Case Law[2025] ZASCA 173South Africa
International Trade Administration Commission and Others v Association of Meat Importers and Exporters and Others (159/2024; 168/2024; 169/2024) [2025] ZASCA 173; [2026] 1 All SA 28 (SCA) (18 November 2025)
Supreme Court of Appeal of South Africa
18 November 2025
Headnotes
Summary: Revenue – Customs and Excise Act 91 0f 1964 (the Customs Act) – Anti-dumping duty – Schedule 2 to the Customs Act – decisions of International Trade Administration Commission (ITAC) to initiate sunset review and to recommend that anti-dumping duties on bone-in chicken be maintained – whether decision of the Minister of Trade, Industry and Competition to accept ITAC’s recommendation and to request Minister of Finance to give effect to ITAC’s recommendation should be reviewed and set aside – whether the Deputy Minister of Finance empowered to accept the recommendation of the Minister of Trade, Industry and Competition and to amend Schedule 2 to the Customs Act – whether that decision should be reviewed and set aside.
Judgment
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## International Trade Administration Commission and Others v Association of Meat Importers and Exporters and Others (159/2024; 168/2024; 169/2024) [2025] ZASCA 173; [2026] 1 All SA 28 (SCA) (18 November 2025)
International Trade Administration Commission and Others v Association of Meat Importers and Exporters and Others (159/2024; 168/2024; 169/2024) [2025] ZASCA 173; [2026] 1 All SA 28 (SCA) (18 November 2025)
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sino date 18 November 2025
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case no: 159/2024,
168/2024 and 169/2024
In
the matter between:
INTERNATIONAL TRADE
ADMINISTRATION
COMMISSION
FIRST
APPELLANT
MINISTER OF TRADE,
INDUSTRY
AND COMPETITION
SECOND APPELLANT
SOUTH AFRICAN POULTRY
ASSOCIATION
THIRD APPELLANT
and
ASSOCIATION
OF MEAT IMPORTERS
AND
EXPORTERS
FIRST RESPONDENT
MINISTER
OF
FINANCE
SECOND RESPONDENT
SOUTH
AFRICAN REVENUE SERVICE
THIRD RESPONDENT
Neutral
citation:
International
Trade Administration Commission and Others v Association of Meat
Importers and Exporters and Others
(159/2024,
168/2024 and 169/2024)
[2025] ZASCA 173
(18 November 2025)
Coram:
DAMBUZA, MAKGOKA, MEYER and BAARTMAN JJA and
HENNEY AJA
Heard:
19 August 2025
Delivered:
18 November 2025
Summary:
Revenue – Customs and Excise Act 91 0f 1964
(the Customs Act) – Anti-dumping duty – Schedule 2 to the
Customs
Act – decisions of International Trade Administration
Commission (ITAC) to initiate sunset review and to recommend that
anti-dumping
duties on bone-in chicken be maintained – whether
decision of the Minister of Trade, Industry and Competition to accept
ITAC’s
recommendation and to request Minister of Finance to
give effect to ITAC’s recommendation should be reviewed and set
aside
– whether the Deputy Minister of Finance empowered to
accept the recommendation of the Minister of Trade, Industry and
Competition
and to amend Schedule 2 to the Customs Act –
whether that decision should be reviewed and set aside.
ORDER
On
appeal from:
Gauteng Division of the
High Court, Pretoria (Retief J sitting as court of first instance):
1
The first appellant’s appeal
is upheld with costs, including
those of two counsel where so employed.
2
The second appellant’s appeal
is upheld with costs, including
those of two counsel where so employed.
3
The third appellant’s appeal
is upheld with costs, including
those of two counsel where so employed.
4
The order of the high court is
set aside and replaced with the
following:
‘
The
application is dismissed with costs, including those of two counsel
where so employed.’
5
The cross-appeal is dismissed with costs, including those of
two counsel where so employed.
JUDGMENT
Meyer
JA (Dambuza, Makgoka and Baartman JJA and Henney AJA concurring)
[1]
These three appeals and cross-appeal concern the imposition of
anti-dumping duties that the second
respondent, the Minister of
Finance, imposed on bone-in chicken portions
[1]
originating in or imported from the Netherlands, Germany and the
United Kingdom. This the finance minister did at the request of
the
second appellant, the Minister of Trade, Industry and Competition
(the Minister of Trade), who, in turn, accepted the recommendation
of
the first appellant, the International Trade Administration
Commission (ITAC), which body is responsible to investigate and
evaluate applications about alleged dumping or subsidised exports in
or into South Africa or the Common Customs Area.
