Lasher Tools requested an extension of another 5 years to the anti-dumping duties which are currently in place on garden tools. ITAC have accepted this request and kicked off a sunset review of these anti-dumping duties.

When anti-dumping duties are imposed, they remain in place for only 5 years, unless the domestic industry requests them to be extended. If ITAC believes there is merit in the application then they will initiate a sunset review. This is where we are right now. The anti-dumping on garden tools out of China are as follows:

Spades and shovels, of a maximum blade width of more than 200 mm but not
exceeding 320 mm
158.1c per kg
Picks262.7c per kg
Rakes with more than 8 prongs369.2c per kg
Forks, with a prong length exceeding 150 mm (excluding forks with 8 or moreprongs)480c per kg

If the case is left unchallenged, then it is quite likely that the duties will remain at this level for another 5 years.

Responding matters in anti-dumping case

At it’s heart anti-dumping applications make a very specific allegation against (in this case) Chinese companies, which is that they are exporting to South Africa at prices lower than they sell locally. This is dumping. If this behaviour harms the South African industry, which is what Lasher is alleging, then the anti-dumping duties will be imposed. If however the exporter can show that they are not dumping, they can be exempted from the anti-dumping duties or receive a lower duty.

The importers matter for a different reason. They could for example demonstrate other reasons besides lower import prices for their buying behaviour (breaking the causal link) and also the lesser duty rule can only be applied if importers cooperate. The lesser duty rule allows ITAC to impose a duty which is the lower of the margin of dumping and the margin of injury. These can yield significantly different outcomes depending on the specific facts of the case.

Responding matters though. No case have ever been won when neither exporters nor importers submit information to ITAC.

The deadline to respond is 29 October 2018, unless an extension request is filed with ITAC. The maximum extension allowable is 2 weeks.

If you wish to respond to this sunset review, please send a mail to info@xa.co.za.

 

 

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