 80% for this product.
For products such as Surgical Gloves of Rubber (HS 401511), Gloves of Vulcanized rubber (HS 401519)
and for some textile products, Sri Lanka receives a premium unit value and caters for niche markets in
South Africa. Therefore it is recommended that Sri Lanka should increase its exports of these products
and capture a higher market share of this niche market.
Sri Lanka is the market leader for Raw Coconut Fiber (HS 530500) in the South African market. Sri
Lanka dominates the market for Raw Coconut Fiber by having a market share of 58.58%. The unit
value we receive is almost similar to the average unit value registered in the South African market.
However countries such as China, Brazil and Kenya receive a high unit value for this product category.
Therefore it is recommended that while continuing to cater to the mass market, Sri Lanka should focus
on to cater for the niche markets existing in the South Africa through the process of value addition.
For Woven Fabrics (HS 540710) the average unit value is US $ 8,663 per tonne. But Sri Lanka receives
a premium unit value of US $ 56,500 which is the highest unit value received by any country exporting
this product to South Africa. This stress the fact that our Woven Fabric is well accepted as a high
quality product and it might be catering for a niche market. There for Sri Lanka should increase its
supply of Woven Fabrics to reap the maximum potential export revenue.
The average unit value for Brassieres and parts of Textile materials (HS 621210) is US $ 22,103 per
tonne. But Sri Lanka receives a premium unit value of US $ 70,500 per tonne which is the second
highest price received by any country exporting this product to South Africa. There for Sri Lanka
should increase its supply of it to generate the maximum potential export revenue.
xii Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Sri Lanka is the 2nd largest supplier of Lead Monoxide (HS 282410) and holds a market share of 16% in
the South African market. The average unit value for this product category is US $ 2528 per tone and
Sri Lanka receives an average unit value of US $ 2571 per tone. The export value of this product to
South Africa from Sri Lanka was growing as at rate of 15% during the period of 2008 to 2012.
For textile products, Sri Lanka faces a very high tariff rate of 45% and that industry is highly protected
by South Africa. Therefore it is recommended that Sri Lanka should try to start discussing the
possibilities of getting a preferential access to South African market.
1 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
1. SIGNIFICANCE OF THE STUDY South Africa is considered as one of the rapid growing markets in the present world. It is also a
member of the BRICS group. It is a known fact that our exports are very much dependant on
European and USA markets. The problems currently existing in these markets have a direct negative
impact on our exports and on the economic growth of Sri Lanka as exports contribute nearly 17% to
the country’s GDP. Therefore in order to diversify our exports markets, it is necessary to carry out
market research on new markets that are performing well in the current world.
2. OBJECTIVE OF THE STUDY Lack of diversity in our export markets is a major concern, and the turmoil in these regions have
restricted our capacity to expand our exports owing to the high dependency on these markets, where
at present EU and USA together absorb more than 50% of the country’s total exports. A major
objective of the EDB is to increase exports to markets other than EU and USA by over 50% by 2015,
while consolidating the market position in the EU and USA. Therefore this study was carried out to
fulfill the main objective of exploring opportunities in the South African market for Sri Lankan
exports. An attempt has been made to identify potential products, the main barriers for the Sri
Lankan exporters, a detailed analysis about the prevailing tariff rates, etc. in South Africa.
3. OVERVIEW OF THE SOUTH AFRICAN ECONOMY
Table 1: Overview of the South African economy
Sources: World Bank Data & CIA fact book
Name
Republic of South Africa
Land Area 1,221,037 km2
Population (2011)
51,770,560
Language
Eleven languages are used in South Arica. English is commonly used in Business, Politics and Media.
Currency
Rand (ZAR)
Exchange Rate (June 2013) US$ 1.00 = ZAR 9.77
Per Capita GDP –PPP current (2012) US$ 11,440
Trade (2012)
Exports – $101.2 billion (2012 est.) Imports – $106.8 billion (2012 est.) Balance – US$ -5.6 billion Total Trade – US$ 208 billion
Reserves of foreign exchange and gold $54.98 billion (31 December 2012 est.)
Stock of direct foreign investment - at home $162.9 billion (31 December 2012 est.)
Inflation ( 2012) 5.4%
GDP - real growth rate 2.5 % (2012 )
2 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
3.1. Business environment in the South African market
South Africa belongs to the region of Sub- Saharan Africa and it is categorized as an upper middle
income country with a GDP per capita of US$ 7,951.139 (in 2011). The following table compares the
data for “Doing Business “in 2013 for South Africa and for Sri Lanka among 185 countries in the
world. These data has been taken from the World Bank’s Doing Businesses index which provides
objective measures of business regulations and their enforcement across 185 economies.
Table 2: comparison of Doing Business rank
Country Doing business 2013 Rank
Doing business 2012 Rank
Change in Rank
South Africa
39
41
2
Sri Lanka
81
96
15
Source: http://www.doingbusiness.org
The above data suggests that South Africa is ranked as 39th among 185 countries according to the
ease of doing business. During the year of 2013, South Africa’s rank has been lifted from 41st to 39th.
Doing Business rank of Sri Lanka has also been lifted to 81st in 2013 from 96th in 2012.
3 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
3.2. Risk Assessment of the South African market
The following risk assessment was done using the ONDD (Office national du ducroire) statistics which
is one of the reliable sources of risk assessment data. According to the ONDD statistics the following
figure shows that the risk of doing businesses with South Africa is much low in terms of the
categories such as Political Risk, Commercial Risk, War Risk, Risk of Government Action and Transfer
Risk.
Fig 1.0 Risk Assessment of the South African market
According to Coface, which is another world recognized organization of obtaining country risk
assessment data; South Africa is considered as an A3 country, suggesting that the country risk is low
and acceptable for doing businesses.
Risk
increases
from 1 to 7
A - Low commercial risk B - Normal commercial risk C - High risk commercial risk
4 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
3.3. Logistic Performance of South Africa
The logistics performance (LPI) is the weighted average of the country scores on six key dimensions. Each dimension is given a scale from 1 to 5, where 1 represents poor and 5 represents a high performance.
Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs
Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology)
Ease of arranging competitively priced shipments
Competence and quality of logistics services (e.g., transport operators, customs brokers)
Ability to track and trace consignments
Timeliness of shipments in reaching destination within the scheduled or expected delivery time.
The following diagram shows the logistic performance of the South Africa in 2012. It shows that for the selected six dimensions, South Africa’s performance lies between 5 and 3, which suggests that South Africa is performing well in terms of the key dimensions mentioned above.
Fig. 2.0 Logistic Performance scores of South Africa
1
2
3
4
5LPI
Customs
Infrastructure
InternationalShipments
LogisticCompeetence
Tracking & Tracing
Timeliness
5 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
4. COUNTRY COMPARISON OF SOUTH AFRICA AND SRI LANKA IN
TERMS OF EXPORTS AND IMPORTS VALUATION
The following table compares the valuation method of exports and imports between South Africa and
Sri Lanka based on 2011 data.
Table 3: Country comparison of South Africa and Sri Lanka in terms of Exports and Imports valuation
Country Valuation of Exports Valuation of Imports
Sri Lanka FOB CIF
South Africa FOB CIF
Source: http://comtrade.un.org
5. PERFORMANCE OF SRI LANKA’S EXPORTS TO THE SOUTH AFRICAN
MARKET The following diagram shows that during the period 2008 to 2012, exports to South Africa from Sri Lanka
has been increased by a rate of 17%. The trends of Sri Lankan exports to South Africa were increasing
over the selected time period. Furthermore our exports to South Africa haven’t got affected during 2009
even though the world financial crisis was prevailing during the same year. From 2009 to 2011, our
exports have been increased by US $14 million which is an 88% increase in export revenue.