[2]
In international trade law, ‘dumping’ refers to ‘the
introduction of goods into the commerce of a country or
its common
customs area at an export price less than the normal value of those
goods’.
[3]
[2]
The members of the third appellant, South African Poultry Association
(SAPA), are local producers
of poultry, who compete with the dumped
products. SAPA initiated the process that led to the imposition of
anti-dumping duties.
The members of the first respondent, the
Association of Meat Importers and Exporters (AMIE), are importers and
exporters of such
poultry products. AMIE resisted the imposition of
the anti-dumping duties.
[3]
Aggrieved by the imposition of such duties, AMIE launched an
application in the Gauteng Division
of the High Court, Pretoria (the
high court). Therein it sought the review and setting aside of: (a)
ITAC’s decision to initiate
the sunset review investigation;
(b) ITAC’s final determination to recommend to the Minister of
Trade that anti-dumping duties
be maintained on the relevant products
for a further period of five years; (c) the decision of the Minister
of Trade to approve
ITAC’s recommendation and to request the
Minister of Finance to amend Schedule 2 to the Customs and Excise Act
91 of 1964
(the Customs Act) to give effect to ITAC’s
recommendation; and (d) the decision of the Minister of Finance to
publish the
amendment to Schedule 2 of the Customs Act.
[4]
In a judgment handed down on 12 October 2023, the high court set
aside the decision of the Minister
of Finance to approve the
recommendation of the Minister of Trade and remitted the decision to
the Minister of Finance to make
a fresh decision within 12 months. It
ordered that the ministerial amendment of Schedule 2 to the Customs
Act shall remain in force
and effect until such time as the Minister
of Finance has made a final decision. The judgment made it clear that
ITAC’s recommendation
and the decision of the Minister of Trade
stand. With leave of the high court, SAPA appeals against that order
and AMIE cross-appeals
against that part of the order remitting the
decision to the Minister of Finance, for the ministerial amendment of
Schedule 2 to
the Customs Act to remain in force pending such
decision, and not granting the relief sought against ITAC and the
Minister of Trade.
[5]
In South Africa, dumping is regulated by an interlocking suite of
legislation. The legislation
includes the International Trade
Administration Act 71 of 2002 (the ITA Act), the Anti-Dumping
Regulations published under GN 3197
in Government Gazette 25684 of 14
November 2003 (the Anti-Dumping Regulations), the Board on Tariffs
and Trade Act 107 of 1986
(the BTT Act), and the Customs Act. At an
international level, South Africa is party to the agreement
establishing the World Trade
Organisation (WTO) and the WTO
Agreements, including the General Agreement on Tariffs and Trade,
1994 and the WTO Agreement on
Implementation of Article VI of the
General Agreement on Tariffs and Trade, 1994 (the Anti-Dumping
Agreement). While the passing
of the ITA Act and the promulgation of
the Anti-Dumping Regulations were aimed at giving effect to the WTO
agreements, this Court
has emphasised that ‘[t]he text to be
interpreted … remains the South African legislation and its
construction must
be in conformity with s 233 of the
Constitution’.
[4]
[6]
Section 26(1)
(c)
(i) of the ITA Act allows application to ITAC
for the amendment of customs duties with regard to anti-dumping
duties. This provision
contemplates the imposition of original
anti-dumping duties and the amendment of those duties. The effect of
s 64(2) of the ITA
Act, read with item 2(1) of Schedule 2 to the ITA
Act, is that applications in respect of anti-dumping duties are
currently regulated
by s 4 of the BTT Act as if it had not been
repealed. In terms of s 4(2) of the BTT Act, upon receipt of a report
or recommendation
from the then Board on Tariffs and Trade (the BTT)
regarding an anti-dumping duty, the Minister of Trade may ‘accept
or reject
such report and recommendation, or refer them back to the
BTT [now ITAC] for reconsideration’. If the Minister of Trade
accepts
the report and recommendations, he may request the Minister
of Finance to amend the relevant Schedule to the Customs Act.
Anti-dumping
duties are contained in Schedule 2 to the Customs Act.
Section 56(1) read with s 55(2)
(a)
of the Customs Act
empowers the Minister of Finance, by notice in the Government Gazette
and in accordance with a request by the
Minister of Trade, to amend
Schedule 2 to the Customs Act so as to impose an anti-dumping duty.
Section 56(2) of the Customs Act,
in turn, empowers the Minister of
Finance, by notice in the Government Gazette (the Gazette) and in
accordance with a request from
the Minister of Trade, to withdraw,
reduce or otherwise amend an anti-dumping duty.
