South Africa’s trade authorities have slapped anti-dumping tariffs on top-loading washing machines imported from China and Thailand after finding they were undercutting prices and harming domestic producers.
The decision comes as Pretoria moves to shield local industry from cheap imports that are displacing jobs.
The tariffs, to be imposed for at least five years, follow an investigation by the International Trade Administration Commission of South Africa (Itac), which found imports from the two countries were hurting domestic producers.
“After considering comments on the essential facts letters, the commission made a final determination that the subject product originating in or imported from China and Thailand was being imported into the SACU market at dumped prices, thereby causing material injury, and that there is a causal link between the dumping of the subject product and the material injury suffered by the SACU industry,” Itac said in a government notice on Thursday.
“Therefore, the commission made a recommendation to the minister of trade, industry and competition to impose definitive anti-dumping duties on the subject product originating in or imported from China and Thailand.”
The minister approved the recommendation from Itac, with the South African Revenue Service (Sars) moving to implement the tariffs.
Fully automated top-load machines produced by Chinese firm Wuxi Little Swan Electric will attract a 9.39% anti-dumping duty, as will the same product manufactured by Hefei Midea Laundry Appliances.
Midea, which employs about 150,000 people in China, operates about seven plants in Thailand.
Top-load machines produced by Hisense, a Chinese multinational major appliance and electronics manufacturer, will attract a 7.67% anti-dumping duty.
Washing machines from Thailand will attract particularly steep anti-dumping duties. Top-load models manufactured by Thai Samsung Electronics will face tariffs of 26.06%, while those produced and exported by other manufacturers in Thailand will attract a 47.23% duty.
Price suppression
The Itac process followed a complaint by Defy, which submitted evidence showing it experienced injury in the form of price suppression and undercutting, decline in profits, decline in return on investments, negative effects on cash flow, and increase in inventories in 2022-24.
Defy produces more than 2-million products a year in its two factories in South Africa. The department of trade, industry and competition has over the past year taken several steps to protect local industries from cheap imports, particularly from China, South Africa’s largest trading partner and geopolitical ally.
This is as South Africa continues to have a deep trading imbalance with China, which exports finished goods to South Africa, while South Africa supplies it with inputs.
In another development, Itac has found prima facie evidence that screws and bolts imported from China and Malaysia have a dumping margin [difference between the normal value of a product in its home market and its lower “export price” to another country] of more than 100%.
“The allegation of dumping is based on a comparison between the normal values and the export prices for China and Malaysia, respectively. The normal values were determined based on export prices to various third countries,” Itac said.
“The normal values for China were third-country exports from China to Canada and the US. The normal values for Malaysia were third-country exports to Canada. The export prices for both countries were based on official import statistics obtained from Sars.”
On screws, Itac found that China’s dumping margin was a 155.36%, while products from Malaysia had a margin of 181.18%.
Bolts from China carried a dumping margin of 67.97%, while those from Malaysia had a margin of 272.22%.
Itac will now embark on a full-blown investigation, which might lead to hefty anti-dumping duties on screws and bolts imported from the two countries.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.