With extensive experience with ITAC investigations and processes, we help manufacturers and producers prepare and file countervailing complaints.
The countervailing remedy is used to offset the impact of subsidies granted to foreign manufacturers exporting into the local market. A subsidy is a financial contribution made by (or on behalf of) a government or a public body that gives recipient companies a benefit.
Some subsidies exist to support domestic or social policies, for example supporting industries that help create new jobs. However, unfair subsidies provided to manufacturers in foreign countries can distort the SACU market, create unfair competition, and damage the competitiveness of the SACU industry competing with imported products whose manufacturers are subsidised.
How Countervailing cases begins
SACU manufacturers can apply for countervailing measures (usually in the form of duty) to counteract a subsidy, provided the subsidy is limited to a specific firm, industry, or group of firms or industries in the exporting country.
For a countervailing investigation to be initiated and result in a duty, the application must be properly documented and supported by evidence proving the following key aspects:
That the local industry, as a whole or the major proportion of it, has been materially injured or is threatened to be injured by imports originating from the country providing the subsidies.
The imports of the subsidized product are increasing in the SACU market.
A causal link between the increase of subsidized imports and the material injury of the local industry or threat should exist.
If successfully imposed countervailing measures will be in place for a period of 5 years. A review may be conducted towards the end of the 5-year period to determine if there’s evidence that the measures are no longer needed (e.g. the government of an exporting country may claim that the subsidy no longer exists).
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