21-Nov-2013
An urgent application by the Association of South African Sugar Importers (Asasi), brought against the International Trade Administration Commission (Itac), was struck off the roll by the North Gauteng High Court because the lack of urgency was “a fatal defect”.
Asasi sought an urgent interdict to prevent the commission from continuing with its investigation relating to an application for an increase in the dollar-based reference price for sugar imports to protect the sugar industry in the South African Customs Union (Sacu).
The application was brought by the South African Sugar Association (Sasa) in April, asking for an increase from the existing $358 per ton to 764 per ton.
Asasi says the increase in the dollar-based reference price will raise imported sugar prices by 44 percent.
SA’s sugar sector has been haemorrhaging about R50m a month and thousands of jobs could be lost as a result of sugar imports that have risen to 400,000 tonnes this year.
The commission accepted the application and initiated an investigation in September. The sugar association said in its application the dollar price was not triggered since April 2009.
The dollar-based reference price sets a floor price for sugar in the Sacu market by increasing tariffs if the world sugar price is low, and decreasing tariffs when the world price is high.
According to Willemien Viljoen, researcher at the Trade Law Centre, the variable tariff formula applicable to sugar imports is calculated as the difference between the reference price of $358 per ton and the 20-day average of the London No5 sugar settlement price (the world price).
The tariff will be adjusted if the 20-day world price falls below the reference price by more than $20 per ton for 20 consecutive days, she explained in a research document.
Asasi requested a review of the decision to initiate the investigation of an increase from the $358, as it says Itac failed to properly verify the data before initiating the investigation.
When Itac gave no undertaking to put its investigation on hold until there was a review of its decision, Asasi approached the court on an urgent basis to stop it.
Itac opposed the urgent application on several grounds, including the fact that the application lacked grounds for contending urgency.
Itac spokesman Thembinkosi Gamlashe said yesterday the commission was considering a final determination of the tariff regime for sugar early next month and would then hear oral presentations from, among others, Asasi, Sugar on Tap, Tiger Brands, XA International Trade Advisors on behalf of Snackworks, and Webber Wentzel on behalf of Sasa.
In its application to Itac requesting the investigation, Sasa expressed concerns about the time it took to implement new duties from the time the world price drops below the floor price, saying this could be up to five months.
In that time a “significant tonnage” of imported sugar could enter the Sacu market, Sasa said.
It said the request for tariffs was not because the industry is inefficient, but because of the distorted world market.
Source:- enca.com
No comments:
Post a Comment