- March 19, 2021
- Posted by: Taapano Paradza
- Category: Anti Dumping
The International Trade Administration Commission (ITAC) has initiated an anti-dumping investigation on clear float glass originating in or imported from Malaysia.
The anti-dumping application was lodged by PFG Building Glass, a division of PG Group (Proprietary). This is the only local manufacturer of the subject product.
Scope of the investigation
The products under investigation are clear float glass of a thickness of 3mm, 4mm, 5mm, 6mm, 8mm, 10mm, and 12mm.
The subject products are classified under tariff subheadings; 7005.29.17; 7005.29.23; 7005.29.25; 7005.29.35; 7005.29.45; 7005.29.55; and 7005.29.65.
Float glass anti-dumping investigations now frequent
The initiation of this investigation is likely an unwelcome development for Malaysian exporters and SACU importers. In November 2020, India imposed considerable final anti-dumping duties on float glass imported from Malaysia. The duties targeted products of a thickness between 4mm and 12mm.
In South Africa, this is the third new anti-dumping investigation on float glass within a space of four years. On 17 August 2018, an investigation was initiated against exporters from Saudi Arabia and the United Arab Emirates (UAE). Anti-dumping duties of 16.8% were imposed on the UAE and 23.9% on Saudi Arabia.
Shortly afterward, ITAC initiated an anti-dumping duty circumvention investigation on 23 August 2019 on clear float glass imported from Egypt. The investigation initiated while the Saudia Arabia and UAE investigation were still ongoing.
Without going into too much detail PFG alleged that since the imposition of the provisional anti-dumping duties (which are now final duties), one of the importers in the original investigation shifted sourcing of the products from related entities in Saudi Arabia and the UAE to its related entity in Egypt. This is known as country-hopping and it is a form of circumventing anti-dumping duties. The investigation resulted in a 27.26% anti-dumping duty on Guardian Egypt – Egyptian Glass Company SAE.
Are you impacted?
If you are importing float glass into the SACU market (South Africa, Botswana, Lesotho, Namibia, eSwatini) or exporting float glass from Malaysia into the above-mentioned countries you are impacted. Malaysian exporters that did not export to SACU during the investigation period can also participate in the investigation.
It is important for impacted parties to submit importer or exporter submissions to ITAC. The advantage of making submissions is that each exporter cooperating in the investigation will have its own anti-dumping duty calculated. If no dumping is found on the exporter, no anti-dumping duty will apply to the specific exporter.
This means anti-dumping duties will be different between cooperating exporters. Some exporters may end up with no anti-dumping duty, lower anti-dumping duty, or higher anti-dumping duty. It is important to note that anti-dumping duties are imposed on exporters and paid by importers.
All non-cooperating exporters or exporters that do not make submissions will face the countrywide anti-dumping duty (or residual duty). Typically, this duty is higher than that of cooperating exporters. An exporter who is not dumping but does not cooperate with the investigation unnecessarily ends up with an anti-dumping duty.
If you are impacted and need assistance in responding to the investigation, contact us as soon as possible at email@example.com.