| South Africa - a potential market for pharmaceutical and medical equipment manufacturers South Africa initiates anti-dumping tax evasion investigation on car and bus tires |
Regarding the case of the Republic of South Africa initiating an investigation against anti-dumping tax evasion on car, bus and truck tires originating or imported from Thailand, Cambodia and Vietnam, with allegations of evading anti-dumping tax currently applied to China, the Department of Trade Remedies, Ministry of Industry and Trade has just announced instructions for related manufacturing/exporting enterprises on how to participate in the case.
Accordingly, the case was requested by the South African plaintiff after South Africa imposed anti-dumping duties on similar products originating from China in July 2023. After the imposition of duties, there was a phenomenon of a decrease in the export volume of taxed products from China to South Africa, while the export volume of this product from Thailand, Cambodia and Vietnam to South Africa increased.
The plaintiffs alleged that Chinese enterprises had used their affiliates in Vietnam, Thailand and Cambodia to divert exports from Vietnam, Thailand and Cambodia to South Africa (a form of “country hopping” - exporting through affiliates in third countries).
 |
| Preliminary conclusions in the case will be issued within 6 months from the date of initiation of the investigation, around March 25, 2025. Illustration photo |
The Trade Remedies Authority of South Africa said that the Trade Remedies Investigation Authority of South Africa (ITAC) requires all Vietnamese companies that export or do not export investigated products to South Africa during the investigation period to answer the Investigation Questionnaire to provide information to ITAC, along with supporting documents to serve the ITAC investigation. This answer is the basis for ITAC to keep in the case file. In case the company does not answer the Questionnaire, the company will be considered as uncooperative and later when exporting to South Africa, it will be subject to the tax rate for uncooperative companies (usually very high).
In addition, the South African Trade Remedies Authority will calculate a separate anti-dumping duty for each company that answers the Questionnaire. Currently, the proposed duty rate for Vietnam is 84%, however, the actual duty rate may change depending on the data and the level of cooperation of each company. This duty rate will be maintained for 05 years, unless the enterprise requests ITAC to conduct a change of circumstances review (after 1 year if there is a significant change of circumstances).
After receiving the Responses from Vietnamese enterprises, the South African Trade Remedies Investigation Authority may request additional/clarification information. The preliminary conclusion will be issued within 06 months from the date of initiation of the investigation, around 25/03/2025.
Businesses can request the South African Trade Remedies Authority to hold a public hearing to provide their views on the case. A final decision is usually issued within a maximum of 12 months (extendable to 18 months), around September 2025.
Currently, 7 Vietnamese companies have submitted responses/answers to the Questionnaire of the South African Trade Remedies Investigation Authority and some companies have requested an extension of the Questionnaire. The South African Trade Remedies Investigation Authority has agreed to extend the deadline until 11/11/2024 (only for companies that have requested an extension), the remaining companies that have not submitted an extension request will still be subject to the old deadline of 28/10/2024).
Therefore, the Trade Defense Department recommends that relevant enterprises: Promptly respond and submit on time according to the instructions of the South African Trade Defense Investigation Agency, in order to protect the interests of Vietnamese exporting enterprises; Regularly provide information and exchange information with the Trade Defense Department to receive timely support; Diversify export markets, in case of a decision to impose taxes by South Africa.
Source: https://congthuong.vn/huong-dan-tham-gia-vu-nam-phi-dieu-tra-chong-lan-tranh-thue-chong-ban-pha-gia-lop-xe-o-to-354074.html
Comment (0)