[7]
Part C of the Anti-Dumping Regulations deals with the procedures for
the investigation of anti-dumping
duties. Part D deals with the
reviews of anti-dumping duties, including sunset reviews. An
anti-dumping duty will remain in effect
for a period not exceeding
five years from the imposition or the last review thereof.
[5]
However, if a sunset review is initiated prior to the lapse of an
anti-dumping duty, that duty shall remain in force until the
sunset
review has been finalised.
[6]
[8]
ITAC is required to publish a notice of imminent lapsing of the duty
in the Gazette approximately
six months prior to the lapse thereof,
inviting interested parties to request a sunset review.
[7]
The Southern African Customs Union (the SACU) industry is then
required to indicate whether it intends to request a sunset
review.
[8]
If ITAC decides to
initiate a sunset review pursuant to an application, it shall
publish an initiation notice thereof in
the Gazette prior to
the lapse of the relevant duties.
[9]
A sunset review shall consists of a single investigation phase when
ITAC may verify such information as it considers necessary.
[10]
ITAC is required to inform interested parties of the essential facts
to be considered in its final determination and to allow them
to
comment thereon.
[11]
Pursuant
to a sunset review, ITAC may make a recommendation that ‘may
result in the withdrawal, amendment or reconfirmation
of the original
anti-dumping duty’.
[9]
Pursuant to ITAC’s investigation of an application brought by
SAPA in 2013, anti-dumping
duties were imposed on bone-in chicken
portions originating in or imported from the Netherlands, Germany and
the United Kingdom
by the publication of Government Notice R126 on 27
February 2015. The Notice amended Schedule 2 to the Customs Act to
provide for
anti-dumping duties for ‘[f]rozen meat of fowls of
the species
Gallus Domesticus
, cut in pieces with bone in’
at the following rates: (a) 31.3% for specified German producers; (b)
73.33% for all other producers
or exporters from Germany; (c) 3.86%
for Plukon in the Netherlands; (d) 22.81% for all other producers or
exporters from the Netherlands;
(e) 12.07% for Moy Park and Amber
Foods in the United Kingdom; and (f) 30.99% for all other producers
or exporters from the United
Kingdom. The duties referred to in (a),
(c) and (e) are known as ‘company-specific duties’ and
those referred to in
(b), (d) and (f) are known as ‘residual
duties’.
[10]
SAPA applied for a sunset review of the original anti-dumping duties
on 2 October 2019. ITAC liaised
with SAPA to ensure that all
required information had been submitted in the correct format and
that all deficiencies were remedied.
Following this process, ITAC
determined that the application was properly documented and notified
SAPA of this on 21 February 2020.
After considering SAPA’s
application and other documents submitted by it, ITAC initiated the
sunset review by publication
of Notice 115 in Government Gazette
43044 on 24 February 2020 (the initiation notice). The initiation
notice recorded that ITAC
had found that there was prima facie proof
that the expiry of the original anti-dumping duties would likely lead
to a continuation
of dumping and the recurrence of material injury.
On 26 February 2020, ITAC addressed a letter to interested parties,
including
AMIE, notifying them of the initiation of the sunset review
and attaching the non-confidential version of SAPA’s
sunset-review
application and the importers’ and exporters’
questionnaires.
[11] On
28 April 2021, ITAC published an essential facts letter (the
essential facts letter). This, after verifying
the information
submitted by SAPA and the participating importers and exporters, and
after considering the submissions of all interested
parties,
including AMIE. ITAC indicated that it was considering determining
anti-dumping duties on a per cut basis. In other words,
rather than
determining whether or not to retain the anti-dumping duties on
bone-in chicken portions at the 7-digit tariff sub-heading
(0207.14.9), ITAC was considering recommending new anti-dumping
duties for each 8-digit sub-heading (for example, 0207.14.93 for
leg
quarters and 0207.14.95 for wings). Interested parties were given 14
days, until 12 May 2021, to comment on the essential facts
letter.
SAPA responded to the essential facts letter on 12 May 2021. It also
submitted a revised response to ITAC on 20 May 2021,
which ITAC
refused to consider since it was received after the deadline. After
ITAC agreed to its request to do so, SAPA made oral
representations
to it on 8 June 2021.
[12]
ITAC made a final determination to recommend that the anti-dumping
duties, for the most part, be maintained.
ITAC’s report was
finalised on 15 June 2021 and was submitted to the Minister of Trade
on that date. The Minister of Trade
approved ITAC’s
recommendation and requested the Deputy Minister of Finance to amend
the relevant Schedule to the Customs
Act in order to give effect to
that recommendation. The amended anti-dumping duties for frozen meat
of fowls of the species
Gallus Domesticus
‘cut in pieces
with bone in’ with tariff heading 0207.14.9 were in due course
published in Notice R752 of 23 August
2021 in terms of s 56 of the
Customs Act by the Deputy Minister of Finance. These amended
anti-dumping duties were: (a) 73.33%
for Germany; (b) 22.81% for the
Netherlands, excluding that produced by Plukon; and (c) 30.99% for
the United Kingdom, excluding
that produced by Moy Park, 2SFG, and
Amber Foods.
[13]
In its amended notice of motion, AMIE sought the review and setting
aside of ITAC’s initiation of the
sunset review. AMIE continues
to seek this relief in its notice to cross-appeal. It is
well-established that an administrative
act has legal consequences
and must be treated as valid until it is set aside. In
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others,
[12]
this
Court held:
‘
Forsyth
points out that while a void administrative act is not an act in law,
it is, and remains, an act in fact, and its mere factual
existence
may provide the foundation for the legal validity of later decisions
or acts. In other words “…an invalid
administrative act
may, notwithstanding its non-existence [in law], serve as the basis
for another perfectly valid decision. Its
factual existence, rather
than its invalidity, is the cause of the subsequent act, but that act
is valid since the legal existence
of the first act is not a
precondition for the second.”
. . . .
If
the validity of consequent acts is dependent on no more than the
factual existence of the initial act then the consequent act
will
have legal effect for so long as the initial act is not set aside by
a competent court.’
[13]
[14]
ITAC, in making its recommendation, and the ministers in acting upon
that recommendation, were authorised
to do so by the fact of the
initiation of the sunset review. In its amended notice of motion,
AMIE belatedly seeks condonation
for its failure to comply with the
180-day rule in s 7(1)
(b)
of the Promotion of Administrative Justice Act 3 of 2000 (PAJA),
which provides that
any proceedings for judicial review must
be instituted without unreasonable delay and not later than 180 days.
ITAC initiated the
sunset review on 24 February 2000. AMIE’s
original notice of motion did not seek to review ITAC’s
decision to initiate
the sunset review. Its amended notice of motion
in which such relief is sought was filed together with a
supplementary founding
affidavit on 20 June 2022. It follows that 28
months elapsed after the initiation decision was made and before AMIE
applied for
the review and setting aside of the initiation decision.
AMIE was informed of the initiation of the sunset review on 26
February
2020. ITAC furnished the reasons to AMIE, and others, at the
same time that it communicated the initiation decision. The reasons
were contained in the initiation notice.
[15]
In its amended notice of motion that was filed on 20 June 2022, AMIE
did not seek condonation for its failure
to comply with the 180-day
period in PAJA. The first occasion on which AMIE sought such
condonation was in its supplementary affidavit
on 26 August
2022. This was also when AMIE amended its notice of motion to seek
condonation. However, it failed to explain
why it sought to challenge
the initiation decision in June 2022 but did not seek condonation at
the same time. In other words,
AMIE has not explained why it only
sought condonation for its late challenge in August 2022.
[16]
The basis upon which AMIE seeks condonation is that it alleges that
the initiation notice was ‘misleading’.
According to
AMIE, it stated that ITAC had found that SAPA’s sunset-review
application satisfied the requirements of Regulations
25 and 26 and
that it complied with s 26 of the ITA Act. AMIE says that this was
misleading because ITAC’s answering affidavit
contends that it
was not required to verify SAPA’s information. However, ITAC’s
initiation notice made no mention of
Regulations 25 and 26 and did
not state that the requirements of these regulations had been
complied with. It stated that ITAC
had found, based on information
submitted by SAPA, that there was prima facie proof indicating that
the expiry of the anti-dumping
duties would likely lead to a
continuation of dumping and a recurrence of material injury.
Furthermore, AMIE was advised in April
2020 that SAPA’s
information had not been verified before initiation. In its
submissions to ITAC dated 4 May 2020, AMIE noted
that ‘[a]s of
28 April 2020 (2 months after initiation), ITAC had still not
completed the verification of the applicant [SAPA]’
and ‘[i]t
is not disputed that ITAC have not verified the application, and this
alone should stop the matter proceeding’.
AMIE is,
therefore, erroneous in saying that ITAC’s initiation notice in
the Gazette was misleading. AMIE has thus
failed to proffer an
acceptable explanation for its delay in challenging the initiation
decision within the 180-day period prescribed
by PAJA, let alone an
explanation that covers the entire 28-month period of the delay.
[14]
Furthermore, AMIE proffered no explanation for its delay in seeking
condonation.