Source: Sri Lanka Customs
16 16
20
30
26
0
5
10
15
20
25
30
35
2008 2009 2010 2011 2012
US
$ M
illio
n
Year
Fig 3.0 Performance of Sri Lanka’s exports in the South African market
6 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
5.1. Exports to world Vs Exports to South Africa by Sri Lanka
Following log diagram compares Sri Lanka’s exports to the world and exports to South Africa from Sri
Lanka. It can be noticed that our exports to South Africa was growing continuously irrespective to the
decline in 2012 while our exports to world shows a mixed growth pattern which is almost stagnated.
Source: Sri Lanka Customs
5.2. Sri Lanka’s share in South African market
The following table illustrates Sri Lanka’s share in the South African market and for each year from
2008 to 2012. It should be noticed that Sri Lanka caters only for a small share in the South African
market.
Table 4: Sri Lanka’s share in South African market
2008 2009 2010 2011 2012 Avg. Annual Rate of Growth
Total size of the South Africa import market US$ millions
87,593 63,766 80,139 99,726 101,611 7.4%
Sri Lanka exports to South Africa US$ millions – CIF terms
16 16 20 30 26 16%
Sri Lanka’s share in South Africa market 0.0183% 0.0251% 0.0250% 0.0301% 0.0256%
-
8,175 7,122 8,409 10,017 9,260
16 16 20 30 26
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
Fig 4.0 Exports to world Vs Exports to South Africa by Sri Lanka
Exports to World
Exports to South Africa
7 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
The following diagram graphically illustrates Sri Lanka's Share in the South African Market. It shows
that the Sri Lanka’s market share is growing and shows an increasing trend in the South African
market.
Source: Sri Lanka Customs and ITC data
6. BILATERAL TRADE BETWEEN SRI LANKA AND SOUTH AFRICA
In 2008 and 2009 Sri Lanka registered a trade deficit of US $8 million and US $2 million with South
Africa respectively. However during 2011, Sri Lanka had a trade surplus of US $ 2 million. Thereafter
in 2011 a further trade deficit of US $ 6 million was registered in the South African market. During
2012, the trade balance turned in Sri Lanka’s favour registering a trade surplus of US $ 3 million
which is illustrated in the following table.
Table 5: Bilateral trade between Sri Lanka and South Africa
2008 2009 2010 2011 2012
Exports to South Africa 16 16 20 30 26
Imports from South Africa 24 18 18 36 23
Total Trade 40 38 38 66 49
Balance of Trade -8 -2 2 -6 3 Source: Sri Lanka Customs
0.00%
0.01%
0.01%
0.02%
0.02%
0.03%
0.03%
0.04%
2008 2009 2010 2011 2012
Mar
ket
shar
e %
Years
Fig 5.0 Sri Lanka's Share in the South African Market %
Trend Line
Actual Share
8 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Following diagram shows the pattern of trade (imports & exports) between Sri Lanka and South
Africa.
Source: Sri Lanka Customs
0
5
10
15
20
25
30
35
40
2008 2009 2010 2011 2012
US
$ M
illio
ns
Years
Fig 6.0 Bilateral Trade between Sri Lanka and South Africa
Exports to South Africa
Imports from South Africa
Trade Surplus of US $3 Million
9 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7. PRODUCTS CURRENTLY EXPORTED TO SOUTH AFRICA WITH MORE
OPPORTUNITY TO EXPAND
Following table summarizes the position of some selected Sri Lankan products which are currently
exported to South African market. These products are selected since they have more opportunity for
expansion in the South African market.
Table 6: Products currently exported to South Africa with more opportunity to expand
Product
Total Imports to
South Africa (US$ ‘000)
Exports by Sri Lanka to South Africa (US$ ‘000)
% Contribution Of Sri Lanka
Sri Lanka’s Rank among the competing countries
Top ten competitors
Coconut ,Abaca, Ramie and other Fiber (HS 530500)
2,244
1,314.52
58.58%
1
Brazil , India , China, Philippines ,USA, Kenya, Mozambique, Bangladesh , Israel, Ireland
Solid or Cushioned tyres (HS 401290)
16,157
5,386.60
33.34%
1
India , China , France , Germany, Italy , Brazil , Republic of Korea, Thailand, Netherlands, Malaysia
Natural rubber in other forms (HS 400129)
8,602
2,006.93
23.33%
2
Malawi , China, India , United Kingdom , USA, Chinese Taipei , Italy , Spain, Sweden , Brazil
Cucumber and Gherkins (HS 200110)
1,526
286.50
18.77%
2
Germany , Hungary, India , Viet Nam , Belgium, China , Spain, France, Netherlands , Poland
Lead Monoxide (HS 282410)
1,514
241.88
15.98%
2
Chinese Taipei, Australia , China, France , USA, Belgium , Brazil, Germany , Indonesia, Malaysia
10 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Product Total Imports to
South Africa (US$ ‘000)
Exports by Sri Lanka to South Africa (US$ ‘000)
% Contribution Of Sri Lanka
Sri Lanka’s Rank
among the competing countries
Top ten competitors
Black Tea- Tea Bags HS 090230
1,464
230.13
15.72%
3
Netherlands , United Kingdom, Poland , India , China , Zimbabwe, Singapore , United, Arab Emirates, Germany , Hungary
Cinnamon HS 090611
651
99.22
15.24%
2
China , Philippines, Singapore, Indonesia, Hong Kong, China , India, Malaysia, Netherlands , Viet Nam , Australia
Black Tea- Bulk HS 090240
46,116
6,768.76
14.68%
2
Malawi , United Republic of Tanzania , Zimbabwe , Kenya, Poland , Area Nes India , USA, Germany , Indonesia
Knitted Gloves covered with plastics of rubber (HS 611610)
9,763
1,250.69
12.81%
2
China , Bangladesh, Pakistan , Malaysia, Germany , Republic of Korea , USA, Hong Kong, China, Portugal ,Indonesia
Ornamental Fish – Live (HS 030110)
2,186
151.37
6.92%
4
Singapore , Israel, Indonesia , Malaysia , Chinese Taipei , Thailand, Kenya , Japan USA, China
New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193)
6,639
349.69
5.27%
5
India , China, Romania , France, Czech Republic , USA, Germany, Australia , Mexico, Netherlands
11 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Product Total Imports to
South Africa (US$ ‘000)
Exports by Sri Lanka to South Africa (US$ ‘000)
% Contribution Of Sri Lanka
Sri Lanka’s Rank
among the competing countries
Top ten competitors
Women/ Girls Suits of other textiles knitted or crocheted (HS 610469)
3,141
136.21
4.34%
19
China , Mauritius, Viet Nam, Cambodia, Bangladesh , Italy, Malaysia , Turkey, Indonesia , Hong Kong, China
Activated Carbon (HS 380210)
19,056
633.81
3.33%
6
India , Philippines, China , Indonesia, Thailand , USA, Germany , Viet Nam , Australia, Belgium
Surgical Gloves (HS 401511)
21,208
618.45
2.92%
4
Malaysia , Thailand, China , India, Indonesia , USA, Austria , France, Italy , United Kingdom
Women/ Girls Trousers or Breeches (HS 620469)
7,457
184.71
2.48%
16
China , Bangladesh, Turkey , India , Italy, Viet Nam, Hong Kong, China USA, France , Spain
Tableware and Kitchenware (HS 691110)
27,716
343.64
1.24%
2
China , Germany Indonesia , Hong Kong, China , United Kingdom, Thailand , Portugal, India , France , Italy
Woven Fabrics (HS 540710)
8,169
97.25
1.19%
7
USA, Chinese Taipei, China, Republic of Korea, Germany , Italy, Indonesia , United Kingdom , Thailand, Netherlands
Dresses of Synthetic rubber (HS 620443)
13,387
105.45
0.79%
21
China , India , Spain USA, Turkey , United Kingdom, France , Viet Nam, Italy , Morocco
12 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Product Total Imports to
South Africa (US$ ‘000)
Exports by Sri Lanka to South Africa (US$ ‘000)
% Contribution Of Sri Lanka
Sri Lanka’s Rank
among the competing countries
Top ten competitors
Gloves of Vulcanized rubber (HS 401519)
13,346
78.61
0.59%
9
Malaysia , China, Thailand , US, United Kingdom, Germany , Indonesia , Chinese Taipei ,India , France
T-shirts, Singlets and other vests of cotton, knitted (HS 610910)
115,773
632.18
0.55%
13
Mauritius , China, Madagascar , India, Bangladesh , Turkey , Tanzania, USA, Portugal, Thailand
T-shirts, Singlets and other vests of other textile materials, knitted (HS 610990)
56,356
218.01
0.39%
10
China , Mauritius, Indonesia , Thailand , Turkey, Bangladesh , India, Viet Nam, Philippines, Cambodia
Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)
14,762
52.78
0.36%
4
China , India, Bangladesh, Mauritius , USA, Indonesia , Spain, Cambodia , Malaysia , Portugal
Brassieres and parts of Textile materials (HS 621210)
39,830
139.88
0.35%
4
China , Viet Nam, France ,Netherlands, Philippines, Thailand , Hong Kong, China, Slovakia USA, Germany
Technically Specified Natural Rubber - TSNR (HS 400122)
157,115
353.55
0.23%
15
Indonesia , Malaysia , Singapore , Nigeria, Côte d'Ivoire, Philippines, Thailand , Viet Nam, Guinea, Liberia
Source: Sri Lanka Customs and ITC
13 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1 Product wise analysis of selected export items
A more detailed analysis of products mentioned under section 11.0 is given below.
