South African tyre importers have intensified their dispute with 4 home tyre producers over their utility to the International Trade Administration Commission (Itac) for extra import duties on imported tyres from China.
The Tyre Importers Association of South Africa (Tiasa) confirmed on Tuesday that it lodged an utility with the High Court in Pretoria on 3 August.
It desires the court docket to:
- Compel Itac and the SA Tyre Manufacturers Conference (SATMC) to reveal crucial info that it claims is being withheld concerning the latter’s utility for the imposition of anti-dumping duties on imported tyres; and
- Challenge the way wherein Itac is conducting the investigation.
SATMC’s 4 members are Continental, Bridgestone, Goodyear and Sumitomo.
Tiasa mentioned the SATMC and Itac each gave discover on Tuesday of their intention to oppose the appliance, and {that a} court docket date has not but been set for the matter to be heard however it’s prone to happen early in 2023.
Confirmations
Itac communications supervisor Thalukanyo Nangammbi confirmed on Tuesday the appliance has been acquired by Itac, which is within the means of acquiring recommendation from its authorized representatives.
Nangammbi mentioned the matter is sub judice and it might due to this fact be inappropriate for Itac to remark any additional at this stage.
SATMC managing government Nduduzo Chala confirmed that SATMC has acquired Tiasa’s discover of movement and mentioned it’s at present being addressed.
At difficulty
Tiasa’s stance is that import duties of between 25% and 30% are already levied on imported tyres and that SATMC has utilized to Itac for the imposition of considerable extra duties of between 8% and 69% on passenger, taxi, bus and truck automobile tyres imported from China.
Tiasa chair Charl de Villiers mentioned if Itac decides to impose the utmost responsibility proportion requested by the SATMC, imported tyre costs may enhance from 41% for taxi tyres, 38-40% for passenger tyres, and a mean of 17% for truck and bus tyres.
“These increases will have dire consequences for commuters, the transport sector and consumers, who are struggling with climbing inflation,” he mentioned.
Read: SA motorists, transport operators ‘will be hardest hit by proposed tyre duties’
De Villiers added that Statistics SA reported final week that client inflation had accelerated to a brand new 13-year excessive of seven.8%, with “the usual suspects of food, fuel and transport costs” the principle drivers of the rise.
‘In the dark’
He mentioned the stakes are excessive for South Africa however Tiasa is working in the dead of night in regard to the appliance for extra duties as a result of SATMC is refusing to reveal its personal import info.
According to De Villiers, home producers are unable to provide the total vary of tyres, import 80% of the range they promote to fulfill native demand, and refuse “to disclose what they import, from where, and for what reason”.
He mentioned Tiasa is asking the court docket to:
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Direct Itac to treatment its sampling;
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Provide Tiasa with SATMC’s import knowledge and the explanations for the imports; and
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Allow Tiasa enough time to make a submission to Itac earlier than it takes any choice on the imposition of duties.
“If the present course of will not be corrected, it’s possible that Itac will impose provisional duties with out SATMC’s import info, or certainly Tiasa’s submissions, which have – to this point – been excluded from consideration by Itac.
“This will be a clear impingement on the rights of affected parties to meaningfully participate in this process,” he mentioned.
Itac investigation challenged
XA Global Trade Advisors CEO Donald MacKay mentioned Itac acquired submissions from greater than 60 firms in response to the investigation however determined to solely overview a small pattern of submissions as the idea for its remaining choice.
MacKay mentioned Itac refused to permit Tiasa to make any remark or present enter on the sampling methodology.
“With a posh product like tyres, the place the native market sells over 3 000 totally different fashions, it’s virtually unimaginable to pick a very consultant pattern.
“To base a duty decision on such a flawed process is deeply concerning,” he mentioned.
MacKay added that the knowledge Tiasa has requested is crucial as a result of causality is a foundational precept of an anti-dumping case and it’s essential to show that any harm to the native business will need to have been attributable to the dumping and never by one thing else.
“If SATMC members are importing a significant volume of tyres themselves, they would be inflicting their own injury, which would need to be offset for any injury they claim,” he mentioned. “They would therefore need to demonstrate a compelling reason for the imports.”
MacKay pressured that this isn’t confidential info and it’s materials to their import responsibility utility and rationale for it.
“SATMC has refused to share any of this information with Tiasa, and Itac has accepted this. We have therefore been forced to apply to court to compel them to do so,” he mentioned.
SATMC has supplied ‘all required information’
Chala mentioned SATMC utilized to Itac for an investigation and supplied proof to help the place that tyres imported from China at unfairly low costs are inflicting materials harm to the native business.
Read: Bridgestone’s Port Elizabeth tyre plant will shut on November 15 [2020]
He mentioned SATMC continues to cooperate with Itac and has supplied all required info to Itac to help the investigation, which was initiated on 21 January and remains to be ongoing.
Chala mentioned the conclusion of the preliminary section of the investigation is awaited and thereafter a preliminary report might be revealed setting out Itac’s preliminary choice.
He mentioned events may have 14 days from the date of publication of the preliminary report back to remark in writing to Itac.
Chala mentioned Itac will then proceed with its remaining investigation section, throughout which it will overview all events’ feedback and confirm the knowledge that was submitted earlier than issuing a vital information letter.
This might be adopted by Itac’s remaining dedication, which should be revealed on or earlier than 31 July 2023, he mentioned.
Listen to Fifi Peters’s interview with Tiasa chair Charl de Villiers: