Anti-dumping duties against Chinese exporters of car, bus and lorry tyres to SA have expired, leaving local producers potentially exposed to far cheaper products that can be dumped on the market, reports Moneyweb.

The Chinese manufacturers are also entitled to claim a refund from SARS for the 38.3% provisional duties imposed on them since September last year.

The International Trade Administration Commission of SA (Itac) imposed these duties for six months pending the finalisation of its investigation into the allegations of dumping.

However, the provisional duties lapsed before the investigation was completed. In terms of World Trade Organisation rules, investigations should be completed within one year, and in no case more than 18 months after initiation.

Itac says it has until 29 July to complete its investigation. The South African Tyre Manufacturers Conference (SATMC), representing Bridgestone, Continental, Goodyear and Sumitomo, applied for protection against dumping from imported Chinese tyre manufacturers.

The commission found there was prima facie evidence that the tyres were imported at dumped prices, which caused material injury to local manufacturers and the Southern African Customs Union (Sacu) industry. The provisional duties were imposed to prevent further injury.

Itac says once the investigation is finalised it will make a recommendation to Minister of Trade, Industry & Competition Ebrahim Patel.

Full Moneyweb report