7.1.1 Coconut ,Abaca, Ramie and other Fiber (HS 530500)
Sri Lanka is the market leader for this product in the South African market. Sri Lanka dominates
the market for this product category by having a market share of 58.58%. The price we receive is
almost similar to the average market price registered in the South African market. However
countries such as China, Brazil and Kenya receive a high price for this product category.
Therefore it is recommended that while continuing to cater to the mass market, Sri Lanka
should focus on catering for the niche markets existing in the South Africa through the process
of value addition.
Following table illustrates the export performance of Sri Lanka for this product in the South
African market during the selected time period.
Table 7: Performance of Raw Coconut Fiber (HS 530500) in the South African market
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
1,304 1,123 1,792 1,989 2,244 16.5
Exports by Sri
Lanka to South
Africa(US$ ‘000)
860
655
832
1,021
1,315 12.9
Sri Lanka’s share 65.95% 58.33% 46.43% 51.33% 58.60% -
Source: Sri Lanka Customs and ITC Data base
14 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.2 Solid or Cushioned tyres (HS 401290)
Sri Lanka is the largest supplier of solid tyres to the South African market. We have a market
share of 33.34% and as shown below Sri Lanka, India, China and France together dominates the
South African market by having an 80% market share for this product.
Source: Source: Sri Lanka Customs and ITC Data base
The average price of Solid Tyres in the South African market is US $ 3,297 per tone but Solid
Tyres produced by Sri Lanka receives an average price of US $ 3,393 which is well above the
average market price.
Following table illustrates the export performance of Sri Lanka in the South African market
during the selected time period.
Table 8: Performance of Solid tyres (HS 401290) in the South African market
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
8,580 8,160 11,951 15,853 16,157 19.3
Exports by Sri
Lanka to South
Africa(US$ ‘000)
3,078
3,153
4,359
6,810
5,387 18.8
Sri Lanka’s share 35.87% 38.64% 36.47% 42.96% 33.34% -
Source: Sri Lanka Customs and ITC Data base
Sri Lanka 33.3%
India 18%
China 14%
France 13%
Others 20%
Fig 7.0 Major Suppliers of Solid Tyres to South Africa in 2012
15 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.3 Natural rubber in other forms (HS 400129)
Sri Lanka is the 2nd largest supplier of this product in the South African market. The average unit
value for this product category is US $ 3,376 per tonne. But Sri Lanka receives a unit value of US
$ 5,505 per tonne which is well above the average unit value registered in South African market.
This stresses the fact that our exports of this product are well accepted as a quality product and
we might be catering for the needs of a niche market. Therefore Sri Lanka should increase its
supply of it to generate the maximum potential export revenue. The diagram below compares
the actual and potential exports of this product to South African market by Sri Lanka.
Source: Sri Lanka Customs and ITC Data base
7.1.4 Cucumbers and Gherkins (HS 200110)
Sri Lanka is the 2nd largest supplier of this product category to South African market and has a
market share of 19% in the South African market. As shown below Germany, Sri Lanka and
Hungary together dominates the South African market by having over 80% market share for
this product.
Source: Source: Sri Lanka Customs and ITC Data base
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 8.0 Log diagram of the Natural rubber in other forms (HS 400129)
Export Potential for SriLanka
Actual Exports of SriLanka
Germany
Sri Lanka
Hungary
Others
Fig 9.0 Major suppliers of Cucumber & Gherkins to South Africa
16 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Following table illustrates the export performance of Sri Lanka in the South African market
during the selected time period. One of the main reasons for the decline in the Sri Lanka’s
market share is the arrival of India, Viet Nam and Belgium as exporters of Cucumbers and
Gherkins to the South African market.
Table 9: Performance of Cucumbers and Gherkins (HS 200110) in the South African market
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
721 736 803 1,254 1,526 20.3
Exports by Sri
Lanka to South
Africa(US$ ‘000)
214
336
299
330
287 5.6
Sri Lanka’s share 29.68% 45.65% 37.24% 26.32% 18.81% -
Source: Sri Lanka Customs and ITC Data base
7.1.5 Lead Monoxide (HS 282410)
Sri Lanka is the 2nd largest supplier of Lead Monoxide (HS 282410) and holds a market share of 16% in the South African market. The average unit value for this product category is US $ 2528 per tone and Sri Lanka receives an average unit value of US $ 2571 per tone. The export value of this product to South Africa from Sri Lanka was growing as at rate of 79.2% during the period of 2008 to 2012.
Source: Sri Lanka Customs and ITC Data base
Fig 10.0 Major Suppliers of Lead Monoxide to South Africa in 2012
Thaipai 62.3%
Sri Lanka 16%
Australia 12.4%
China 4.9% Others
17 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Following table compares the performance of this product in the South African market over the
period under review.
Table 10: performance of Lead Monoxide (HS 282410) in the South African market over the
period under review
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to South
Africa (US$ ‘000) 1,313 752 1,256 1,402 1,514
9
Exports by Sri Lanka to
South Africa(US$ ‘000) -
20 105 165 242 79.3
Sri Lanka’s share 0.00% 2.66% 8.36% 11.77% 15.98% -
Source: Sri Lanka Customs and ITC Data base
7.1.6 Black Tea- Tea Bags (HS 090230)
Sri Lanka is the 3rd largest exporter of the above mentioned product to the South African market
and had a market share of 16% in 2012 in the South African market. Total imports of the Black
Tea bags to South African market were declining during the period under review. Sri Lankan
exporters have concentrated more in exporting Black Tea in Bulk than exporting value added
Black Tea.
The following table illustrates the performance of Sri Lanka’s Black Tea bags in the South African
market.
