The International Trade Administration Commission(ITAC) in South Africa is currently facing legal action by Pakistani Cement firm, Lucky Cement.
Lucky cement filed a petition the high court of Pretoria contesting the 14.29 percent duty on provisional anti-dumping on its cement export to the Southern African Customs Union (SACU). However, ITAC, which investigates and sets tariffs on imported products, is planning to challenge Lucky cement’s application against the decision.
Some of the respondents in this include Afrisam, Lafarge Industries, NPC Cimpor and PPC and the South African Revenue Service Commissioner, Tom Moyane.
Other Pakistani cement importers faced much higher duties for their imports ranging from 62 percent to 77.15 percent with an increase of 64 percent between 2010 and 2013 something which will be of harm.
Sales volume, output, profits and cash flow was all decreasing while at the same time the cement from Pakistani producers in export to their traditional markets was also reducing.
According to the Chief Financial Officer for Lucky Cement, Muhammad Faisal, ITAC failed to consider the losses that the cement producers would face due to competition commission ruling on cement cartels.
Faisal also noted that the break of anti-competitive behaviour would have resulted in normal competition leading to low prices and tight margins.
After finding out the existence of cement cartels, the commission imposed fines of US$9.21m on Afrisam while Lafarge got US$11.07m between 2011 and 2012.
Faisal further noted that ITAC did not give them room to inquire on bagged cement .Their dumping duty was on cement sales while ITAC focused on bagged cement in SACU.
