https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Legal Briefs / Webber Wentzel RSS ← Back
Africa|Freight|Manufacturing|Road|tyres|Manufacturing
Africa|Freight|Manufacturing|Road|tyres|Manufacturing
africa|freight|manufacturing|road|tyres|manufacturing-industry-term
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

ITAC rolls on with its investigation into tyre dumping as temporary penalties are lifted

Close

Embed Video

ITAC rolls on with its investigation into tyre dumping as temporary penalties are lifted

Webber Wentzel

28th March 2023

ARTICLE ENQUIRY      SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

The International Trade Administration Commission of South Africa (ITAC) has until 29 July 2023 to complete its investigation into whether Chinese tyres imported into South Africa constitute dumping and harming local manufacturers.

While importers may be rejoicing at the news that the 38.33% provisional duties imposed on eight sizes of tyres imported from China in September 2022 have lapsed, this may be only a temporary reprieve.  

Advertisement

The provisional duties affected tyres for cars, buses and lorries imported into the Southern African Customs Union (SACU).  They were imposed for six months pursuant to ITAC's decision to protect the SACU industry from harm while the anti-dumping investigation is ongoing.

The South African Tyre Manufacturers’ Conference (SATMC), representing Continental, Bridgestone, Goodyear and Sumitomo, applied to ITAC for anti-dumping duties to be imposed, alleging that prices at which tyres were being imported from China constituted dumping and that this was causing harm to the SACU industry, including putting 6 000 jobs in local tyre manufacturing at risk.

Advertisement

The Road Freight Association and National Taxi Alliance were, however, unhappy about the effect of the provisional duties on their operating costs. 

In terms of the Anti-Dumping Regulations, ITAC has a maximum of 18 months to complete the full investigation. This period expires on 29 July 2023. It is understood that its investigation is at an advanced stage.

Because the provisional anti-dumping duty expired prior to the imposition of definitive anti-dumping duty, importers of these tyres who imported and paid provisional duties may now apply to SARS for a refund of duties paid.

Despite the expiry of the provisional measures, if ITAC finds that that the dumped imports caused or threatened to cause material injury to the SACU industry, it may decide to recommend the imposition of a definitive duty on those tyre imports.  Definitive duties would have to be implemented before 29 July 2023 – if they are not, there will be no scope to introduce protective duties later to assist the SACU tyre manufacturing industry.

The sooner ITAC and the minister finalise the matter, the better for the tyre industry.  Whether or not duties are imposed, finalising the investigation will bring certainty to the industry.

Written by Meluleki Nzimande, Partner at Webber Wentzel

 

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now