On 14 July 2022, ITAC imposed provisional anti-dumping duties for frozen potato chips, under tariff codes 2004.10.21 and 2004.10.29, imported or originating from Belgium, Germany, and the Netherlands.
The table illustrated below highlights how the provisional duty payments will be applied:
|Producer||Provisional payment||Country of origin|
|Residual duty (everyone in Belgium, besides Mydibel)||23.06%||Belgium|
|Farm Frites International||23.66%||Netherlands|
|Residual duty (everyone in Netherlands, besides Aviko and Farm Frites)||104.52%||Netherlands|
|Everyone in Germany||181.05%||Germany|
The provisional duties will be imposed until 14 January 2023, unless the case finalises before then.
Why the different duty levels?
Let’s start with Germany. No German producers submitted any information to allow ITAC to calculate their specific dumping margins and so Germany’s information was calculated using best information available to ITAC. It is too late for any German producers to submit specific information now, which means for them to achieve a better outcome, they need rely on ITAC not finding injury or causality. More on this later.
3 Belgian manufacturers submitted specific company information, but only Mydibel’s information was verified (audited) by ITAC and accepted. However, we don’t yet have ITAC’s calculations or their provisional duty report, so we don’t know how they calculated the duties for Mydibel (or any of the others).
Similarly, there were 2 Dutch manufacturers who submitted information (Aviko and Farm Frites), but again we don’t know how their duties were calculated.
All of the companies who cooperated, but who didn’t receive specific duties, have until 29 July to submit updated information at which point they will have specific duties calculated for the final duties.
Those companies identified above and who believe there are errors in their calculations have until the same deadline to file their concerns and potentially have their final duty position updated. If the errors are material, then the provisional duty can be updated, rather than to wait for the final.
Injury and causality
In order to impose anti-dumping duties, ITAC has to find dumping (as noted above), material injury and the injury must be caused by the dumping and not something else. Implied in all of this is that the domestic industry can supply the market with at least the volumes facing anti-dumping duties, which is clearly not the case at the moment.
The domestic industry were substantial importers from Belgium and the Netherlands during the period of investigation and this remains. There are shortages of raw material (potatoes) in the local market, so it’s not clear how the domestic industry will be able to supply the market if the imported chips are removed from the market. Chips will, in other words, become quite a bit more expensive.
It should be borne in mind that the domestic industry didn’t bring the current application for anti-dumping duties. ITAC self-initiated the investigation and there is every indication that this was inappropriately initiated given the supply conditions in the market.
Don’t forget! Any comments or updates are due with ITAC no later than 15:00 on 29 July 2022.