Table 11: performance of Black Tea- Tea Bags (HS 090230) in the South African market
2008 2009 2010 2011 2012 Avg. growth
rate 2008-2012
(%)
Total imports to South Africa (US$ ‘000)
697 792 1,134 1,845 1,464 23.3%
Exports by Sri Lanka to
South Africa(US$ ‘000)
463 619 566 224 230 -24%
Sri Lanka’s share 66.43% 78.16% 49.91% 12.14% 15.71% -
Source: Sri Lanka Customs and ITC Data base
18 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
The average price for the product in South Africa is US $ 9695 per tonne. However Sri Lankan
Black tea in the form of tea bags is offered a unit price of US $ 19,077 per tonne which is twice
as high as the average market price in South Africa. Furthermore the average price of the
product has increased by 14% in the South African market during the period under review.
Therefore it can be concluded that our Black Tea in the form of tea bags are paid a premium
price in the South African market and that price is also increasing over time as well.
Key findings: As an individual product, Black Tea in bulk generates a high export revenue to Sri
Lanka in the South African market. But it is paid a unit price of US $ 3,676 per tonne where as
value added products of Black Tea which is in the form of tea bags are paid a unit price of US $
19,077 per tonne. Also the average price of Black Tea bags has been increasing by 14% where as
the average price of Black Tea in bulk has been increased by a relatively lower rate of 6% in the
South African market during the period under review. Therefore it is recommended that Sri
Lanka should attempt to increase its exports of value added Black tea to South Africa and reduce
exports of Black Tea in bulk. The following figure compares the Sri Lanka's exports of Black Tea
in bulk and Black Tea bags to South African market.
Source: Sri Lanka Customs and ITC Data base
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 11.0 Sri Lanka's exports of Black Tea in bulk and Black Tea bags to South Africa
Exports of Black TeaBulk
Exports of Black TeaBag
19 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.7 Cinnamon (HS 090611)
Sri Lanka is the 2nd largest supplier of this product to South Africa registering a market share of
16% in the South African market in 2012. Sri Lanka exported US $ 99,220 worth of cinnamon to
South Africa. Sri Lankan cinnamon is paid a premium price of US $ 13,778 per tone where as the
average price of cinnamon is US $ 1,565 in the South African market.
Following table illustrates the export performance of Sri Lankan Cinnamon in the South African
market during the selected time period.
Table 12: performance of Cinnamon (HS 090611) in the South African market
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
505 343 399 548 651 9.7
Exports by Sri
Lanka to South
Africa(US$ ‘000)
62 - 2 62 99
50.6
Sri Lanka’s share 12.28% 0.00% 0.50% 11.31% 15.21% -
Source: Sri Lanka Customs and ITC Data base
Following diagram shows that the potential export of cinnamon to South Africa from Sri Lanka is
very high and the gap between actual and potential is getting widened. Therefore Sri Lanka
should focus on increasing exports of cinnamon to South African market.
Source: Sri Lanka Customs and ITC
0
100
200
300
400
500
600
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig.12.0 Actual Vs Potential exports of Cinnamon to South Africa from Sri Lanka
Actual Exports
Potential Exports
20 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.8 Black Tea- Bulk (HS 090240)
Among all the products exported by Sri Lanka to South Africa, Black Tea earns the highest
revenue and in 2012 Sri Lanka has exported US $ 6.8 million worth of Black tea in bulk to South
Africa. Sri Lanka is the 2nd largest exporter of the above mentioned product to the South African
market
Table 13: performance of Black Tea- Bulk (HS 090240) in the South African market
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
26,248 38,400 44,506 40,547 46,116 11.8
Exports by Sri
Lanka to South
Africa(US$ ‘000)
1,673 2,830 4,248 5,460 6,769
34.5
Sri Lanka’s share 6.37% 7.37% 9.54% 13.47% 14.68% -
Source: Sri Lanka Customs and ITC Data base
7.1.9 Knitted Gloves covered with plastics of rubber (HS 611610)
Sri Lanka is the 2nd largest supplier of this product category and we have captured a 13% market
share in the South African market in 2012 .The unit value by Sri Lanka is US $ 24,783 per tonne
on average which is well above the average market price of US $ 6,994 per tonne. Sri Lanka’s
exports of this product in terms of value were growing at a rate of 34.5 % from 2008 to 2012 in
the South African market. This suggests that Sri Lanka is capable of increasing its market share in
the future. The high price received by Sri Lanka for this product highlights the fact that we are
obtaining a premium price may be for the quality and the reliability of the product. Therefore it
is recommended that Sri Lanka should increase its exports of the product and capture a higher
market share in the South African market.
The diagram below compares the actual and potential exports of this product to South African
market by Sri Lanka.
21 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Source: Sri Lanka Customs and ITC Data base
7.1.10 Ornamental Fish – Live (HS 030110)
Sri Lanka is the 4th largest supplier of Live Ornamental fish to South Africa and holds a market
share of 7% in the South African market. The average unit value for Sri Lanka’s exports of this
product category has been increasing by 13% during the selected time period. The log diagram
below compares the actual and potential exports of this product to South African market by Sri
Lanka.
Source: Sri Lanka Customs and ITC Data base
7.1.11 New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193)
Sri Lanka is the 5th largest supplier of this product category and currently holds a market share of
5.2% in the South African market. The average unit value received by Sri Lanka for this product
category is US $ 196 per unit which is above the average unit value of US $ 188 per unit for this
product category in the South African market. Furthermore Sri Lanka’s exports of this product in
value were growing at a rate of 31 % from 2011 to 2012 in the South African market. The log
diagram below compares the actual and potential exports of this product to South African
market by Sri Lanka.
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 13.0 Log diagram of the actual and potential exports of
Knitted Gloves covered with plastics of rubber
Export Potential forSri Lanka
Actual Exports ofSri Lanka
1
10
100
1,000
10,000
2008 2009 2010 2011
US
$ T
ho
usa
nd
s
Years
Fig 14.0 Log diagram of the actual and potential exports of Ornamental Fish – Live
Export Potential forSri Lanka
Actual Exports of SriLanka
22 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Source: Sri Lanka Customs and ITC
7.1.12 Women/ Girls Suits of other textiles knitted or crocheted (HS 610469)
The unit value received by Sri Lanka for this product is US $ 8.82 per unit on average which is
well above the average unit value of US $ 1.79 per unit. According to Sri Lanka customs our
exports of this product in value were growing at a rate of 63.1 % from 2008 to 2012 in the South
African market.
The diagram below compares export performance of Women/ Girls Suits of other textiles
knitted or crocheted in South African market
Source: Sri Lanka Customs
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 15.0 Log diagram of the actual and potential exports of Pneumatic Tires of Rubber
Export Potential forSri Lanka
Actual Exports of SriLanka
28 22 40
278
185
0
50
100
150
200
250
300
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Fig 16.0 Export performance of Women/ Girls Suits of other textiles knitted or crocheted in South African market
Trend Line
23 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.13 Activated Carbon (HS 380210)
Sri Lanka is the 6th major supplier of this product and holds a market share of 3.33 % in the
South African market. Furthermore Sri Lanka’s exports of this product in value were growing at a
rate of 208% from 2011 to 2012 in the South African market. The average unit value received by
Sri Lanka has been increasing by nearly 23% during the selected time period. The log diagram
below compares the actual and potential exports of this product to South African market by Sri
Lanka.
Source: Sri Lanka Customs and ITC
7.1.14 Surgical Gloves (HS 401511)
Sri Lanka’s export share of this product has increased from 0.53% to 2.91% during the period
under reviewed. Following table illustrates the export performance of Sri Lanka in the South
African market during the selected time period.
