Itac published a notice of initiation of an investigation into the alleged dumping of frozen bone-in portions of fowls of the species Gallus Domesticus, classifiable in tariff subheading 0207.14.90, originating in or imported from Germany, The Netherlands, and the United Kingdom. The application was lodged by the South African Poultry Association (SAPA), an industrial organisation for the poultry producers in the Southern African Customs Union (Sacu) market. SAPA constitutes approximately 72% of the Sacu production volume of the subject product. The application by SAPA is supported by Grain S.A, Animal Feed Manufacturers Association (AFMA), Namib Poultry Industries (Pty) Ltd, Swazi Poultry Processors, Botswana Poultry Association and Basotho Poultry Farmers Association. ARGRI, Country Fair, Early Bird – Olifantsfontein, Early Bird – Standerton, Rainbow Chicken, Sovereign Foods and Supreme Poultry provided injury information in this regard, and they constitute a major portion of the total Sacu production. According to the notice the allegation of dumping is based on the comparison between the normal value and the export price from Germany, the Netherlands and the United Kingdom. The normal values were determined based on an export price to an appropriate third country. The application provided exports from Germany, the Netherlands and the United Kingdom to various third countries. The third country selected was Benin, based on the following: (i) Volumes exported to Benin were found to be comparable to volumes exported to Sacu; (ii) Customers exported to in Benin are comparable to customers exported to in Sacu; and (iii) Benin has a domestic manufacturing industry. The export prices were based on official import statistics obtained from Sars. On this basis, Itac found that there was prima facie proof of dumping. According to the notice in respect of allegation of material injury, SAPA submitted evidence to show that there was price suppression. SAPA’s information indicated a decline in return on investment, negative net cash flow, and negative effects on capacity utilisation, decline in profits, increase in inventory and decrease in productivity. On this basis, Itac found that there was prima facie proof of material injury. According to the notice in respect of the threat of material injury, SAPA submitted information indicating that there was freely disposable capacity or imminent substantial increase in capacity of the exporters in the EU (member countries affected - Germany, the Netherlands and the United Kingdom), significant increase of allegedly dumped imports into the Sacu market which indicates the likelihood of substantially increased importation and that the subject product is entering the Sacu market at prices that will have a significant depressing or suppressing effects on Sacu prices and are likely to increase demand for further imports. The applicant made reference to the Trade, Development and Cooperation Agreement (TDCA) being fully implemented, stating that it is expected that landed cost of imported product will be reduced even further as the import duties will be zero, and this threatens to significantly undercut the prices of the Sacu producers, in the foreseeable future. The applicant also indicated that there is likelihood that the alleged dumped imports will also enter the Sacu market in substantially increased volumes in the foreseeable future. On this basis, Itac found that there was prima facie proof of a threat of material injury. Comment is due by 03 December 2013.