On 14 April 2023, the South African Revenue Service (SARS) imposed anti-dumping duties of 232% on laminated safety glass originating in or imported from the People’s Republic of China (PRC). Laminated safety glass is used in residential and commercial building applications and in the automotive industry, where it is used by fabricators/manufacturers, distributors and replacement glazers. The decision to impose the anti-dumping duties follows an application by PFG Building Glass, a division of PG Group (Pty) Ltd to the International Trade Administration Commission of South Africa (ITAC) for action against the alleged dumped imports of laminated safety glass originating in or imported from PRC.
Dumping occurs in a situation where companies export their goods to foreign markets at prices (export price) lower than what they charge for the same product in their home market (normal value). Thus if the export price is lower than the normal value, dumping has occurred. When dumping causes material injury, countries are entitled to act in terms of WTO rules. Anti-dumping duties are then used to level the playing field between domestic producers and foreign competition. Anti-Dumping investigations are conducted within domestic law and in a manner consistent with the World Trade Organisation Anti-Dumping Agreement (ADA).
In the dumping investigation, PFG Building Glass alleged that imports of laminated safety glass originating in or imported from PRC were being dumped in the SACU market, thereby causing material injury and a threat of material injury to the SACU industry. After due verification of the information submitted by the applicant, the Commission considered that there was prima facie evidence that the alleged dumping of laminated safety glass originating in or imported from PRC was causing material injury to the SACU industry. ITAC initiated the investigation on 22 October 2021.
No interested parties commented on the initiation notice and the application.
The Commission made a preliminary determination that laminated safety glass originating in or imported from PRC were being dumped onto the SACU market, causing material injury to the SACU industry. On 18 March 2022, the South African Revenue Service, at the request of the Commission, imposed provisional payments of 232% on laminated safety glass originating in or imported from PRC, effective until 17 September 2022. No interested parties commented on the Commission’s preliminary determination. The Commission took all relevant comments made by the applicant parties into account. In making its final determination, the Commission found that laminated safety glass originating in or imported from PRC were exported to the SACU at dumped prices.
During the Commission’s examination of whether the SACU industry was experiencing material injury as a result of the dumped imports, the Commission found sufficient evidence to indicate that the material injury in the form of price suppression; price depression; decrease in profit; decline in return on investments; decline in SACU sales volume, decline in output, decline in productivity, negative effects on capacity utilization; and negative effects on net cash flow, decline in market share and slowdown in growth could be causally linked to the dumped imports.
The Commission therefore decided to recommend to the Minister of Trade and Industry that anti-dumping duties of 232% be imposed on laminated safety glass originating in or imported from PRC. The Commission’s recommendation, detailed in the Commission’s Report No. 697 was accepted by the Minister of Trade and Industry.
Please click on the link below to access the full report 697:
https://www.itac.org.za/upload/document_files/20230418090304_Report-No.697.pdf
ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA