By Brazil Stock Guide — Brazil has extended an anti-circumvention investigation into frozen potato imports from Germany, Belgium and the Netherlands as authorities examine whether European exporters used lightly seasoned products to avoid anti-dumping duties.
The Foreign Trade Secretariat, known as SECEX, said in a circular dated Aug. 19 that the review could run for up to nine months from its May opening, with the final determination report expected on Dec. 23.
The investigation focuses on frozen potatoes that are lightly seasoned and generally classified under a different customs treatment from conventional frozen fries already subject to Brazilian anti-dumping duties.
Brazilian trade officials are assessing whether the addition of seasoning represents only a marginal modification to the product and whether it allowed exporters to continue supplying essentially the same goods without paying the duties.
The review was requested by Brazilian frozen-potato producer Bem Brasil Alimentos.
Trade data cited by authorities showed a sharp change in import patterns after the anti-dumping measures were introduced. Imports of lightly seasoned frozen potatoes from the three European countries rose more than 22,000% between the beginning and end of the period examined, while imports of conventional frozen potatoes covered by the duties declined.
Authorities also found that the seasoned products were generally imported at lower prices than the products subject to anti-dumping measures, particularly when the duties were included in the comparison.
The existing anti-dumping charges vary by country and producer. Rates on German frozen potatoes range from 6.3% to 43.2%, while Belgian exporters face rates of as much as 17.2% and Dutch suppliers up to 16.9%.
If Brazil concludes that the seasoned products were used to circumvent the trade remedy, the government could extend the anti-dumping duties to those imports as well.
The Aug. 19 circular also established the remaining timetable for the investigation. The evidentiary phase is scheduled to close on Oct. 26, followed by a period for interested parties to comment on the record. A technical note setting out the essential facts under consideration is due on Nov. 24, with final submissions due by Dec. 14.
SECEX also suspended the review for a group of known producers and exporters that were not selected to answer the government’s questionnaire.
The list includes Agristo, Aviko, Farm Frites, Lutosa and several Lamb Weston entities in Belgium and the Netherlands. The suspension is procedural and does not represent a finding for or against the companies.
The central question in the case is whether the rapid rise in lightly seasoned frozen-potato imports reflected a genuine change in consumer demand or a shift in product specifications aimed at avoiding the existing anti-dumping measures.
A final determination is expected by late December.
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