Provisional anti-dumping duties imposed on Chinese wheelbarrows

06 Mar 2015

Provisional anti-dumping duties have been imposed on wheelbarrows originating or imported from the People`s Republic of China with effect from 06 March 2015. This follows an investigation initiated by the International Trade Administration Commission of South Africa (ITAC) on 20 June 2014 after Lasher Tools submitted an application on behalf of the SACU industry.

Lasher Tools submitted sufficient information and established a prima facie case that convinced the Commission that an investigation should be initiated on the basis of dumping, material injury and causality. This was published on 20 June 2014 in the Government Gazette (No 37740), under notice number 449.

During the investigation process, the interested parties had an opportunity to make comments and submit the information they deemed crucial for the investigation. The Commission made a preliminary determination that wheelbarrows originating or imported from the People`s Republic of China were being dumped into the SACU market, causing material injury to the SACU industry.

Comments submitted by interested parties on the preliminary determination within the specific time periods, will be considered by the Commission prior to making its final determination and recommendation to the Minister of Trade and Industry.

Therefore, the Commission requested SARS to impose the provisional measures on imports of wheelbarrows originating from the People`s Republic of China for a period of 24 weeks at the following percentages:

Producer/Manufacturer                     Rate of duty
Qingdao Youhe                                        32.32%
Qingdao Wantai                                      29.82%
All exporters (excluding Qingda Yongyi; Qingdao Youhe; and QingdaoWantai) 29.82%

Dumping occurs in a situation where companies export their goods to foreign markets at prices (export price) lower than what they charge for the same product in their home market (normal value). When dumping causes material injury to an industry in the market to which the products are exported to, it is considered unfair competition.

Therefore countries are entitled to act in terms of WTO rules. The idea is to the level the playing field between domestic producers and foreign competitors. Anti-Dumping investigations are conducted in terms of domestic law and consistent with the World Trade Organisation Anti-Dumping Agreement (ADA).