Table 14: Performance of Surgical Gloves of Rubber (HS 401511) in the South African market
2008 2009 2010 2011 2012 Avg. growth
rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
10,825 10,663 15,891 20,049 21,208 19.7
Exports by Sri
Lanka to South
Africa(US$ ‘000)
57 376 378 785 618
55
Sri Lanka’s share 0.53% 3.53% 2.38% 3.92% 2.91% -
Source: Sri Lanka Customs and ITC
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 17.0 Log diagram of the actual and potential exports of Activated Carbon
Export Potential forSri Lanka
Actual Exports of SriLanka
24 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Following table compares the performance of the top four suppliers of this product to the South
African market. It is noteworthy that even though Malaysia, Thailand and China are the market
leaders for the product category; all of them receive a price below the average market price.
They might be catering to the mass market of this product. The high price received by Sri Lanka
and the market share of 3% for this product highlights the fact that we are catering for a niche
market and obtaining a premium price may be owing to the quality and the reliability of the
product. Therefore it is recommended that Sri Lanka should increase its exports of the product
and capture a higher market share of this niche market.
Rank Country Market share in 2012
Unit Value/ Price Per tone in South
Africa
- World 100.0% US $ 5,988
1 Malaysia 58.9% US $ 5,810
2 Thailand 21.6% US $5,920
3 China 9.5% US $5,342
4 Sri Lanka 3% US $11,218
Source: ITC Data base
7.1.15 Women/ Girls Trousers or Breeches (HS 620469)
The unit value received by Sri Lanka is US $ 9.26 per unit on average in the South African market
which is above the average unit value of US $ 2.18 per unit. Following table compares the
performance of Sri Lanka with some of the major suppliers of this product in the South African
market. It is noteworthy that Sri Lanka is catering for the needs of a niche market like Romania
does where they receive a premium unit value than us. There for we have to think carefully
about the quality factor to increase our exports revenue in the South African market.
Table 15: comparison of the world unit value with the unit values of the top exporters in South
African market
Rank Country Unit Value/ Price Per tonne in South
Africa
- World US $ 2.18
1 China US $ 1.84
2 Bangladesh US $2.36
3 Turkey US $17
16 Sri Lanka US $9.26
17 Romania US $ 43
Source: ITC Data base and Sri Lanka Customs
25 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.16 Tableware and Kitchenware (HS 691110)
Sri Lanka is the 2nd major supplier of this product category to South African market and the
decline in the market share registered in 2009 have been gradually recovering and by 2012 Sri
Lanka managed to capture a market share of 1.24% in the South African market. Sri Lanka
receives a high unit value of US $ 3,513 per tonne compared to the average market value of US $
1,204 per tonne. Sri Lanka’s exports of this product in value were growing at a rate of 16.9 %
from 2008 to 2012 in the South African market.
Following table compares the performance of this product in the South African market over the
period under review.
Table 16: performance of Tableware and Kitchenware (HS 691110) in the South African market
over the period under review
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
21,593 18,863 24,714 25,662 27,716 8
Exports by Sri
Lanka to South
Africa(US$ ‘000)
268 241 270 793 344
16.9
Sri Lanka’s share 1.24% 1.28% 1.09% 3.09% 1.24% -
Source: Sri Lanka Customs and ITC
7.1.17 Woven Fabrics (HS 540710)
Sri Lanka is the 7th largest supplier of Woven Fabrics to the South African market. Sri Lanka’s
export share of this product has gradually been increasing during the period under review. In
2012, Sri Lanka had a market share of 1.19% in the South African market.
Following table compares the performance of this product in the South African market over the
period under review.
26 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Table 17: Performance of Woven Fabrics (HS 540710) in the South African market
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to South
Africa (US$ ‘000) 7,511 6,818 8,003 12,063 8,169
7.3
Exports by Sri Lanka to
South Africa(US$ ‘000) - - - 78 97
21.8
Sri Lanka’s share 0.00% 0.00% 0.00% 0.65% 1.19% -
Source: Sri Lanka Customs and ITC
As shown in the diagram below, the average unit value for this product category is US $ 8,663
per tonne. But Sri Lanka receives a premium unit value of US $ 56,500 which is the highest price
received by any country exporting this product to South Africa. This stresses the fact that our
Woven Fabric is well accepted as a high quality product and it might be catering for a niche
market. Therefore Sri Lanka should increase its supply of Woven Fabrics to reap the maximum
potential export revenue.
Source: Sri Lanka Customs and ITC
7.1.18 Dresses of Synthetic rubber (HS 620443)
The unit value received by Sri Lanka is US $ 39 per unit on average which is well above the
average unit value of US $ 4.12 per unit. According to Sri Lanka’s Custom data, Sri Lanka’s
exports of this product in value were growing at a rate of 202% from 2011 to 2012 in the South
African market. The diagram below compares Exports performance of Women/ Girls Suits of
other textiles knitted or crocheted in South African market.
0
50,000
100,000
150,000
200,000
US
$ p
er
ton
e
Fig 18.0 Comparison of prices received by top ten exporting countries for Woven Fabrics in South Africa
27 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Source: Sri Lanka Customs and ITC
7.1.19 Gloves of Vulcanized rubber (HS 401519)
Sri Lanka’s export share of this product has gradually been increasing during the selected time
period. Currently Sri Lanka has a market share of 0.59% in the South African market. The
average price of this product category in the South African market is US $ 6,444 per tone but Sri
Lanka receives a price of US $ 13,556 per tone. The high price received by Sri Lanka and a small
market share for this product highlights the fact that we are catering for a niche market and
obtaining a premium price may be for the quality and the reliability of our product. Therefore it
is recommended that Sri Lanka should increase its exports of the product and capture a higher
market share of this niche market.
Following table illustrates the export performance of Sri Lanka in the South African market
during the selected time period.
Table 18: performance of Other Gloves of rubber (HS 401519) in the South African market
2008 2009 2010 2011 2012 Avg. growth rate 2008-2012
(%)
Total imports to
South Africa (US$
‘000)
7,241 8,381 12,273 14,236 13,346 17.5
Exports by Sri
Lanka to South
Africa(US$ ‘000)
101 47 46 73 79
-0.00
Sri Lanka’s share 1.39% 0.56% 0.37% 0.51% 0.59% -
Source: Sri Lanka Customs and ITC
0
20
40
60
80
100
120
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 19.0 Exports performance of Dresses of Synthetic rubber (HS 620443) in South African market
28 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.20 T-shirts, Singlets and other vests of cotton, knitted (HS 610910)
The unit value received by Sri Lanka for this product in the South African market is US $ 3.60 per
unit on average which is above the average unit value of US $ 2.24 per unit in that market. Our
current market share of the product is 0.55% in the South African market. The decline in export
revenue of this product in 2009 was gradually recovering since 2009 and Sri Lanka’s exports of
this product in terms of value were growing at a rate of 20.2% from 2009 to 2012 in the South
African market. Following diagram compares the actual and potential exports of this product to
South African market by Sri Lanka.
Source: Sri Lanka Customs and ITC
7.1.21 T-shirts, Singlets and other vests of other textile materials, knitted (HS 610990)
The unit value received by Sri Lanka for this product is US $ 5.71 per unit on average which is
above the average unit value of US $ 2.04 per unit. The current market share of the product is
0.39% in the South African market. Sri Lanka’s exports of this product in value were growing at a
mixed rate during the period under review in the South African market. The diagram below
compares the actual and potential exports of this product to South African market by Sri Lanka.
