Anti-dumping duties on frozen bone-in portions of fowls of the species gallus domesticus originating in or imported from Brazil, Denmark, Ireland, Poland and Spain: Final determination

In July 2022, a decision was taken to approve anti-dumping duties on frozen bone-in portions of chicken originating in or imported from Brazil, Denmark, Ireland, Poland and Spain. This was done following an investigation undertaken by ITAC. At the time, the Minister of Trade, Industry and Competition decided to suspend the implementation of the anti-dumping duties for a 12-month period.

This notice serves to advise that the twelve-month period covering the suspension of the anti-dumping duties has ended.

In the circumstances, the Minister of Trade, Industry and Competition (‘the Minister’ hereafter) noted that the anti-dumping duties will now become effective. The Minister has requested the Minister of Finance in terms section 56 of the Customs and Excise Act, 1964, to give effect to the anti-dumping duties through amendment in the Customs and Excise Act.

The Minister will request the Competition Commission and Consumer Commission to carefully monitor poultry prices to determine whether unjustified price increases are effected by local producers in light of the anti-dumping duties. If it is found that there are price increases beyond justifiable rises in production costs or fair margins, taking advantage of the introduction of the anti-dumping duties, the Minister may request the Minister of Finance to suspend the anti-dumping duties for a period.

‘The anti-dumping duties are protecting local producers from dumping, which destroys local jobs. This is consistent with the rules of the World Trade Organisation. However, local producers should not exploit the anti-dumping duties to the detriment of hard-pressed South African consumers. Poultry is an important source of protein, particularly for low and middle-income households,” said Minister Ebrahim Patel.
In addition to the above, the Minister has approved that an anti-dumping duty applicable to glass frit, from Brazil be ended. The duty was introduced in 2018 for a five-year period, subject to its extension through a sunset review. ITAC recommended that on expiry of the original period, the duty not be renewed. The Minister accepted the recommendation.

ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA

BACKGROUND NOTE TO MEDIA: into the investigation into the alleged dumping of frozen bone-in chicken portions originating in or imported from Brazil, Denmark, Ireland, Poland and Spain. 

The South African Poultry Association (“SAPA”), submitted an application to the International Trade Administration Commission (ITAC) alleging that frozen bone-in portions of poultry (“the subject product”) originating in or imported from Brazil, Denmark, Ireland, Poland and Spain (“Subject countries”) were being dumped on the Southern African Customs Union (SACU) market, causing material injury and a threat of material injury to the SACU industry.

ITAC subsequently initiated an anti-dumping investigation into the alleged dumping of the subject product originating in or imported from the subject countries, through a Government Gazette notice of 05 February 2021.On the basis of the information available, ITAC made a preliminary determination that the subject product originating in or imported from the subject countries was dumped onto the SACU market causing material injury and a threat of material injury to the SACU industry. The ITAC’s preliminary findings are contained in its Preliminary Report No.678 (“Preliminary Report”).

On 17 December 2021, the Commissioner of the South African Revenue Service (SARS) imposed provisional anti-dumping duties on the subject product through a Government Gazette notice.

Subsequently, ITAC invited comments from all known interested parties on its preliminary determination. After considering all written comments and oral presentations, ITAC made a final determination that dumping of the subject product originating in or imported from the subject countries was taking place, causing material injury and a threat of material injury to the SACU industry.

ITAC therefore recommended to the Minister of Trade, Industry and Competition (“the Minister”) that anti-dumping duties be imposed on the subject product originating in or imported from the subject countries. The Minister approved the Commission’s recommendation. However, in making his decision, the Minister considered the rapid rise in food prices domestically and globally at the time and the significant impact this had, especially on the poor, and the impact that the imposition of the anti-dumping duties might have on the price of frozen poultry as one of the most affordable protein sources for low income households. The Minister, therefore, decided to suspend the imposition of the anti-dumping duties for a period of twelve (12) months or a shorter period of time depending on the prevailing circumstances at the time.

The Minister indicated at the time of making the decision in August 2022, that should circumstances and developments in the next 12 months warrant the further extension of the implementation date, the Minister would undertake timeous consultations with affected parties before doing so. Further, the Minister indicated that the five (5) year period that the anti-dumping duties may stay in place before the duties lapse if a sunset review is not initiated, will be counted from the publication date of the notice of 1 August 2022.

A notice to this effect was published in the Government Gazette on 1 August 2022.

The full details of the final determination are contained on the report below:

Report No.695