On 23 October the International Trade Administration Commission of South Africa (ITAC) announced the initiation of a Sunset Review investigation of the anti-dumping duties on fresh or chilled garlic, classifiable in tariff subheadings 0703.20 and 0712.90.90, originating in or imported from the People’s Republic of China (China), on which comment is due by 20 November.
On 24 May 2019, ITAC notified the interested parties through a Government Gazette notice that unless a substantiated request was made by the Southern African Customs Union (SACU) industry, indicating that the expiry of the anti-dumping duties on fresh or chilled garlic originating in or imported from China would likely lead to the continuation or recurrence of dumping and material injury, the relevant anti-dumping duties on fresh or chilled garlic originating in or imported from China would expire on 29 October.
A detailed response to ITAC’s Sunset Review questionnaire was received from South African Garlic Growers’ Association (SAGGA), which represents 100% of SACU industry production volume of the product, on 05 June.
The allegation of continuation and/or recurrence of dumping is based on the comparison between the normal value and the export price.
Normal value: SAGGA determined the normal value based on the wholesale price per kilogram in China as obtained from open market source publications as sourced from two websites freshplaza.com and www.producereport.com.
Export price: SAGGA used the import statistics obtained from the South African Revenue Service (SARS) to determine the export price for China.
On this basis, ITAC found that there was prima facie proof indicating that the expiry of the anti-dumping duties would likely lead to the continuation and/or recurrence of dumping of the product originating in or imported from China.
SAGGA alleged and submitted prima facie evidence to indicate that the expiry of the anti-dumping duties would likely lead to continuation and/or recurrence of material injury in the form of price undercutting, price depression and price suppression. SAGGA’s information further indicated that it would experience a decline in sales volume and value, productivity, market share, profits, net cashflow, growth, return on net assets and increased inventory volume and value.
On this basis, ITAC found that there was prima facie proof indicating that the expiry of the anti-dumping duties would likely lead to the continuation and/or recurrence of material injury.
The period of investigation for dumping is from 01 March 2019 to 29 February 2020. The period of investigation for material injury is from 01 March 2017 to 29 February 2020 and estimates should the anti-dumping duties be removed.
Having decided that there is sufficient evidence and a prima facie case to justify the initiation of a Sunset Review investigation, ITAC initiated the investigation.
The Government Gazette notice is available at:
https://www.gov.za/sites/default/files/gcis_document/202010/43834gen603.pdf
Story by: Riaan de Lange