Anti-dumping duties on bone-in chicken imported from Netherlands, Germany and UK

Anti-dumping sunset review

The anti-dumping sunset review investigation on frozen bone-in chicken portions has initiated. Bone-in chicken means whole bird cut in half, leg quarters, wings, breast, thighs, drumsticks among others.

The investigation covers exports from Netherlands, Germany and UK and the application was brought by the South African Poultry Association (SAPA).

Why review the anti-dumping duty?

Anti-dumping duties are imposed for a period of 5 years, however, to determine whether the duties are still necessary, a sunset review investigation is initiated before expiry of the anti-dumping duties.

Should the investigation conclude that dumping and recurrence of material injury are likely, the duties are maintained or revised to an appropriate level for another 5 year period.

Protecting the South African poultry industry?

There is considerable lobbying for increased protection against imports by SAPA. In September 2018, South Africa invoked an Agricultural Safeguard under the then Trade Development Cooperation Agreement (TDCA).

This has since been replaced with the Economic Partnership Agreement (EPA). ITAC imposed a Safeguard duty of 35.3% on frozen chicken imports from the EU. The imposed duty under the FTA is phasing down and eventually eliminated in three and a half years.

Apart from this, a duty increase is expected considering that in his State of the Nation address a few weeks ago, President Ramaphosa hinted that increased Customs duties on chicken will be implemented shortly. The duty increase investigation initiated in November 2018. SAPA requested duties of 82%.

Normal Customs duty increases will not impact imports from countries South Africa has existing Free Trade Agreements with. Notably the EU, which is one of the large sources of frozen bone-in cuts entering the local market.

Back to the sunset review on frozen bone-in chicken portions exported from Netherlands, Germany and UK. Exporters from these countries, local importers and other interested parties have until the first week of April 2020 to file their submissions with ITAC.

If you need assistance in preparing and filing your submission, contact us on infor@ts.chitoro.co.za.