Source: Sri Lanka Customs and ITC
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 20.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of cotton, knitted
Export Potential for SriLanka
Actual Exports of SriLanka
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Fig 21.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of other textile materials,
knitted
Export potential forSri Lanka
Actual exports ofSri Lanka
29 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
7.1.22 Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)
The unit value received attracted by Sri Lanka for this product in the South African market is US
$ 1.48 per unit on average which is above the average unit value of US $ 0.52 per unit. Our
current market share of the product is 0.36 % in the South African market. The diagram below
compares the actual and potential exports of this product to South African market by Sri Lanka.
Source: Sri Lanka Customs and ITC
7.1.23 Brassieres and parts of Textile materials (HS 621210)
Following table compares the performance of the top nine suppliers of this product to the South
African market. It is noteworthy that the high unit value of US $ 70,500 per tonne received by Sri
Lanka compared to the average unit value of US $ 22,103 per tonne and the market share of
0.35%suggest that we are catering for a niche market and obtaining a premium unit value may
be owing to the quality and the reliability of the product. There for it is recommended that Sri
Lanka should increase its exports of the product and capture a higher market share in this niche
market.
Table 19: comparison of the world unit value with the unit values of the top nine exporters in
South African market (Source ITC )
1
100
10,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 22.0 Log diagram of the actual and potential exports of Women/Girls Panties and Briefs Cotton, Knitted
Export Potential for SriLanka
Actual Exports of SriLanka
Rank Country Market share in 2012 Unit Value Per tonne in South Africa
- World 100.0% 22,103
1 China 94.6% 21,669
2 Viet Nam 0.9% 49,571
3 France 0.8% 164,500
4 Sri Lanka 0.4% 70,500
5 Netherlands 0.3% 26,000
6 Philippines 0.3% 59,500
7 Thailand 0.3% 27,250
8 Hong Kong, China 0.3% 21,000
9 Slovakia 0.3% 51,000
30 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
The diagram below compares the actual and potential exports of this product to South African market
by Sri Lanka.
Source: Sri Lanka Customs and ITC
7.1.24 Technically Specified Natural Rubber - TSNR (HS 400122)
The average unit value received by Sri Lanka for this product category is US $ 5,143 per tonne
which is above the average unit value of US $ 3,407 per tonne for this product category in the
South African market. Sri Lanka has a market share of 0.23% for this product category in the
South African market. The average price received by Sri Lanka has been increasing by nearly 20%
during the selected time period. The log diagram below compares the actual and potential
exports of this product to South African market by Sri Lanka.
Source: Sri Lanka Customs and ITC
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 23.0 Log diagram of the actual and potential exports of Brassieres (HS 621210)
Export Potential forSri Lanka
Actual Exports of SriLanka
1
10
100
1,000
10,000
100,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
s
Years
Fig 24.0 Log diagram of the actual and potential exports of Technically Specified Natural Rubber - TSNR
Export Potential forSri Lanka
Actual Exports of SriLanka
31 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
8. POTENTIAL EXPORTABLE PRODUCTS TO SOUTH AFRICAN MARKET
Following table shows the products which have been identified as potential exportable products to
the South African market. These products are not currently exported to South Africa by Sri Lanka.
However Sri Lanka exports those products to other countries and these products are well in demand
in South Africa as well. These selected products have been showing a positive annual growth in
value of total imports to South Africa during the period under review which is illustrated in the
following table.
Table 20: Potential exportable products to South African market
HS code Products Sri Lanka’s exports to the world (US$) 2012 data
Total imports to South Africa (US$) 2012 data
Annual Growth in value of total imports to South Africa 2008-2012
Tariff Rate applied by South Africa for Sri Lanka
401120
Rubber tyres for buses or lorries
24,152,000 246,643,000 21% 25%
870870
Wheels including parts and accessories for motor vehicles
5,956,000 62,759,000 18% 20%
690890
Tiles, cubes and glazed ceramics
4,510,000 117,237,000 16% 20%
030749
Cuttle fish and squid 4,410,000 20,430,000 14% 0.42%
401110
Rubber tyres for motor car
3,568,000 186,358,000 16% 30%
640299 Footwear-outer soles of rubber or plastics
127,000 353,229,000 13% 30%
Source: ITC Data base
32 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Following diagrams shows how the South African total import market for each of these products has
changed over time. The import of these products to South Africa shows an increasing trend over the
selected time period. (Source: ITC Data base)
8.1 Rubber tires for buses or lorries
Source: ITC Data base
8.2 Wheels including parts and accessories for motor vehicles
Source: ITC Data base
0
50,000
100,000
150,000
200,000
250,000
300,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
Years
Fig 25.0 Total Imports of Rubber tires for buses or lorriesto South Africa
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
Tears
Fig 26.0 Total Imports of Wheels including parts and accessories for motor vehicles to South Africa
33 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
8.3 Tiles, cubes and glazed ceramics
Source: ITC Data base
8.4 Cuttle fish and squid
Source: ITC Data base
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
Years
Fig 27.0 Total Imports of Tiles, cubes and glazed ceramics to South Africa
0
5,000
10,000
15,000
20,000
25,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
Years
Fig 28.0 Total Imports of Cuttle fish and squid to South Africa
34 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
8.5 Rubber tyre for motor car
8.6 Footwear-outer soles of rubber or plastics
Source: ITC Data base
0
50,000
100,000
150,000
200,000
250,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
Years
Fig 29.0 Total Imports of Rubber tyre for motor car to South Africa
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2008 2009 2010 2011 2012
US
$ T
ho
usa
nd
Years
Fig 30.0 Total Imports of Footwear-outer soles of rubber or plastics
35 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9. BARRIERS TO TRADE
South Africa belongs to the Southern African Customs Union (SACU). The Southern African Customs
Union (SACU) consists of Botswana, Lesotho, Namibia, South Africa, and Swaziland. These countries
are benefitted from preferential access to South African market with tariff advantages. South Africa
offers preferential tariff advantages to certain European countries as well. Namely: Austria, Belgium,
Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France and Germany. Furthermore
South Africa belongs to the South African Development Community (SADC) Free Trade Area and
which was initiated in 2000 and consist of South Africa, Botswana, Lesotho, Namibia, and Swaziland,
Mauritius, Zimbabwe, Madagascar, Malawi, Mozambique, Tanzania, and Zambia. These countries
are also benefitted by preferential access to South African market with tariff advantages.
Following tables illustrate the import tariff rates applied by South African government for the
selected products (products which are already imported by South Africa from Sri Lanka).
