South Africa issues preliminary findings in anti-dumping duty evasion investigation on car, bus and truck tyres

On May 30, 2025, the International Administration Commission of South Africa (ITAC - South Africa's Trade Remedies Investigation Agency) published the Official Gazette on the Preliminary Conclusion in the case of anti-circumvention investigation (CLT) of anti-dumping duty (CBPG) on automobile, bus and truck tires originating or imported from Vietnam, specifically as follows:

Bộ Công thương•05/06/2025

General information about the case

Date of Initiation: On 20 September 2024, ITAC initiated an investigation into the matter at the request of the Complainant - the South African Tyre Manufacturers Association;

Goods under investigation: automobile, bus and truck tires under HS codes 4011.10.01, 4011.10.03, 4011.10.05, 4011.10.07, 4011.10.09, 4011.20.16, 4011.20.18 and 4011.20.26;

CBPG investigation period: November 1, 2022 - May 31, 2024;

Anti-dumping tax evasion investigation period: August 1, 2022 - July 31, 2024;

Related Enterprises: In this case, ITAC identified 06 Vietnamese enterprises that responded to the Initial Investigation Questionnaire. However, ITAC later sent a request for additional information (Deficiency letter) to the above 06 companies and only 03 Vietnamese enterprises submitted their responses. 02/03 fully cooperating companies were inspected on-site by ITAC in February 2025;

- Affected domestic industry: tire manufacturing industry of SACU (Southern African Customs Union, consisting of 5 member countries: South Africa, Botswana, Lesotho, Eswatini (formerly Swaziland) and Namibia).

Preliminary conclusions

ITAC believes that there has been a change in the trade pattern between China, Vietnam and SACU. Specifically, the volume of imports of the investigated product from China to SACU has decreased between the financial years 2021/22 and 2022/23 and 2023/24; while the volume of imports from Vietnam has increased sharply between 2021/22 and 2023/24, coinciding with the decline in imports from China;

The volume of imports from Vietnam to SACU in the period from August 1, 2023 to July 31, 2024 accounts for about 6% of the total import volume into this bloc, ranking second only to Thailand (13.89%). The above import volume from Vietnam is large enough to have an impact on reducing the effectiveness of the anti-dumping measures currently applied to China;

ITAC determined that there was dumping from Vietnam with a dumping margin of 78.90%

From the above factors, ITAC has preliminarily concluded that there is evasion of anti-dumping measures applied to China by Vietnam.

03 companies cooperated and fully answered the questionnaire, which was reviewed by ITAC and gave specific conclusions as follows:

02/03 The company was concluded by ITAC not to have evaded anti-dumping duties because it had not been established during the initial investigation with China and had not sold domestically or exported the investigated product to SACU during the investigation period;

The remaining 01 company was found to have evaded anti-dumping tax and was subject to a tax rate of 8.78%.

The remaining Vietnamese companies, due to their failure to fully cooperate with ITAC, received the national tax rate determined in the original investigation (base case) against China of 41.47%.

In the Notice of Preliminary Conclusion, ITAC decided to impose temporary anti-tax evasion tax on Vietnamese enterprises producing and exporting the investigated goods due to the situation of South African enterprises suffering losses during the investigation period. The temporary tax rate will be applied for a period of 06 months until the final Conclusion of this investigation case is available.

Next procedure

Within 14 days of the publication of the Preliminary Findings in the Official Gazette, businesses may submit written Comments on ITAC's Preliminary Findings. However, parties that do not respond fully and promptly in the early stages of the investigation will be required to provide reasons and convince ITAC why their comments should be considered.

ITAC will continue its investigation and issue its Final Conclusion, expected in September 2025. The South African Investigating Authority will then submit a formal anti-circumvention measure to the Minister of Trade and Industry for consideration.

Recommendation

In order to continue handling the next stages of the case, the Trade Defense Department recommends:

For the Vietnam Rubber Association: Promptly notify the Preliminary Conclusion to related enterprises producing and exporting investigated products; discuss further handling directions with enterprises and recommend support measures to the Government , if necessary.

For related manufacturing and exporting enterprises:

Carefully study the contents of ITAC's Preliminary Conclusions, and submit written comments to ITAC if necessary;

Closely monitor the developments of the case and fully cooperate with ITAC in the next phase of the investigation;

Any act of non-cooperation or insufficient cooperation may result in the South African Investigative Service using available evidence to the disadvantage or imposing high anti-avoidance tariffs on the business;

Consider in advance the proposal for ITAC to review and adjust anti-circumvention duties in the future in case of wanting to maintain exports to the SACU bloc;

Regularly coordinate and update information with the Department of Trade Defense to receive timely support;

Proactively diversify markets and export products to avoid being affected in case the incident leads to a final conclusion imposing taxes on the business.

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For more information, please contact: Foreign Trade Defense Handling Department, Trade Defense Department, Ministry of Industry and Trade , 54 Hai Ba Trung, Hoan Kiem, Hanoi (In charge: Bui Anh Dung, Phone: 091.523.9966, 0968.456.865. Email: [email protected] , [email protected] , website: http://trav.gov.vn/ .

Source: Department of Trade Defense

Source: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/nam-phi-ban-hanh-ket-luan-so-bo-trong-vu-viec-dieu-tra-chong-lan-tranh-thue-chong-ban-pha-gia-doi-voi-lop-xe-o-to-xe-buy.html