The International Trade Administration Commission of SA (Itac) has initiated a review of an anti-dumping duty on unframed glass mirrors imported from fellow Brics member China after an application by SA’s sole manufacturer of the products.
The duty on Chinese unframed glass mirrors, which are between 2mm and 6mm thick, expires on December 12.
Springs-based PFG Building Glass, a division of the PG Group, produces 260,000 tonnes of float glass a year as well as laminated glass and mirror products.
“The applicant alleges that the expiry of the duty would likely lead to the recurrence of dumping and material injury,” Itac said in the Government Gazette.
“The applicant submitted sufficient evidence and established a prima facie case to enable the commission to arrive at a reasonable conclusion that a sunset review investigation of the anti-dumping duty on unframed glass mirrors originating in or imported from China, should be initiated.”
According to World Trade Organisation rules, any definitive anti-dumping duty should be terminated not more than five years after implementation.
The rule applies “unless the authorities determine, in a review initiated before that date, on their initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period before that date, that the expiry of the duties would likely lead to continuation or recurrence of dumping and injury”.
SA first imposed a provisional duty of 40.2% on imports of unframed mirrors from China in 2013, which was extended for a further five years in 2018 after a review.
Revue period
The trade authority said its investigation will analyse data from January 2022 to the end of December 2022, while an injury investigation involves the evaluation of data for the period January 2020 to December 2022.
In the Government Gazette dated September 22, Itac said the allegation of a recurrence of dumping was based on the comparison between the normal values and the export prices.
To achieve this predetermination, PFG’s independent consultant provided quotations for the domestic selling prices of the product in China. Those were compared to Sars import data and found that that the dumping margin was 55.94%.
“On this basis, the commission found that there was prima facie proof of the likelihood of the recurrence of dumping,” Itac said, adding that “the commission found that there was prima facie proof of the recurrence of material injury if the duty expires.”
The fact-finding mission includes sending out non-confidential versions of the application and questionnaires to all known importers, exporters and known representative associations. The mission will also have to consider estimates of the situation should the the anti-dumping duty expire.
“Depending on the outcome of the investigation, the commission may recommend the current anti-dumping duty of 40.2% be maintained, increased or even reduced,” Itac spokesperson Thalukanyo Nangammbi told Business Day. “At the moment we cannot pre-empt what the outcome of the investigation will be.”
SA recently imposed duties on imports of frozen French fries and passenger, truck and bus tyres imported from China. Several other anti-dumping probes are under way including yeast originating from Zimbabwe.
Trade, industry & competition minister Ebrahim Patel’s delay in implementing anti-dumping duties on frozen bone-in chicken portions from fellow Brics country Brazil has raised the ire of local producers.
Itac investigations concluded that Brazil, Spain, Poland, Ireland and Denmark were dumping chicken in the SA Customs Union area and causing material harm to local poultry producers.
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