Countervailing Duties

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).

  • Provisional anti-dumping duties imposed on pasta imported from Egypt, Latvia, Lithuania and Turkey

    Provisional anti-dumping duties have been imposed on pasta imported from Egypt, Latvia, Lithuania, and Turkey. The anti-dumping duties came into effect on 1 April 2021 and will remain in place until 16 September 2021. Thereafter, final anti-dumping duties may or may not be imposed. However, considering that ITAC has already made a preliminary finding of

    April 5, 2021
  • Anti-dumping investigation on clear float glass imported from Malaysia initiated

    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

    March 19, 2021
  • The poultry tariff structure under review

    The International Trade Administration Commission (ITAC) has initiated an investigation to review the tariff structure on poultry. The investigation has initiated following a directive from the Minister of Trade, Industry, and Competition. The South African tariff book contains tariff codes at 6 digits and 8 digits levels. The 6 digits tariff codes are the same

    March 17, 2021
  • Creation of temporary rebate provision of customs duties and safeguard duties on flat steel products

    On 16 March, the International Trade Administration Commission (ITAC) initiated a rebate investigation on safeguard duties and ordinary Customs duties covering various flat-rolled products. The investigation has initiated following a policy directive from the Trade, Industry, and Competition Minister to investigate the possibility of creating the rebate. A rebate provides an exemption of duty payment. In

    March 17, 2021