Cement dumping
dispute
On 10 November 2015
Pakistan requested
consultation with South
Africa regarding the
imposition of provisional
anti-dumping duties on
Pakistan Portland cement.
Pakistan claims that these
duties are inconsistent with
Articles 1, 2.4, 2.6, 3.1, 3.2,
3.4, 3.5, 3.6, 6.1.3, 6.2, 6.4,
6.5, 6.8, 7.1, 12.1.1(i), 12.2., 18
and paragraph 6 of Annex
II of the Anti‑Dumping
Agreement; and Article VI of
the GATT 1994.
According to Global
Cement of 15 November
2015, the basis of
Pakistan’s argument is
that the methodology of
the International Trade
Administration Commission
of South Africa (Itac)
for its material injury
determination is flawed.
That Itac used an extended
period of investigation of
four years for its causation
analysis and did not properly
examine the evidence in
light of trends over that
period. That Itac failed to
examine the relationship
between the alleged dumping
and the worsening of the
condition of the domestic
industry, especially by failing
to consider the effects of
the decartelisation of the
domestic cement producers.
Furthermore, Itac is accused
of not properly examining
the entire product under
investigation and instead
limiting its injury analysis
to bagged cement and
disregarding sales by the
domestic industry of the bulk
cement. Finally, Pakistan
contends that Itac did not
provide its exporters with a
fair opportunity to defend
their case, and criticises it for
denying access to the trade
statistics.
But this is not the whole
story. The anti-dumping
duties, ranging from 14.29%
to 77.15%, were imposed
on 15 May 2015, up to and
including 13 November 2015.
Since no final anti-dumping
duties were imposed, the
anti-dumping duties have
lapsed and South African
importers can now apply
for the refund of the antidumping
duties. (The lapsing
of anti-dumping duties
which was unheard of in
the past, has become a fairly
regular occurrence.) Itac
initiated the investigation
on 22 August 2014, taking
nearly 15 months to reach the
preliminary phase. According
to Itac’s booklet, ‘the process
of completing an antidumping
investigation takes
an average of 10 months from
the date of initiation of an
investigation.’
On 01 June 2015 Global
Cement reported that the
Pakistan government was
working on two options to
challenge the anti-dumping
duties. In the first instance
it planned to hold bilateral
consultations with the South
African government to find
a solution. Should this fail,
then they had the option to
request WTO consultations.
Global Cement reported
on 01 September 2015 that
Lucky Cement had filed
papers in the High Court
in Pretoria contesting that
Itac had failed to consider
the losses suffered by
domestic producers due to
a Competition Commission
ruling on the existence of a
cement cartel.
Duty Calls’ watch list
Comment on the proposed
(i) increase in the rate of
customs duty on gas stoves;
(ii) rebate of customs duty
on woven fabrics for the
manufacture of shirts; and
(iii) reduction in the rate of
customs duty on aluminium
is due by 18 December 2015.
Customs Acts clock
It is 533 days since the
Customs Duty Act, 2014
and 520 days since the
Customs Control Act, 2014
were published and 4 010
days since their drafting
commenced.
DUTY CALLS
Comments | 0