9.1 Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber (HS 530500)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 21: Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber (HS
530500)
Country
Average tariff applied by South Africa (for HS
530500)
Ranking based on the value of imports by
South Africa
Sri Lanka 0 1
Brazil 0 2
India 0 3
China 0 4
Philippines 0 5
United States of America 0 6
Kenya 0 7
Mozambique 0 8
Bangladesh 0 9
Israel 0 10
Source: ITC Tariff data
36 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.2 Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 22: Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 401290)
Ranking based on the value of imports
by South Africa
Sri Lanka 25 1
India 25 2
China 25 3
France 15 4
Germany 15 5
Italy 15 6
Brazil 25 7
Republic of Korea 25 8
Thailand 25 9
Netherlands 15 10
37 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.3 Average tariff applied by South Africa for Natural rubber in other forms (HS 400129)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 23: Average tariff applied by South Africa for Natural rubber in other forms (HS 400129)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 400129)
Ranking based on the value of imports
by South Africa
Malawi 0 1
Sri Lanka 0 2
China 0 3
India 0 4
United Kingdom 0 5
United States of America 0 6
Chinese Taipei 0 7
Italy 0 8
Spain 0 9
Sweden 0 10
38 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.4 Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 24: Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 200110)
Ranking based on the value of
imports by South Africa
Germany 0 1
Sri Lanka 20 2
Hungary 0 3
India 20 4
Viet Nam 20 5
Belgium 0 6
China 20 7
Spain 0 8
France 0 9
Netherlands 0 10
39 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.5 Average tariff applied by South Africa for Lead Monoxide (HS 282410)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 25: Average tariff applied by South Africa for Lead Monoxide (HS 282410)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 282410)
Ranking based on the value of
imports by South Africa
Chinese Taipei 0 1
Sri Lanka 0 2
Australia 0 3
China 0 4
France 0 5
United States of America 0 6
Belgium 0 7
Brazil 0 8
Germany 0 9
Indonesia 0 10
40 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.6 Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 26: Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 090230)
Ranking based on the value of imports by
South Africa
Netherlands 0 1
United Kingdom 0 2
Sri Lanka 5.1 3
Poland 0 4
India 5.1 5
China 5.1 6
Zimbabwe 0 7
Singapore 5.1 8
UAE 5.1 9
Germany 0 10
41 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.7 Average tariff applied by South Africa for Cinnamon (HS 090611)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 27: Average tariff applied by South Africa for Cinnamon (HS 090611)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 090611)
Ranking based on the value of imports
by South Africa
China 0 1
Sri Lanka 0 2
Philippines 0 3
Singapore 0 4
Indonesia 0 5
Hong Kong, China 0 6
India 0 7
Malaysia 0 8
Netherlands 0 9
Viet Nam 0 10
42 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.8 Average tariff applied by South Africa for Black Tea- Bulk (HS 090240)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 28: Average tariff applied by South Africa for Black Tea- Bulk (HS 090240)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 090240)
Ranking based on the value of imports
by South Africa
Malawi 0 1
Sri Lanka 21.2 2
United Republic of Tanzania 0 3
Zimbabwe 0 4
Kenya 21.2 5
Poland 0 6
Area Nes - 7
India 21.2 8
United States of America 21.2 9
Germany 0 10
43 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.9 Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber
(HS 611610)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 29: Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber (HS 611610)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 611610)
Ranking based on the value of
imports by South Africa
China 30 1
Sri Lanka 30 2
Bangladesh 30 3
Pakistan 30 4
Malaysia 30 5
Germany 0 6
Republic of Korea 30 7
United States of America 30 8
Hong Kong, China 30 9
Portugal 0 10
44 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.10 Average tariff applied by South Africa for Ornamental Fish – Live (HS 030110)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 30: Average tariff applied by South Africa for Ornamental Fish
Source: ITC Tariff data
Country
Average tariff applied by South
Africa
Ranking based on the value of
imports by South Africa
Singapore 0 1
Israel 0 2
Indonesia 0 3
Sri Lanka 0 4
Malaysia 0 5
Chinese Taipei 0 6
Thailand 0 7
Kenya 0 8
Japan 0 9
United States of America 0 10
45 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.11 Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial handling
vehicle (HS 401193)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 31: Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial
handling vehicle (HS 401193)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 401193)
Ranking based on the value of imports
by South Africa
India 20 1
China 20 2
Romania 10 3
France 10 4
Sri Lanka 20 5
Czech Republic 10 6
United States of America 20 7
Germany 10 8
Australia 20 9
Mexico 20 10
46 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.12 Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or
crocheted (HS 610469)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 32: Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or
crocheted (HS 610469)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 610469)
Ranking based on the value of
imports by South Africa
China 45 1
Mauritius 0 2
Viet Nam 45 3
Cambodia 45 4
Bangladesh 45 5
Italy 20 6
Malaysia 45 7
Turkey 45 8
Indonesia 45 9
Hong Kong, China 45 10
Sri Lanka 45 19
47 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.13 Average tariff applied by South Africa for Activated Carbon (HS 380210)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 33: Average tariff applied by South Africa for Activated Carbon (HS 380210)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 380210)
Ranking based on the value of
imports by South Africa
India 0 1
Philippines 0 2
China 0 3
Indonesia 0 4
Thailand 0 5
Sri Lanka 0 6
United States of America 0 7
Germany 0 8
Viet Nam 0 9
Australia 0 10
48 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.14 Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 34: Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 401511)
Ranking based on the value of imports
by South Africa
Malaysia 20 1
Thailand 20 2
China 20 3
Sri Lanka 20 4
India 20 5
Indonesia 20 6
United States of America 20 7
Austria 0 8
France 0 9
Italy 0 10
49 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.15 Average tariff applied by South Africa for Women/ Girls Trousers or Breeches (HS 620469)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 35: Average tariff applied by South Africa for Women/ Girls Trousers or Breeches (HS
620469)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 620469)
Ranking based on the value of imports
by South Africa
China 45 1
Bangladesh 45 2
Turkey 45 3
India 45 4
Italy 20 5
Viet Nam 45 6
Hong Kong, China 45 7
United States of America 45 8
France 20 9
Spain 20 10
Sri Lanka 45 15
50 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.16 Average tariff applied by South Africa for Tableware and Kitchenware (HS 691110)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 36: Average tariff applied by South Africa for Tableware and Kitchenware (HS 691110)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 691110)
Ranking based on the value of
imports by South Africa
China 30 1
Sri Lanka 30 2
Germany 0 3
Indonesia 30 4
Hong Kong, China 30 5
United Kingdom 0 6
Thailand 30 7
Portugal 0 8
India 30 9
France 0 10
51 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.17 Average tariff applied by South Africa for Woven Fabrics (HS 540710)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 37: Average tariff applied by South Africa for Woven Fabrics (HS 540710)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 540710)
Ranking based on the value of
imports by South Africa
United States of America 22 1
Chinese Taipei 22 2
China 22 3
Republic of Korea 22 4
Germany 10 5
Italy 10 6
Sri Lanka 22 7
Indonesia 22 8
United Kingdom 10 9
Thailand 22 10
52 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.18 Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 38: Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 620443)
Ranking based on the value of imports
by South Africa
China 45 1
India 45 2
Spain 20 3
United States of America 45 4
Turkey 45 5
United Kingdom 20 6
France 20 7
Viet Nam 45 8
Italy 20 9
Morocco 45 10
Sri Lanka 45 21
53 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.19 Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 39: Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 401519)
Ranking based on the value of imports
by South Africa
Malaysia 15 1
China 15 2
Thailand 15 3
United States of America 15 4
United Kingdom 0 5
Germany 0 6
Indonesia 15 7
Chinese Taipei 15 8
Sri Lanka 15 9
India 15 10
54 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.20 Average tariff applied by South Africa for T-shirts, Singlets and other vests of cotton, knitted
(HS 610910)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 40: Average tariff applied by South Africa for T-shirts, Singlets and other vests of cotton,
knitted (HS 610910)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 610910)
Ranking based on the value of imports
by South Africa
Mauritius 0 1
China 45 2
Madagascar 0 3
India 45 4
Bangladesh 45 5
Turkey 45 6
United Republic of Tanzania 0 7
United States of America 45 8
Portugal 20 9
Thailand 45 10
Sri Lanka 45 13
55 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.21 Average tariff applied by South Africa for T-shirts, Singlets and other vests of other textile
materials, knitted (HS 610990)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 41: Average tariff applied by South Africa for T-shirts, Singlets and other vests of other
textile materials, knitted (HS 610990)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 610990)
Ranking based on the value of
imports by South Africa
China 45 1
Mauritius 0 2
Indonesia 45 3
Thailand 45 4
Turkey 45 5
Bangladesh 45 6
India 45 7
Viet Nam 45 8
Philippines 45 9
Sri Lanka 45 10
56 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.22 Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton, Knitted (HS
610821)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 42: Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 610821)
Ranking based on the value of imports
by South Africa
China 45 1
India 45 2
Bangladesh 45 3
Sri Lanka 45 4
Mauritius 0 5
United States of America 45 6
Indonesia 45 7
Spain 20 8
Cambodia 45 9
Malaysia 45 10
57 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.23 Average tariff applied by South Africa for Brassieres and parts of Textile materials (HS 621210)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the
main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 43: Average tariff applied by South Africa for Brassieres and parts of Textile materials (HS 621210)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 621210)
Ranking based on the value of imports
by South Africa
China 45 1
Viet Nam 45 2
France 20 3
Sri Lanka 45 4
Netherlands 20 5
Philippines 45 6
Thailand 45 7
Hong Kong, China 45 8
Slovakia 20 9
United States of America 45 10
58 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
9.24 Average tariff applied by South Africa for Technically Specified Natural Rubber - TSNR (HS
400122)
Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for
the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.