[15]
[17]
Apart from these insurmountable procedural hurdles, AMIE’s
contention that ITAC failed to comply with
Regulations 25 and 26
before its initiation of the sunset review, is unmeritorious. In
essence, AMIE’s contention is that
ITAC was obliged to conduct
a process of verification before it initiated the sunset review. This
is grounded in Regulation 25,
which provides ‘[ITAC] shall
satisfy itself of the accuracy and adequacy of the information
provided in the application’.
But, these regulations do not
apply to a sunset review. There is a difference between an original
investigation and its initiation
on the one hand, and a sunset review
and its initiation, on the other. In an original investigation, it
must be demonstrated that
dumped imports are causing or threatening
to cause material injury to the domestic industry. This is very
different from a sunset
review, where it must be demonstrated that
the removal of the anti-dumping duty will likely lead to a
continuation or a recurrence
of dumping and injury. Moreover, the
Anti-Dumping Regulations do not impose any specific methodology that
ITAC must follow in a
sunset review; in contrast to the detailed
prescribed procedure (including the pre-initiation procedure) that
applies to an original
investigation.
[18]
The Anti-Dumping Regulations deal with these two procedures in
different Parts. Part C Sub-part II is headed
‘pre-initiation
procedure’. That sub-part includes regulations 25 and 26, which
apply to original investigations. Part
D Sub-part IV is headed
‘sunset reviews’. That sub-part includes regulation 54,
which is headed ‘Initiation of
sunset review’. It makes
no mention of the verification of information prior to the initiation
of a sunset review. In terms
of regulation 54.4, all that is required
to initiate a sunset review is that there must be ‘a proper
application’ containing
‘the necessary information’
to establish a prima facie case that the removal of the anti-dumping
duty would likely
lead to the continuation or a recurrence of
injurious dumping. It makes no mention of verification.
[19]
Once a sunset review is initiated, the investigation commences.
Regulation 56.1 provides that a sunset review
consists of a single
investigation phase and regulation 56.2 adds that ITAC ‘may
verify such information as it deems necessary
to confirm the accuracy
and the adequacy of any information submitted by any interested
party’. Regulation 56.2 thus confers
a broad discretion on ITAC
to verify information of ‘any interested party’ (which is
defined as including producers
in the SACU as well as trade or
business associations whose members are SACU producers) as part of
the sunset-review investigation.
[20]
The Anti-Dumping Regulations, therefore, make it plain that ITAC was
entitled to verify the information contained
in SAPA’s
sunset-review application after the initiation of the sunset review.
ITAC was not required to do so before it initiated
the sunset review.
The less onerous regime for the initiation of a sunset review is
consistent with the approach adopted in the
WTO Anti-Dumping
Agreement, which indicates that the standard for the initiation of a
sunset review is much lower than the standard
for the initiation of
an original ant-dumping application.
[21]
Article 11.3 of the Anti-Dumping Agreement deals with sunset reviews.
It provides that an anti-dumping duty
shall be terminated not later
than five years after its imposition ‘unless the authorities
determine, in a review initiated
before that date on their own
initiative or upon a duly substantiated request made by or on behalf
of the domestic industry . .
. that the expiry of the duty would be
likely to lead to continuation or recurrence of dumping and injury’.
In contrast,
Article 5.3, which deals with the initiation of an
original anti-dumping investigation, provides that ‘the
authorities shall
examine the accuracy and adequacy of the evidence
provided in the application to determine whether there is sufficient
evidence
to justify the initiation of an investigation’.
[22]
The Panel of the WTO has interpreted the standard required for the
initiation of a sunset review (which they
refer to as an expiry
review) as follows:
[16]
‘
The
absence of any cross-reference in Article 11.3 to Article 5.3 must be
understood to imply that the standard for the initiation
of an expiry
review is different from the standard required for the initiation of
an original investigation, and that the standard
in Article 5.3 of
the Anti-Dumping Agreement does not apply to an expiry review. We
also agree that it follows from a plain reading
of the text that the
appropriate standard against which to determine whether an expiry
review has been properly initiated under
Article 11.3 of the
Anti-Dumping Agreement is whether the complainant has provided
sufficient evidence that dumping and injury
are likely to recur in
the absence of anti-dumping measures to warrant initiation. The
request is not required to demonstrate,
as a certainty, that if the
measures were to lapse, dumping and injury would be likely to recur
or continue.’
[23]
AMIE’s contention that it was a jurisdictional requirement in
terms of Regulations 25 and 26 that ITAC
had to verify the
information contained in SAPA’s sunset-review application
before the initiation of the sunset-review, therefore,
is wrong. For
all these reasons, AMIE’s challenge to the initiation of the
sunset review falls to be dismissed.
