The Tyre Importers Association of South Africa (Tiasa) has applied to court to compel International Trade Administration Commission (Itac) and the SA Tyre Manufacturers Conference (Satmc) to disclose critical information being withheld with respect to Satmc’s application for the imposition of anti-dumping duties on imported tyres, and to challenge the manner in which the Itac is conducting the investigation.
Companies importing tyres into South Africa have been up in arms since the application was launched a few weeks ago by the Satmc.
Satmc – made up of Continental, Bridgestone, Goodyear and Sumitomo – has applied to Itac for the imposition of substantial additional duties of between 8 and 69 percent on passenger, taxi, bus and truck vehicle tyres imported from China. There are already import duties levied on tyres of between 25 and 30 percent.
Sumitomo manufactures the Dunlop brand.
Charl de Villiers, the chairperson of Tiasa, said: “We are operating in the dark when it comes to this application for additional duties, and the stakes are high for South Africa. If Itac decides to impose the maximum duty percentage requested by Satmc, we could see price increases range from 41 percent for taxi tyres, 38-40 percent for passenger tyres and an average of 17 percent for truck and bus tyres. These increases will have dire consequences for commuters, the transport sector and consumers, who are struggling with climbing inflation.
Last week, Stats SA announced that consumer inflation had accelerated to a new 13-year high of 7.8 percent, saying the usual suspects of food, fuel and transport costs were the main drivers.”
Domestic manufacturers are unable to produce the full range of tyres, Tiasa states in a press release, and so it imports 80 percent of the variety that it sells to meet local demand.
Satmc concedes that in addition to manufacturing tyres locally, it also imports tyres, but refuses to disclose what it imports, from where, and for what reason.
Donald MacKay, the chief executive of XA Global Trade Advisors, said: “This information is critical, as causality is a foundational principle of an anti-dumping case. In other words, it’s necessary to prove that any injury to the local industry must have been caused by the dumping, and not by something 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. They would therefore need to demonstrate a compelling reason for the imports.
“This is not confidential information, and it is material to their import duty application and their rationale. For example, we know Continental and Goodyear import 100 percent of truck and bus tyres, yet these domestic producers are importing these tyres instead of purchasing them from the other domestic producers who do manufacture them locally. Why? 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.”
BUSINESS REPORT