In accordance with the Anti-Dumping Regulations of the International Trade Administration Commission of South Africa, any definitive anti-dumping duty shall be terminated on a date not later than five years from its imposition, unless the authorities determine, in a review initiated before that date on their own initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period of time prior to that date, that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and material injury.
On 07 May 2010, the Commission notified the SACU industry through Notice No.369 of 2010 in Government Gazette No.33151, that unless a substantiated request is made by the SACU industry indicating that the expiry of the anti-dumping duties on frozen meat of fowls of the species GALLUS DOMESTICUS, cut in pieces with bone-in originating in or imported from the USA, would likely lead to the continuation or recurrence of dumping and material injury, the anti-dumping duties on the subject product originating in or imported from the USA will expire on 26 October 2011.
The International Trade Administration Commission of South Africa (the Commission) received a sunset review application from FC Dubbelman and Associates on behalf of Southern Africa Poultry Association (SAPA) representing the SACU industry alleging that the expiry of antidumping duty on frozen meat of fowls of the species GALLUS DOMESTICUS, cut in pieces with bone-in originating in or imported from the USA would likely lead to the recurrence of dumping and material injury.
The application was lodged by FC Dubbelman and Associates on behalf of (SAPA) representing the SACU industry. SAPA represents about 80 per cent of the SACU producers of the subject product but in this case represent Rainbow Farms (Pty) Ltd, Earlybird Farm (Pty) Ltd and County Fair Foods (Pty) Ltd. The Applicant alleged that the expiry of the anti-dumping duty would likely lead to recurrence of dumping and the recurrence of material injury. The Applicant submitted sufficient evidence and established a prima facie case to enable the Commission to arrive at a reasonable conclusion that a sunset review investigation should be initiated.
The product allegedly being dumped is frozen meat of fowls of the species GALLUS DOMESTICUS, cut in pieces with bone-in, classifiable under tariff heading 0207.14.
The allegation of recurrence and continuation of dumping is based on the comparison between the normal value and the export price.
The normal value was based on a constructed normal value using the broiler price as the basis for the construction since the USA domestic sales were not made in the ordinary course of trade because of the particular market situation. The export price was based on the official import statistics obtained from the South African Revenue Service (SARS). The import price was adjusted downward by 5 percent for inland freight.
On this basis, the Commission found that there was prima facie proof of the likelihood of recurrence of dumping if the duties expire.
The Applicant alleged and submitted prima facie evidence to show that should the anti-dumping duties be removed, the alleged imports will undercut the SACU's selling price and the Applicant will experience price depression and price suppression. The Applicant's information indicated that it would experience a decline in sales volume, sales value, profit margins, output, market share, capacity utilisation, return on investment, employment, wages, growth, cash flow and an increase in inventories if the anti-dumping duties expire.
On this basis the Commission found that there is prima facie proof of the material injury if duties expire.
PERIOD OF INVESTIGATION The investigation period for dumping is from 01 January 2010 to 31 December 2010, and the injury investigation involves evaluation of data for the period of 01 January 2008 to 31 December 201 0. The Commission also considered an estimate of what the situation will be, if the antidumping duties expire.
PROCEDURAL FRAMEWORK Having decided that there is sufficient evidence and a prima facie case to justify the initiation of a sunset review investigation, the Commission has began an investigation in terms of section 16 of the International Trade Administration Act, 2002 (the ITA Act).
Regulations of the International Trade Administration Commission of South Africa (ADR). Both the ITA Act and the ADR are available on the Commission's website (www.itac.org.za) or from the Trade Remedies section, on request.
In order to obtain the information it deems necessary for its investigation, the Commission will send non-confidential versions of the application and questionnaires to all known importers and exporters, and known representative associations. The trade representative of the exporting country has also been notified. Importers and other interested parties are invited to contact the Commission as soon as possible in order to determine whether they have been listed and were furnished with the relevant documentation. If not, they should immediately ensure that they are sent copies. The questionnaire has to be completed and any other representations must be made within the time limits set out below.