[24]
AMIE’s ground of review in respect of ITAC’s final
determination is that the sunset review was
procedurally unfair and
vitiated by bias. Its argument of procedural unfairness and bias is
based on the following: (a) the essential
facts letter contemplated
that the anti-dumping duties would be imposed on the 8-digit tariff
level; (b) ITAC allowed SAPA an opportunity
to make oral
representations, among others, on its submission that the duties
should rather be imposed on the 7-digit tariff level;
(c) ITAC
accepted SAPA’s submission; (d) AMIE was not given an
opportunity to rebut SAPA’s contention as the public
file was
not updated during the period in which ITAC granted SAPA’s
request for an oral hearing; and (e) AMIE’s request
for an oral
hearing was refused.
[25]
The essence of AMIE’s argument is that SAPA protested against
the use of the 8-digit tariff structure
for the first time in oral
representations and other parties were not given an opportunity to
counter SAPA’s submissions
on this score. The evidence,
however, refutes AMIE’s contention in this regard. SAPA’s
objection to the use of the
8-digit tariff structure was set out in
detail in SAPA’s response to the essential facts letter dated
12 May 2021. XA, the
trade advisers acting for AMIE, made comments to
ITAC on SAPA’s response on 15 June 2021, but did not respond to
this aspect
of SAPA’s letter.
[26]
AMIE’s contention of procedural unfairness is also at odds with
the following: In response to the fact
that SAPA’s
sunset-review application calculated duties based on the 7-digit
tariff level, Merlog made representations to
ITAC contending that the
8-digit tariff level should be used. The essential facts letter made
clear that ‘ITAC had not yet
made its final determination and
nothing in the letter should be construed as such’ and that
‘[t]he final determination
will only be made once [ITAC] has
considered all parties’ comments on this essential facts
letter’. The letter thus
indicated the approach ITAC was
considering adopting and interested parties were open to persuade it
to adopt a different approach.
AMIE did not comment on the essential
facts letter. SAPA’s oral representations were not materially
different from its response
to the essential facts letter dated 12
May 2021. Despite the initiation notice stating that interested
parties ‘may request
an oral hearing at any stage of the
investigation’ and that ITAC may refuse a request ‘if
granting a hearing will unduly
delay the finalisation of a
determination’, the requests for oral hearings from AMIE and
Merlog on 28 June and 5 July 2021,
were made too late. AMIE should
have been aware that the time period for the sunset review was
drawing near and that a final determination
from ITAC would be
imminent. ITAC made its final determination and communicated it to
the Minister of Trade on 15 June 2021. The
fact that SAPA was able to
persuade ITAC to change the approach proposed in the essential facts
letter and rather to determine
the anti-dumping duties at the 7-digit
tariff level, is in all the circumstances, neither procedurally
unfair nor indicative of
bias.
[27]
In its amended notice of motion, AMIE sought the decision of the
Minister of Trade
to be reviewed and set
aside. AMIE and one of its members, Merlog, addressed letters to the
Minister of Trade
on 12 July 2021, raising
various alleged irregularities in respect of ITAC’s process.
AMIE contends that, in light of these
irregularities, the
Minister
of Trade
was obliged to give AMIE and Merlog a hearing, and
his failure to do so rendered his decision irrational. AMIE adds that
the
Minister of Trade
ignored the
allegations in these letters.
[28]
In his answering affidavit, the
Minister of Trade
correctly stated that he was in law not required to give a hearing to
AMIE. He further stated that AMIE had an opportunity to make
submissions before ITAC and that it would be ‘onerous if not
impractical to open up the process again for interested parties
to
make submissions to [the
Minister of Trade
]
and it can lead to numerous submissions to be considered by [the
Minister of Trade
] notwithstanding that all
interested parties had the opportunity to take part in the ITAC
investigation process’.
[29]
In
Chairman,
Board on Tariffs and Trade, and Others v Brenco Inc and Others
,
[17]
this Court said:
‘
Section
4(2) of the BTT Act does not contemplate and fairness does not
require that the second appellant [the Minister of Trade]
should
afford to persons in the position of the respondents a further and
independent hearing before acting in terms of the subsection.
