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Meat group cries foul over poultry body's secret figures

20 May 2013

The Association of Meat Importers and Exporters (AMIE) is seeking urgent relief from the North Gauteng High Court to have access to confidential information in the application brought by the South African Poultry Association before the International Trade Administration Commission (Itac) for an increase of up to 82% in import duties on frozen poultry.

Image courtesy of africa / FreeDigitalPhotos.net

AMIE claims in a founding affidavit released on Friday that it was being deprived by Itac and the poultry association of its right to present and controvert evidence in its opposition to the application. The application would be disastrous for its members and could force them out of business.

AMIE CEO David Wolpert said in the affidavit the increase would dramatically inflate the cost of SA's largest source of animal protein and hence the cost of food to the poorest of the poor.

AMIE claims the government's budget of R4.9m for the school nutrition programme will have to increase to R91m if the tariff increase application is successful, or the number of children on the programme would have to be reduced by 161,689.

Wolpert earlier said it would lead to increases of between 40% and 50% in the price of chicken imports.

The poultry association brought the request for increased tariffs in March, saying the future of local poultry producers was being put at risk by a large and rapid increase in the volume of imports of "extremely low-priced" frozen poultry meat, and that they needed a huge hike in import duties to stay in business.

The poultry association said several companies have gone out of business as a direct result of cheap imports. The body has applied to Itac for import duties of up to a maximum of 82%, from duties of 5%-27% in force now.

Products that will be affected include carcasses with all cuts such as thighs, wings, legs and breasts removed; whole birds; boneless cuts; offal and bone-in portions. About 80% of all frozen meat imports were "bone-in portions" with a tariff of R2.20/kg. The poultry association is asking for a rate of 56% or R6.53/kg, with a maximum tariff of 82%.

Itac initially determined that the information contained in the poultry association's application was confidential.

AMIE requested mediation in an effort to obtain access to the information, but was told by Itac there was no prospect of success with mediation.

Wolpert said that the largest part of the poultry association's application consisted of confidential information. The poultry association's "purpose is clearly to exclude AMIE from the process and steamroll through the increase".

AMIE said the information used in the calculation for the increased duty was at the heart of its objection, and it was not in a position to prepare a meaningful case without the information.

The application has been brought on an urgent basis against Itac, the poultry association, the ministers of trade and industry and economic development, and the South African Revenue Service.

Poultry association CEO Kevin Lovell yesterday said it would oppose the application and file answering affidavits by Friday, 24 May 2013.

Source: Business Day

Source: I-Net Bridge

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