Anti-dumping duties are typically imposed to protect local industries from unfairly priced imports, particularly where goods are sold below cost or subsidised in their country of origin. In this case, the concern was that duties applied to Chinese tyre imports were being undermined through transshipment via third countries.
Image: Leon Nicholas
South Africa’s International Trade Administration Commission (ITAC) has terminated its investigation into the alleged circumvention of anti-dumping duties on tyre imports, after missing a key regulatory deadline and receiving direction from the government to restart the process.
The development creates temporary relief for importers but uncertainty for local manufacturers, as a renewed investigation could once again place tyre imports under scrutiny.
The probe, launched in September 2024, focused on claims that existing anti-dumping duties on tyre imports from China were being bypassed through so-called “country hopping”. This involved routing products via Cambodia, Thailand and Vietnam before entering the South African market.
However, ITAC confirmed that the investigation was terminated with immediate effect on Friday after the statutory 18-month period for completing an anti-circumvention review expired on 20 March 2026.
The decision also follows intervention by Department of Trade, Industry and Competition, with the Minister declining to approve ITAC’s recommendation and instead instructing that the matter be referred back for reconsideration.
As a result of the lapsed deadline, the current investigation cannot be continued under South Africa’s Anti-Dumping Regulations, effectively nullifying the process. ITAC said it is now legally unable to impose any anti-circumvention duties linked to the case.
The investigation covered a range of new pneumatic rubber tyres used in passenger vehicles, buses and trucks, which fall under several tariff subheadings within the customs classification system.
Anti-dumping duties are typically imposed to protect local industries from unfairly priced imports, particularly where goods are sold below cost or subsidised in their country of origin. In this case, the concern was that duties applied to Chinese tyre imports were being undermined through transshipment via third countries.
With the termination of the probe, no additional duties will be imposed on tyre imports entering South Africa through the identified routes, at least for now. The dumping duty stands at 41.47% on all exporters not specifically named in the Government Gazette, effective for a six-month period from late May to late November 2025.
However, the matter is far from closed. The Minister of Trade, Industry and Competition, Parks Tau, has directed that the investigation be initiated afresh, suggesting that the government remains concerned about potential circumvention practices.
ITAC indicated that detailed reasons for Tau's decision will be published alongside its final determination, providing further clarity on the next steps.
BUSINESS REPORT