CONFIDENTIAL INFORMATION Please note that if any information is considered to be confidential then a non-confidential version of the information must be submitted for the public file, simultaneously with the confidential version.
a summary of the confidential information which permits a reasonable understanding of the substance of the confidential information; and in exceptional cases, where information is not susceptible to summary, reasons must be submitted to this effect.
This rule applies to all parties and to all correspondence with and submissions to the Commission, which unless indicated to be confidential and filed together with a non-confidential version, will be placed on the public file and be made available to other interested parties.
If a party considers that any document of another party, on which that party is submitting representations, does not comply with the above rules and that such deficiency affects that party's ability to make meaningful representations, the details of the deficiency and the reasons why that party's rights are so affected must be submitted to the Commission in writing forthwith (and at the latest 14 days prior to the date on which that party's submission is due).
Failure to do so timeously will seriously hamper the proper administration of the investigation, and such party will not be able to subsequently claim an inability to make meaningful representations on the basis of the failure of such other party to meet the requirements.
Subsection 33(1) of the IT A Act provides that any person claiming confidentiality of information should identify whether such information is confidential by nature or is otherwise confidential. Any such claims must be supported by a written statement, in each case, setting out how the information satisfies the requirements of the claim to confidentiality. In the alternative, a sworn statement should be made setting out reasons why it is impossible to comply with these requirements.
Provided that a party submitting such information indicates it to be confidential.
The Senior Manager: Trade Remedies II, should receive all responses, including nonconfidential copies of the responses, not later than 30 days from the date hereof, or from the date on which the letter accompanying the above-mentioned questionnaire was received.
The said letter shall be deemed to have been received seven days after the day of its dispatch.
Late submissions will not be accepted except with the prior written consent of the Commission. The Commission will give due consideration to written requests for an extension of not more than 14 days on good cause shown (properly motivated and substantiated), if received prior to the expiry of the original 30-days period. Merely citing insufficient time is not an acceptable reason for extension. Please note that the Commission will not consider requests for extension by the Embassy on behalf of exporters.
The information submitted by any party may need to be verified in order for the Commission to take such information into consideration. The Commission may verify the information at the premises of the party submitting the information, within a short period after the submission of the information to the Commission. Parties should therefore ensure that the information submitted would subsequently be available for verification. It is planned to do the verification of the information submitted by the exporters within three to five weeks subsequent to submission of the information. This period will only be extended if it is not feasible for the Commission to do it within this time period or upon good cause shown, and with the prior written consent of the Commission, which should be requested at the time of the submission. It should be noted that unavailability of, or inconvenience to consultants will not be considered to be good cause.
Parties should also ensure when they engage consultants that they will be available at the requisite times, to ensure compliance with the above time frames. Parties should also ensure that all the information requested in the applicable questionnaire is provided in the specified detail and format. The questionnaires are designed to ensure that the Commission is provided with all the information required to make a determination in accordance with the rules.
Commission may therefore refuse to verify information that is incomplete or does not comply with the format in the questionnaire, unless the Commission has agreed in writing to a deviation from the required format. A failure to submit an adequate non-confidential version of the response that complies with the rules set out above under the heading Confidential Information will be regarded as an incomplete submission.
Parties who experience difficulty in furnishing the information required, or submitting in the format required, are therefore urged to make written applications to the Commission at an early stage for permission to deviate 'from the questionnaire or provide the information in an alternative format that can satisfy the Commission's requirements. The Commission will give due consideration to such a request on good cause shown.
Any interested party may request an oral hearing at any stage of the investigation in accordance with Section 5 of the ADR, provided that the party indicates reasons for not relying on written submission only. The Commission may refuse an oral hearing if granting such hearing will unduly delay the finalisation of a determination. Parties requesting an oral hearing shall provide the Commission with a detailed agenda for, and a detailed version, including a non-confidential version, of the information to be discussed at the oral hearing at the time of the request.
If the required information and arguments are not received in a satisfactory form within the time limit specified above, or if verification of the information cannot take place, the Commission may disregard the information submitted and make a finding on the basis of the facts available to it.
Enquiries may be directed to the Investigating officers, Mr. Rodney Muumba at telephone number +2712 394 3689 or Ms Sandlle Dlamlnl at telephone number +2712 394 3685 or at fax number +2712 394 0518.