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This follows an application by the South African Poultry Association to the International Trade Administration Commission of South Africa (ITAC) for action against the alleged dumped imports of frozen bone-in portions originating in or imported from Germany, the Netherlands and the United Kingdom. Dumping occurs in a situation where companies export their goods to foreign markets at prices (export price) lower than what they charge for the same product in their home market (normal value). Thus if the export price is lower than the normal value, dumping has occurred. When dumping causes material injury, countries are entitled to act in terms of WTO rules. The idea is to the level the playing field between domestic producers and foreign competition. Anti-Dumping investigations are conducted within domestic law and consistent with the World Trade Organisation Anti-Dumping Agreement (ADA). The application for a dumping investigation followed a SAPA application for an increase in the rates of the ordinary customs duty on five frozen poultry products (whole bird, boneless cuts, bone-in portions, carcasses and offal). Contrary to anti-dumping duties, ordinary customs duties are applicable to all imports under the general column of the customs tariff. The Commission investigated and submitted its final determination for the Minister’s approval. The Minister approved the Commission’s recommendations for an amendment to the ordinary customs duties on these products as follows: Table 1: Amended (MFN) ordinary customs duties
In the dumping investigation, SAPA alleged that imports of frozen bone-in chicken portions originating in or imported from Germany, the Netherlands and the United Kingdom were being dumped on the SACU market, thereby causing material injury and a threat of material injury to the SACU industry. After due verification of the information submitted by the applicant, the Commission considered that there was prima facie evidence that the alleged dumping of frozen bone-in chicken portions originating in or imported from Germany, the Netherlands and the United Kingdom was causing material injury to the SACU industry. ITAC initiated the investigation on 25 October 2013. Interested parties commented on the initiation notice and the application. The Commission took all relevant comments made by interested parties into account. The Commission made a preliminary determination that frozen bone-in chicken portions originating in or imported from Germany, the Netherlands and the United Kingdom were being dumped onto the SACU market, causing material injury to the SACU industry. On 04 July 2014, the South African Revenue Service, at the request of the Commission, imposed provisional payments of between 22.03% and 73.33% on frozen bone-in chicken portions originating in or imported from the Germany, the Netherlands and the United Kingdom (excluding those produced by Frisia Foods BV), effective until 02 January 2015. Interested parties commented on the Commission’s preliminary determination. The Commission took all relevant comments made by interested parties into account. In making its final determination, the Commission found that frozen bone-in chicken portions originating in or imported from Germany, the Netherlands and the United Kingdom and produced by Wiesenhof, Plukon Companies, 2 Sisters Food Group Ltd, Moy Park Ltd, and other producers that did not cooperate, were exported to the SACU at dumped prices. During the Commission’s examination of whether the SACU industry was experiencing material injury as a result of the dumped imports, the Commission found sufficient evidence to indicate that the material injury in the form of price suppression; price undercutting; decrease in profit; decline in return on investments; negative effects on capacity utilization; and negative effects on net cash flow, could be causally linked to the dumped imports. Although there were factors other than the dumping that were alleged to have contributed to the injury, such as an incorrect business model, labour unrest, and brine injections amongst others, the Commission was of the view that these did not sufficiently detract from the causal link between the dumping of the subject product and the material injury. The Commission therefore decided to recommend to the Minister of Trade and Industry that anti-dumping duties of between 31.30% and 73.33%; 3.86% and 22.81% (excluding those produced by Frisia Foods BV; Pluimveeslachterij C van Miert BV; Pluimveeslachterij Mieki Hunsel BV); and 12.07% and 30.99% be imposed on frozen bone-in chicken portions originating in or imported from Germany, the Netherlands and the United Kingdom, respectively. The Commission’s recommendation, detailed in the Commission’s Report No. 492 was accepted by the Minister of Trade and Industry. |
On 27 February 2015, the South African Revenue Service imposed anti-dumping duties of between 3.86% and 73.33% on frozen bone-in chicken portions originating in or imported from a number of firms in Germany, the Netherlands and the United Kingdom.