SA investigates tyre imports from Vietnam for anti-dumping violations

South Africa has officially started investigating claims of tax evasion and unfair pricing, or “dumping,” involving car, bus, and truck tyres imported from Vietnam, Thailand, and Cambodia.

The investigation is being led by the South African Tyre Manufacturers Conference. It focuses on whether these countries are avoiding anti-dumping taxes that are already in place for tyres imported from China.

What exactly are anti-dumping taxes?

These are tariffs that a country applies to imported goods that are sold at a price lower than their fair market value or below the cost of production.

The goal of these taxes is to protect local industries from unfair competition. This can occur when foreign manufacturers undercut domestic prices by selling goods at unsustainably low rates.

By imposing anti-dumping taxes, South Africa aims to level the playing field and prevent foreign products from harming local businesses.

The South African government initially imposed anti-dumping duties on tyres from China in September 2022. These tariffs ranged from 7.18% to 43.60%.

Now, the focus has shifted to tyres from Vietnam, with the South African Tyre Manufacturers Conference alleging a dumping margin of up to 84%, writes the Việt Nam News.

Has China circumvented taxes via South-East Asia?

The investigation will cover tyres classified under specific import codes and span several time periods. The review will look at whether products imported from these countries between March 2022 and May 2024 have avoided the anti-dumping taxes applied to Chinese imports.

Vietnamese tyre manufacturers and exporters have reportedly been notified and have received detailed documentation. This includes the investigation questionnaire – which they must respond to by 28 October.

South Africa’s International Trade Administration Commission will assess the responses, conduct site visits, and hold hearings to determine whether tax evasion and dumping occurred, and what impact this may have had on South Africa’s domestic tyre industry.

How else could South Africa ensure fair trade?

Let us know by clicking on the comment tab below this article or by emailing info@thesouthafrican.com or sending a WhatsApp to 060 011 021 1.

You can also follow @TheSAnews on X and The South African on Facebook for the latest news.