After a 12-month suspension, the International Trade Administration Commission (ITAC) has decided to implement anti-dumping duties on frozen bone in chicken pieces from the EU and Brazil to protect the local poultry sector and mitigate the effects of high food inflation on struggling South Africans. This was done by inserting these duties into the tariff book as an amendment of Part 1 of Schedule 2 of the Customs and Excise Act of 1964.
As of today, the final anti-dumping duties from the 2021-2022 investigation have been reintroduced. These duties vary, ranging from Zero to a substantial 265.1%, depending on the company. The table below gives the exact results. You will notice that XA’s client achieved the best overall outcomes in every country.
| Producer | Proposed duty | Advisor |
|---|---|---|
| Brazil | ||
| Agroaraçá Indústria De Alimentos | 39% | Barral Parente Pinheiro |
| Agrosul Agroavicola Industrial S/A | 16% | Barral Parente Pinheiro |
| Avivar Alimentos Ltda | 35% | Barral Parente Pinheiro |
| Aurora Cooperativa Central Aurora Alimentos | 17% | Trade Law Chambers |
| C.Vale – Agroindustrial | No duty | XA |
| Cooperativa Agroindustrial Consolata | 28.3% | Brindis Remedies |
| Jaguafrangos Indústria E Comércio De Alimentos Ltda | 18.18% | Barral Parente Pinheiro |
| Rio Branco Alimentos S/A | 3.31% | Barral Parente Pinheiro |
| Seara Alimentos Ltda | No duty | Barral Parente Pinheiro |
| Zanchetta Alimentos Ltda | 8% | Barral Parente Pinheiro |
| All other Brazilian producers | 265.10% | |
| Denmark | ||
| HK Scan | 7.75% | XA |
| All other Danish producers | 67.4% | |
| Ireland | ||
| Manor Farm | 2.49% | XA |
| All other Irish producers | 37.52% | |
| Poland | ||
| Animex Foods Sp. Z O.O. | 2.25% | Baker McKenzie |
| Drobimex Sp. Z.O.O | No duty | XA |
| Plukon Sieradz Sp. Z.O.O | No duty | XA |
| All other Polish exporters | 96.9% | |
| Spain | ||
| Distribuciones Avícolas Vázquez S.A.U. | 7.56% | Sidera |
| An Avicola Melida S.L. | 9.95% | Sidera |
| UVE S.A | 14.62% | Sidera |
| Grupo Vall Companies | 22.6% | Sidera |
| All other Spanish exporters | 85.8% | |
In August 2022, the South African government initially suspended the anti-dumping duties on frozen bone-in chicken portions from Brazil, Denmark, Ireland, Poland, and Spain for one year. The decision was made in response to the challenging economic conditions and high food inflation faced by the country’s population.
With higher duties in place, imported frozen bone-in chicken pieces from the affected countries might experience price hikes.