If the
second appellant in the light of policy factors considers that the
terms of the recommendation should be amended, or that
further
investigation is required, he has no option but to refer the matter
back to BTT. He has no power to reconsider the matter
or to effect
such changes himself. Any further consideration is to be undertaken
by BTT, the body which conducted the investigation,
and not the
second appellant. This underscores the fact that it is BTT, and only
BTT, which must entertain the representations
of the parties affected
by its report and recommendations. I agree with the appellants’
submission that there would
be no point in requiring the second
appellant to receive from the parties affected representations in
addition to those already
made to BTT. Neither s 4(2) of the BTT Act,
nor s 56 read together with s 55(2) of the [Customs] Act, nor
fairness, requires
the [Minister of Finance] to give to parties
affected by the imposition of anti-dumping duties a further and
independent hearing
before acting in terms of those provisions.’
[30]
The purpose for which the
Minister
of Trade
is empowered to accept or reject ITAC’s recommendation is not
to second-guess ITAC’s process; it is rather to decide
whether
to act on the recommendation having regard to policy considerations
relating to international trade. The decision of the
Minister
of Trade
constitutes executive action; not administrative action. In
International
Trade Administration Commission v SCAW South Africa (Pty) Ltd
,
[18]
the Constitutional Court observed:
‘
The
setting, changing or removal of an anti-dumping duty is a
policy-laden executive decision that flows from the power to
formulate
and implement domestic and international trade policy. That
power resides in the heartland of national executive power.’
[31]
The
Minister of Trade
, despite not being
obliged to do so, considered AMIE’s concerns as well as ITAC’s
response. AMIE’s challenge
to the decision of the
Minister
of Trade
, therefore, also falls to be dismissed. I now turn to
its challenge to the decision of the Minister of Finance.
[32]
In its amended notice of motion, AMIE sought the review and setting
aside the decision of the Minister of
Finance, which was taken by the
Deputy Minister of Finance. AMIE challenges this decision on two
bases: First, the
Deputy Minister of Finance
did not have authority to amend Schedule 2 to the Customs Act as this
power was not properly delegated. Second, the decision of
the
Deputy
Minister of Finance
was procedurally irrational. The high
court rejected the first argument but upheld the second.
[33]
The power to amend Schedule 2 to the Customs Act to impose, withdraw
or reduce anti-dumping duties is sourced
in s 56 of the Customs Act.
Section 118(1) provides that the Minister of Finance may delegate his
powers or assign his duties arising
from sections 48, 49, 51, 52, 53,
56, 56A, 57, 60(3), 75(15), 99(4), 105 and 113(4) to the
Deputy
Minister of Finance
. On 8 May 2018, the then Minister of
Finance, acting in terms of s 118, delegated various powers and
duties to the then
Deputy Minister of Finance
,
including the powers and duties contemplated in s 56. There can thus
be no doubt that the
Deputy Minister of Finance
was empowered to amend Schedule 2 to the Customs Act. The high court,
therefore, correctly rejected AMIE’s argument on this
score.
[34]
AMIE and one of its members, Merlog, addressed letters to both the
Minister Trade and the Minister of Finance
on 12 July 2021, raising
various alleged irregularities in respect of ITAC’s process.
AMIE contends that, considering these
irregularities, the
Deputy
Minister of Finance
was obliged to give AMIE and Merlog a hearing, and that his failure
to do so rendered his decision irrational. AMIE adds that the
Deputy
Minister of Finance
ignored the allegations in these letters. This argument is
unmeritorious. First, the
Deputy
Minister of Finance
was not legally obliged to afford AMIE and Merlog an opportunity to
make representations, in circumstances where ITAC already afforded
them such an opportunity as part of its investigation.
[19]
The setting, changing or removal of an anti-dumping duty is the
exercise of executive power and, therefore, only subject to a
legality review. Procedural fairness is not a component of a legality
review.
[20]
[35]
Nevertheless, the evidence indicates that the
Deputy
Minister of Finance
did consider the procedural complaints
raised by AMIE and Merlog. The Rule 53 record filed by the
Deputy
Minister of Finance
included the letter from Merlog’s
attorneys of 12 July 2021 as well as their follow-up email of 2
August 2021, which indicates
that the
Deputy
Minister of Finance
considered this correspondence. There is
considerable overlap between the issues raised in the letter from
AMIE’s attorneys
of 12 July 2021 and the letter from Merlog’s
attorneys of that date. AMIE acknowledged that the
Deputy
Minister of Finance
‘was aware of the issues raised by
[AMIE] (and Merlog), in respect of the flawed process followed by
ITAC’ but asserts
that the ministry does not disclose a
document which shows that the issues raised by AMIE and Merlog were
considered. This complaint,
in my view, amounts to an exercise in
pedantry.
[36]
The high court, therefore, erred in finding that the decision of the
Deputy Minister of Finance
was irrational.
AMIE’s challenge to the deputy minister’s decision also
falls to be dismissed.
