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).

  • Duty increase investigation on sulphates, alums, peroxosulphates of copper

    The International Trade Administration Commission (ITAC) initiated a duty increase investigation on sulphates, alums, peroxosulphates of copper. The products under investigation fall under tariff subheading 2833.25 and are currently duty-free. The applicant, Kimleigh Chemicals SA (Pty) Ltd is requesting a 10% duty. Motivating for the duty increase, the applicant indicated that local producers do not

    July 23, 2021
  • NRCS levy returns: What you need to know

    Importers and manufacturers of products falling with the scope of the National Regulator of Compulsory Standards (NRCS) technical regulations are required by law to submit levy returns. Despite this requirement, many importers often find out about levy returns under unpleasant circumstances. This is either during a random inspection by NRCS officials or after a container

    July 12, 2021
  • Anti-dumping duties on frozen chips removed

    The anti-dumping duties on frozen chips imported from Belgium and Netherlands have been terminated. Although the gazette was published on 9 July 2021, the termination applies retrospectively from 26 January 2021. It was necessary for the International Trade Administration Commission (ITAC) to terminate the anti-dumping duties because the sunset review investigation was not finalised within

    July 12, 2021
  • New industrial rebate for warp knit fabrics used in manufacturing upholstered furniture

    The new industrial rebate on warp knit fabrics has been implemented today, 28 May 2021. The warp knit fabric imported duty-free under the rebate will specifically be used in manufacturing upholstered furniture. An industrial rebate enables a local manufacturer to import raw materials and components without incurring an import duty. The rebate can be created

    May 28, 2021