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In a nutshell: the anti-dumping application

Details of an application for anti-dumping duties against chicken imports from Brazil and four European Union Countries – Denmark, Ireland, Poland and Spain – were published in the Government Gazette on 20 February 2021.

The application, brought by the SA Poultry Association (SAPA), will be investigated by South Africa’s International Trade Administration Commission (ITAC) which in turn will make a recommendation to the government.

The application is based on “dumping margins” – the difference between the price of the product in the producer’s home country and the export price to South Africa.

ITAC has found that there is a prima facie case of dumping against the five countries – Brazil, Denmark, Ireland, Poland and Spain. 

It specifies dumping margins per country on a variety of products – frozen leg quarters, frozen wings, frozen thighs, frozen drumsticks, frozen bone-in breasts, and other frozen bone-in portions. The products and dumping margin percentages are different for each country. Most of the percentages are above 100% and the highest is 201% on frozen thighs from Denmark.

After establishing that there is a prima facie proof of dumping by the five countries, ITAC has begun an investigation into the dumping margins, and whether the local industry has suffered material injury as a result of the dumping, or whether such injury is threatened. Both dumping and material injury are required before anti-dumping duties will be imposed.

The application is now open for comment. ITAC will invite interested parties – including producers, importers and the exporting countries named in the application – to send submissions within 30 days. 

The adjudication process can take between a year and 18 months to complete.

The government gazette containing the application can be viewed here.

Read FairPlay’s full statement on the anti-dumping application here.

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