On 19 November 2021, the International Trade Administration Commission of South Africa (ITAC) announced the initiation of an investigation into alleged dumping of frozen potato chips, classifiable in tariff
subheadings 2004.10.2 and 2004.10.29, originating in or imported from Belgium, Germany and the Netherlands, on which comment is due by 10 December 2021.
The allegation of dumping is based on the comparison between the normal values and the export prices from Belgium, Germany and the Netherlands, respectively. The normal values for Belgium and the Netherlands were determined based on the verified price information from cooperating exporters in the previous Sunset Review. The normal values were weighted based on the respective volumes sold by each exporter in Belgium and the Netherlands.
The export prices for all three countries were based on official import statistics obtained from the South African Revenue Service (SARS).
Based on a comparison of the respective normal values and export prices, ITAC found that there was prima facie evidence of dumping and calculated the following margins: Belgium 11.75%; Germany 190.23%; and The Netherlands 83.22%.
The material injury information gathered by ITAC provides evidence to show that the volume of imports has increased and that the industry is experiencing price undercutting and price suppression, as well as an impact in terms of a decline in sales and production volumes; negative net cash flow; a decline in return on investment; a decline in capacity utilisation; a decline in profits; a decline in market share; a decline in employment; and negative growth. On this basis ITAC found that there was prima facie proof of material injury.
ITAC found that there was prima facie evidence of a causal link between the alleged dumped imports and the material injury suffered by the Southern African Customs Union (SACU) industry.