[37]
In the result, the following order is made:
1
The first appellant’s appeal
is upheld with costs, including
those of two counsel where so employed.
2
The second appellant’s appeal
is upheld with costs, including
those of two counsel where so employed.
3
The third appellant’s appeal
is upheld with costs, including
those of two counsel where so employed.
4
The order of the high court is
set aside and replaced with the
following:
‘
The
application is dismissed with costs, including those of two counsel
where so employed.’
5
The cross-appeal is dismissed with costs, including those of
two counsel where so employed.
P A MEYER
JUDGE OF APPEAL
Appearances
For
first appellant:
E
Muller with JW Kiarie
Instructed
by:
State
Attorney, Pretoria
State
Attorney, Bloemfontein
For
second appellant:
H
Maenetje SC with M Sahukazana
Instructed
by:
State
Attorney, Pretoria
State
Attorney, Bloemfontein
For
third appellant:
I
Goodman SC (heads of argument having been prepared by A Cockrell
SC)
Instructed
by:
Webber
Wentzel, Johannesburg
McIntyre
Van der Post, Bloemfontein
For
first respondent:
J
G Wasserman with S Tshikila and Y S Ntloko
Instructed
by:
Malatji
& Co. Attorneys, Johannesburg
Phatshoane
Henney Attorneys, Bloemfontein.
[1]
These are frozen meat of fowls of the species
gallus
domesticus
cut in pieces with bone in.
[2]
In terms of s 1 of the Customs and Excise Act 91 of 1994 the
‘”common customs area” means the combined area
of
the Republic and territories with the governments of which customs
union agreements have been concluded under section 51’.
[3]
International
Trade Administration Commission v SCAW South Africa (Pty) Ltd
[2010]
ZACC 6
;
2012 (4) SA 618
(CC);
2010 (5) BCLR 457
(CC);
72 SATC 135
para 1.
[4]
Progress
Office Machines CC v South African Revenue Service and Others
[2007]
ZASCA 118
;
[2007] 4 All SA 1358
;
2008 (2) SA 13
(SCA);
69 SATC 231
para 6. Section 233 of the Constitution reads:
‘
When
interpreting any legislation, every court must prefer any reasonable
interpretation of the legislation that is consistent
with
international law over any alternative interpretation that is
inconsistent with international law.’
[5]
Regulation 53.1.
[6]
Regulation 53.2.
[7]
Regulation 54.
[8]
Regulation 57.1.
[9]
Regulation 54.5.
[10]
Regulation 56.
[11]
Regulation 43.
[12]
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
2004
(6) SA 222 (SCA); [2004] 3 All SA 1 (SCA).
[13]
Ibid paras 29 and 31. Also see
Camps
Bay Ratepayers’ and Residents’ Association and Another v
Harrison and Another
[2010]
ZACC 19
;
2011 (2) BCLR 121
(CC)
2011 (4) SA 42
(CC) para 62
(Harrison)
.
[14]
See, for example,
Camps
Bay Ratepayers’ and Residents’ Association v Harrison
[
2010]
ZASCA 3
;
[2010] 2 All SA 519
(SCA) para 54, where this Court held
that ‘the party seeking it [an extension of the 180-day
period] must furnish a full
and reasonable explanation for the delay
which covers the entire period thereof’.
[15]
In
Dengetenge
Holdings (Pty) Ltd v Southern Sphere Mining and Development Company
Ltd and Others
[2013]
ZASCA 5
;
[2013] 2 All SA 251
(SCA) para 13, this Court said:
‘
An
appellant should, whenever it realises that it has not complied with
a rule of court, apply for condonation without delay (
Commissioner
for Inland Revenue v Burger
1956 (4) SA 446
(A) at 449 G-H).’
[16]
Panel Report, European Union – Cost Adjustment Methodologies
and Certain Anti-Dumping Measures on Imports from Russia –
(Second complaint). WT/DS494/R, adopted 24 July 2020, para 7.333;
and see paras 7.325 to 7.332.
[17]
Chairman,
Board on Tariffs and Trade, and Others v Brenco Inc and Others
2001
(4) SA 511
(SCA) para 71 (
Brenco
).
[18]
International
Trade Administration Commission v SCAW South Africa (Pty) Ltd
[2010]
ZACC 6
;
2012 (4) SA 618
(CC);
2010 (5) BCLR 457
(CC);
72 SATC 135
para 44 (
SCAW
).
[19]
Brenco
fn 17, referred to in para 29
supra
.
[20]
SCAW
fn
18, referred to in para 30
supra
.
sino noindex
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