Investigation into the alleged dumping of spades and shovels originating in or imported from China and India and picks, rakes and forks from India: Final Determination

25 Apr 2023

On 22 October 2021, the International Trade Administration Commission of South Africa, gazetted a notice of the initiation of an investigation into the alleged dumping of spades and shovels of a maximum blade width of more than 150mm but not exceeding 200mm originating in or imported from the People’s Republic of China (China) and the alleged dumping of spades and shovels of a maximum blade width of more than 150mm but not exceeding 320mm, picks, other rakes (excluding those with not more than 8 prongs) and other forks, with a prong length exceeding 150mm originating in or imported from the Republic of India (India).

The application was lodged by Ussher Inventions (Pty) Ltd (trading as Lasher Tools), the major SACU producer of the subject products, supported by Ottimo Products CC. These producers, together constitute 100% of the domestic production of the subject products in the Southern African Customs Union (SACU). The investigation was initiated after the Commission considered that there was prima facie evidence that dumping of the subject products originating in or imported from China and India is taking place, thereby causing and threatening to cause material injury to the SACU industry.

After considering all responses and comments received from interested parties, the Commission made a preliminary determination that:

• Spades and shovels of a maximum blade width of more than 150mm but not exceeding 200mm originating in or imported from China were being dumped into the SACU market;
• Spades and shovels of a maximum blade width of more than 200mm but not exceeding 320mm, picks, other rakes (excluding those with not more than 8 prongs) and other forks with a
   prong length exceeding 150 mm originating in or imported from India were being dumped into the SACU market;
• The SACU industry is experiencing material injury and a threat of material injury; and
• There is a causal link between the alleged dumped imports and material injury/ threat of material injury experienced by the SACU industry.

The investigation on spades and shovels against India was on products which are imported under tariff subheadings 8201.10.05 and 8201.10.10. The Commission also made a preliminary determination to terminate the investigation on spades and shovels classifiable under tariff subheading 8201.10.05 originating in or imported from India and not to impose provisional payments as the import volumes of such spades and shovels were below 3% as a percentage of total imports to the SACU market and therefore negligible.

The Commission requested the Commissioner of South African Revenue Services (SARS) to impose provisional payments for a period of six months, while the investigation continued. The provisional payments were imposed from 13 May 2022 until 12 November 2022.

Subsequently, the Commission invited comments from all known interested parties on its preliminary determination. After considering all interested parties’ submissions and comments received, the Commission made a final determination that:

• Spades and shovels of a maximum blade width of more than 150mm but not exceeding 200mm originating in or imported from China were being dumped into the SACU market;
• Spades and shovels of a maximum blade width of more than 200mm but not exceeding 320mm, picks, other rakes (excluding those with not more than 8 prongs) and other forks with a prong length
   exceeding 150 mm originating in or imported from India were being dumped into the SACU market;
• The SACU industry is experiencing material injury and a threat of material injury; and
• There is a causal link between the alleged dumped imports and material injury/ threat of material injury experienced by the SACU industry and the other known factors do not detract from the causal link.

The Commission therefore decided to recommend to the Minister of Trade, Industry and Competition that definitive anti-dumping duties on imports of the subject product originating in or imported from China and the subject products originating in or imported from India be imposed.

The Commission also made a final determination to terminate the investigation on spades and shovels classifiable under tariff subheading 8201.10.05 originating in or imported from India and not to impose definitive anti-dumping duties as the import volumes of such spades and shovels were below 3% as a percentage of total imports to the SACU market and therefore negligible.

The Commission’s recommendation, detailed in the Commission’s Report No.704 was accepted by the Minister of Trade and Industry.

Please click on the link below to access the full report 704:
https://www.itac.org.za/upload/document_files/20230425030008_Final-Public-Report--704.pdf

ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA