VZCZCXRO7388
RR RUEHDU RUEHJO
DE RUEHSA #4230 3550721
ZNR UUUUU ZZH
R 210721Z DEC 07
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 3007
INFO RUEHTN/AMCONSUL CAPE TOWN 5162
RUEHDU/AMCONSUL DURBAN 9446
RUEHJO/AMCONSUL JOHANNESBURG 7794
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS PRETORIA 004230 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/S; AF/EPS; EB/TPP 
USDOC FOR JDIEMOND 
USTR FOR PCOLEMAN 
TREASURY FOR TRAND 
USDA/FAS FOR OCRA/FERUS; ONA/MARKLEY 
 
E.O. 12958: N/A 
TAGS: ETRD ECON USTR SF
SUBJECT: SOUTH AFRICA MAY TERMINATE ANTI-DUMPING DUTIES 
 
¶1.  Summary.  South Africa's International Trade 
Administration Commission (ITAC) has proposed a 
recommendation to terminate anti-dumping duties on Lysine, 
Acetaminophenol, suspension PVC, and chicken meat portions. 
ITAC's recommendation will be based on a recent South Africa 
Supreme Court of Appeal decision, which determined that 
calculation of ITAC's five-year limit for initiating sunset 
reviews needed to be based on the date the duties were in 
effect, not the date the notice of duties was issued.  Based 
on the court's determination, several of ITAC's sunset 
reviews were initiated after the five-year deadline.  End 
Summary. 
 
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Rescission of Lysine Investigation 
---------------------------------- 
 
¶2.  ITAC has proposed in a December 14 notice to rescind its 
decision to initiate a sunset review investigation and to 
terminate anti-dumping duties on lysine originating in or 
imported from the U.S. retrospective to July 30, 2006.  ITAC 
is basing its recommendations on a recent South Africa 
Supreme Court of Appeal decision, "Progress Office Machines 
versus ITAC."  The court determined that sunset reviews must 
be initiated five years from the "imposition date" of the 
anti-dumping duty, which is the date the South African 
Revenue Service amendment was to have effect.  Based on the 
effective date for lysine anti-dumping duties, the sunset 
review should have been initiated by July 30, 2006; however, 
it was not initiated until January 12, 2007. 
 
¶3.  According to ITAC Senior Manager of Legal Services Nikki 
Kruger, ITAC opted to recommend rescission of the 
investigation as ITAC is procedurally authorized to rescind 
an on-going investigation, which will also result in 
termination of the duties as though the investigation had 
never been initiated.  Lysine was the only product still 
under investigation at the time the court issued its ruling. 
If ITAC's recommendation becomes a final decision, affected 
importers will be able to obtain a refund of all duties paid 
after July 30, 2006. 
 
--------------------------------------------- -- 
Recommendation to Terminate Anti-Dumping Duties 
--------------------------------------------- -- 
 
¶4.  Kruger provided Agricultural Counselor and Trade and 
Investment Officer with a courtesy unofficial copy of ITAC's 
notice recommending termination of anti-dumping duties on 
Acetaminophenol, suspension PVC, and chicken meat portions. 
Based on the fact that the sunset reviews of Acetaminophenol 
and chicken meat portions were not initiated per the court's 
ruling in the "Progress Office Machines" case, ITAC is 
providing notice of its recommendation that anti-dumping 
duties in these cases be terminated with effect from 
September 26, 2007 (the date the court issued its ruling.) 
According to Kruger, a sunset review of suspension PVC was 
never initiated and the anti-dumping duties lapsed in 
October.  However, ITAC included this product in its notice 
so that the earlier September 26 effective date would apply. 
The official notice is to be released on December 20 with 
comments due to ITAC by January 31, 2008.  Kruger stated that 
she expects that a final decision following receipt of 
comments will be released in February or early March 2008 at 
the latest. 
 
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Comment 
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¶5.  ITAC's implementation of the court ruling to terminate 
anti-dumping duties could be a major boon for those U.S. 
Qanti-dumping duties could be a major boon for those U.S. 
exporters who have been blocked from these markets for years. 
 Although ITAC will await comment from industry before making 
its final recommendation to the Department of Trade and 
Industry Minister, given the breadth and application of the 
court ruling, local industry will likely find it difficult to 
argue against termination of the duties.  In addition, these 
industries will have an uphill battle to initiate a new 
investigation since evidence of damages and dumping practices 
will be difficult to prove when they have been operating in a 
protected market. 
BOST