Earlier this month, ITAC announced it had reached a final decision on whether or not anti-dumping duties are to be imposed on imported tyres from China, following an official application on the part of the SATMC (representative body for the four local tyre manufacturers), on 31 January 2023.
ITAC announced that anti-dumping duties of between 7.18 percent to 43.6 percent will be imposed on dumped imports of passenger, truck and bus tyres imported from, or originating in, China.
The SATMC welcomed the final determination by the International Trade Administration Commission (ITAC) and the decision by Minister of Trade, Industry and Competition, Ebrahim Patel, to impose anti-dumping duties, on what they refer to as unfairly traded imports of passenger, truck, and bus tyres from China. The duties – ranging from 7.18 percent to 43.6 percent depending on where tyres fall under the respective tariff classifications – will remain in place for five years, until July 2028.
Nduduzo Chala, SATMC Managing Executive, said, “as the SATMC, we applaud this decisive measure by ITAC and the Minister, which comes as a significant victory for the domestic tyre industry. The implementation of these final anti-dumping duties will serve to uphold fair trade practices and protect the economy against opportunistic pricing in the tyre sector, which has posed a threat to the future of the South African tyre industry.”
“The SATMC and its members, Bridgestone Southern Africa, Continental Tyre South Africa, Goodyear South Africa, and Sumitomo Rubber South Africa, played a pivotal role in advocating the imposition of the antidumping duties and actively participated in the investigation process conducted by ITAC. The tyre manufacturing body provided extensive data, analysis, and expertise to demonstrate the adverse effects of the dumped tyres from China on the domestic industry.
“We commend ITAC’s expert members for their diligent efforts in conducting a thorough investigation into this complex matter and arriving at a well-justified conclusion, which acknowledges the challenges faced by the domestic tyre manufacturing sector. We are also satisfied that the Minister found that the evidence of material injury to the industry was properly substantiated,” said Chala.
Conversely, the Tyre Importers Association of South Africa (TIASA), expressed their disappointment at ITAC’s decision, via a comment representing the interests of their members, many of whom source products from China.
“TIASA takes note of the final determination to impose dumping margins for tyres imported from China, but we are still of the opinion that it is not in the best interests of the consumer, as they are the only ones who will end up paying more for their tyres,” said Charl de Villiers, Chairman TIASA.
“The transport industry will be hit the hardest by these increases, which will lead to their cost base increasing considerably, leaving them no alternative but to increase their prices, which in turn, will negatively affect the consumer.
“While we have to accept the ruling, it is, however, disappointing that we could not deal with the confidentiality issue and that our consultant was not permitted to see the final calculations, to better understand the outcome and ruling. We do, however, welcome Minister Patel’s comment to review price increases by SATMC members, following the implementation of the dumping margins.
“Going forward, our focus will be to place more emphasis on illicit trade, which we believe is a massive risk to our members and the fiscus. As an industry, we should be joining forces to ensure the playing field is level,” he concluded.