ITAC have initiated the sunset review on the anti-dumping duties on bone-in chicken from the USA. Currently these duties are set at R9.40 per kg. The domestic industry allege that if the duties are removed, that dumping will resume. We don’t, at this point, know the size of the duty requested by the applicants, but it unlikely to be lower than the existing duty.
Unlike other anti-dumping duties, this product comes with a rebate that allows the USA to export to South Africa, without paying the anti-dumping duties, but this rebate is limited to 65 000 tons per year. South Africa imports around 240 000 tons of bone-in chicken. The imports within the rebate only attract the normal Customs duty of 37%.
Please visit xa.co.za/sunset-review-usa-chicken-exports/ to find out more about this case, including detailed videos and documents
The recent outbreak of Highly Pathogenic Avian Influenza (HPAI) has shut down exports for most of Europe, resulting in an increase in imports out of the USA, but most of this increase happened after the investigation period for the sunset review, which is from July 2015 to June 2016. Here is a chart showing the investigation period imports, but extended all the way to January 2017.
As you can see, there we no imports for the first half of the investigation period and then we see the imports from the USA picking up, peaking in March 2016. 10 000 tons were imported from the USA, in the investigation period, accounting for 7% of the total import volume.
Companies that wish to respond to the investigation have until 24 April 2017 to file their papers with ITAC.