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ITAC Investigates Alleged Dumping of Frozen Potato Chips

November 22, 2021

Department of Trade, Industry and Competition

An investigation into the alleged dumping of frozen potato chips originating in or imported from Belgium, Germany and the Netherlands has been launched.

The trade, industry and competition department announced the investigation in Government Gazette 45500.

The International Trade Administration Commission (ITAC) decided to self-initiate the investigation in terms of Regulation 3.3 of the Anti-Dumping Regulations “having gathered sufficient evidence to establish a prima facie case based on dumping, material injury and causality”.

According to the ITAC, the material injury information provides evidence to show that the “volume of imports have 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”.

Consequently, the Commission found that there is 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.

The period of investigation in order to determine the dumping margins is from 1 July 2020 to 30 June 2021 while the period of investigation for purposes of determining the material injury is from 1 July 2018 to 30 June 2021.

Meanwhile, in Notice 675, the department announced that Rotunda (Pty) Ltd has applied to ITAC to increase the rate of customs duty on thermal paper, including thermocopy paper, from free of duty to 20% ad valorem.

According to Rotunda, import volumes of finished thermal paper rolls into the SACU market have increased in recent years resulting in a decline in local converter’s domestic market share.

Representation is invited within four weeks of the date of publication.

Finestra Shower Doors, a division of Casso Cabinets (Pty) Ltd, has also applied to increase the general rate of customs duty on shower enclosures, including shower doors and shower panels.

Representation is invited within four weeks of the date of publication.