Anti-Dumping Duties

Anti-dumping investigations are complex and can significantly impact market access. With extensive experience with ITAC investigations and processes, we help manufacturers or producers prepare and file anti-dumping complaints. If you are an importer or exporter impacted by an anti-dumping investigation, time and expertise are of the essence. We can help.

— How anti-dumping cases begin

Dumping occurs when a foreign company exports a specific product into South Africa at a price lower than what the same product is sold in its home market. The level of anti-dumping duties imposed is determined by the extent of dumping.

An anti-dumping case starts with the local manufacturers or producers preparing an application showing:

Evidence that suggests dumping is taking place.

Evidence that suggests that injury to domestic producers is taking place.

Evidence that suggests a causal link between the alleged dumping and injury.

For an anti-dumping duty to be successfully imposed the above key aspects need to be proven.

— The investigation Process

— Submission and evaluation of application

A team of ITAC investigators evaluates submitted anti-dumping applications to determine if there is a case. Applications are prepared in a specific format and require specific information. The investigation team will check if the application meets ITAC requirements. Applications that do not meet the requirements are sent back to the applicant for correction.

— Verification and initiation of investigation

Once the application is accepted as properly documented, the investigation team will verify the information provided against the applicant’s company records.

The purpose of verification is for ITAC to satisfy itself that the provided information is reasonable and reliable. Unverifiable information means the matter will not proceed and the application will be rejected.

— Filing of responses by importers and their foreign suppliers or exporters

Assuming verification goes well and an investigation is formally initiated, importers and exporters have roughly 37 days to make submissions to ITAC. The submitted information by importers and exporters is also verified against the company records. It is vital to provide accurately substantiated and verifiable information.

— The decision

A preliminary decision is first made. The decision can be to impose preliminary anti-dumping duties while the investigation continues. Preliminary duties will be in place for a maximum of 200 days.

Anti-dumping duties are calculated for each exporter whose information was accepted by ITAC. The anti-dumping duty is imposed on the foreign exporter but paid by the importer.

Exporters who do not participate in the investigation will be subject to the countrywide duty or residual duty.

A final decision is taken when ITAC has completed its investigation. The preliminary duties may be converted to final duties. Alternatively, the final duties may be lower or higher than the preliminary duties.

Anti-dumping investigations take 12 months and under exceptional circumstances can go up to 18 months.