On 9 November 2022 ITAC initiated the Sunset Review on chicken classifiable under tariff subheading 0207.14.9. imported from the USA. The application was brought by the South African Poultry Association “SAPA” based on the assumption that dumping will continue and cause material injury to the domestic industry if the anti-dumping duties are removed.
The period of for assessing dumping is from January to December 2021. ITAC calculated the dumping margins using the period of investigation as follows:
Cuts (Bone-in) | Tariff code | Dumping margin percentage |
Frozen bone-in portions | 0207.14.90 | 185.39% |
Whole bird cut in half | 0207.14.91 | 175.00% |
Leg quarters | 0207.14.93 | 182.05% |
Wings | 0207.14.95 | 175.00% |
Bone-in breasts | 0207.14.96 | 175.00% |
Thighs | 0207.14.97 | 279.31% |
Drumsticks | 0207.14.98 | 175.00% |
Other | 0207.14.99 | 175.00% |
We don’t yet have access to the application, but it is strange that SAPA have calculated a margin of dumping on tariff code 0207.14.90, given that this tariff code was discontinued years ago and replaced with the more detailed codes covering each specific cut. Attention to detail folks, is very important indeed in an anti-dumping investigation.
The deadline to respond is 9 December 2022, but an extension of up to 14 days can be granted on good cause shown.
Here are the important bits.
- If no one responds then the requested duties will be imposed, likely within 4 to 6 months and remain in place for 5 years.
- Any producer who responds will have their own margin of dumping calculated, while non-responding parties will receive the residual duty, which is likely to be similar to the requested anti-dumping duties.
- Importer responses are really important to further lower the duties connected to responding producers.
- If a respondent misses the deadline, without an extension having been secured, that company will have their information discarded. Because this is a review and not a fresh investigation, there is not preliminary phase and so no second chance. Don’t miss the deadline.
- The rebate of anti-dumping duties remains in place, but this is unlikely to be the case when AGOA is reviewed at the end of 2025. Responding is essential if you wish to lock in better margins beyond 2025.
Most importantly, XA is very good at responding to chicken anti-dumping cases, which is why our clients obtained the best results in the recent anti-dumping investigation into bone-in chicken from Brazil and some EU countries.
XA will be hosting a meeting on Tuesday, likely around 7pm (SA time), which is 12pm EST. The details will be sent out shortly, so please watch this space and please be sure to confirm your attendance.
The deadline to respond is 9 December 2022. If you need to know more, send an email to info@xagta.com.