Table 44: Average tariff applied by South Africa for Technically Specified Natural Rubber - TSNR
HS 400122)
Source: ITC Tariff data
Country
Average tariff applied by South
Africa (for HS 400122)
Ranking based on the value of
imports by South Africa
Indonesia 0 1
Malaysia 0 2
Singapore 0 3
Nigeria 0 4
Côte d'Ivoire 0 5
Philippines 0 6
Thailand 0 7
Viet Nam 0 8
Guinea 0 9
Liberia 0 10
Sri Lanka 0 15
59 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
10. SRI LANKA’S EXPORTS TO SOUTH AFRICA IN THE FIRST TWO QUARTERS OF 2013
The Following table compares the performance of major products exported by Sri Lanka to South
African market during the 1st and 2nd quarters of 2012 and 2013.
Table 45: Comparison of Sri Lanka’s Exports to South Africa in the first and second quarters of 2013 with the exports in first and second quarters of 2012 (including the July data)
Product
2012 Jan-July
(US $ Thousands)
2013 Jan-July
(US $ Thousands)
Coconut ,Abaca, Ramie and other Fiber (HS 530500)
854.16
608.27
Solid or Cushioned tyres (HS 401290)
2,794.90
3,255.49
Natural rubber in other forms (HS 400129)
998.29
1,609.80
Cucumber and Gherkins (HS 200110)
151.26
212.92
Lead Monoxide (HS 282410)
158.47
205.47
Black Tea- Tea Bags HS 090230
99.51
168.28
Cinnamon HS 090611
32.05
213.05
Black Tea- Bulk HS 090240
3,518.04
4,917.10
Knitted Gloves covered with plastics of rubber (HS 611610)
477.32
576.86
Ornamental Fish – Live (HS 030110)
109.66
-
New Pneumatic Tyres of Rubber of industrial handling vehicle (HS 401193)
281.23
107.16
60 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
Product
2012 Jan-June
(US $ Thousands)
2013 Jan-June
(US $ Thousands)
Women/ Girls Suits of other textiles knitted or crocheted (HS 610469)
73.69
147.18
Activated Carbon (HS 380210)
617.51
197.99
Surgical Gloves (HS 401511)
248.44
248.00
Women/ Girls Trousers or Breeches (HS 620469)
44.12
108.05
Tableware and Kitchenware (HS 691110)
201.72
118.87
Woven Fabrics (HS 540710)
97.25
-
Dresses of Synthetic rubber (HS 620443)
6.36
5.75
Gloves of Vulcanized rubber (HS 401519)
78.61
98.16
T-shirts, Singlets and other vests of cotton, knitted (HS 610910)
206.22
224.35
T-shirts, Singlets and other vests of other textile materials, knitted (HS 610990)
97.00
206.22
Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)
32.40
30.75
Brassieres and parts of Textile materials (HS 621210)
105.41
23.22
Technically Specified Natural Rubber - TSNR (HS 400122)
353.55
40.67
**Note: The above table was developed on the basis of the Sri Lanka’s Customs data available at EDB data base.
61 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
11. CONCLUSION
Considering the total import value by South Africa, Sri Lanka stands at the 77th position among all
the countries exporting to South Africa registering a total export of US $ 26 million in 2012. However
Sri Lanka is among the top ten exporting countries for most of the products identified in this
analysis.
Sri Lanka faces the highest tariff rates applied by South Africa for imports. In the case of Textile
products for example, Sri Lanka faces a very high tariff rate of 45% and that industry is highly
protected by South Africa. Therefore it is recommended that Sri Lanka should try to discuss the
possibilities of getting preferential access to South African market for this product.
We should conduct awareness programmes about the Opportunities available in South African Market
to Sri Lankan Exporters and to launch Promotional Campaigns in South Africa.
We should work closely with relevant agencies such as Sri Lanka High Commission in South Africa to
solve the prevailing issues related to exporters and liaise with Ministry of External affairs and
Department of Commerce to examine the possibility of Preferential Trade Agreements with South
Africa.
Major products exported by Sri Lanka to South Africa with potential to further export are :
Coconut ,Abaca, Ramie and other Fiber (HS530500)
Solid or Cushioned tyres (HS 401290)
Natural rubber in other forms (HS 400129)
Cucumber and Gherkins (HS 200110)
Lead Monoxide (HS 282410)
Black Tea- Tea Bags HS 090230
Cinnamon HS 090611
Black Tea- Bulk HS 090240
Knitted Gloves covered with plastics of rubber (HS 611610)
Ornamental Fish – Live (HS 030110)
New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193)
Women/ Girls Suits of other textiles knitted or crocheted (HS 610469)
Activated Carbon (HS 380210)
Surgical Gloves (HS 401511)
Women/ Girls Trousers or Breeches (HS 620469)
Tableware and Kitchenware (HS 691110)
Woven Fabrics (HS 540710
Dresses of Synthetic rubber (HS 620443)
Gloves of Vulcanized rubber (HS 401519)
T-shirts, Singlets and other vests of cotton, knitted (HS 610910)
62 Exploring Opportunities in the South African Market For Sri Lanka’s Exports
T-shirts, Singlets and other vests of other textile materials, knitted (HS 610990)
Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)
Brassieres and parts of Textile materials (HS 621210)
Technically Specified Natural Rubber - TSNR (HS 400122)
This analysis further identifies 6 product categories which are not currently being exported to South
Africa by Sri Lanka, but with potential to grow. These products are given below.
Footwear-outer soles of rubber or plastics (HS 640299)
Cuttle fish and squid (HS 030749)
Tiles, cubes and glazed ceramics (HS 690890) Rubber tyres for buses or Lorries (HS 401120) Wheels including parts and accessories for motor vehicles (HS 870870) Rubber tyres for motor car (HS 401110)
A high demand exists in the South African market for these products. If supply side constrains to export
these products to South Africa market could be overcome, South Africa would be a major market to
generate more foreign exchange to Sri Lanka. Moreover diversifying our products to nontraditional
market such as South Africa will also reduces the dependency of Sri Lankan exports on EU and USA as
well.
It is also suggested that the potential Sri Lankan exporters be identified and be informed about the
opportunities in the South Africa market and also give them possible support to enhance their trade
with South Africa. Supplying detailed information of our exportable products to potential buyers in
South Africa is very important. To successfully reach the target market, launching an efficient
promotional campaign would be highly beneficial. It is also important to forecast demand in the short-
and long- term. Our exporters should also be effectively assisted to compete in a challenging global
marketplace like South Africa and to find the right pricing strategy to attract customers and at the same
time to maximize the sales margin.
Prepared By:
Sanjeewa Udara Rathnasekara - Assistant Director, EDB
Disclaimer:
The Sri Lanka Export Development Board, (EDB), has taken every care in the preparation of the
content of this report, but the EDB cannot be held responsible for any errors, defects, lost profits, or
other consequential damages arising from the use of any information obtained either directly or
indirectly from this report. The EDB accepts no liability whatsoever.