The South African Revenue Service (SARS) has implemented provisional anti-dumping duties on new pneumatic tyres imported from Vietnam, Thailand, and Cambodia as of 29 May 2025.
This action comes after an anti-circumvention investigation initiated by the International Trade Administration Commission (ITAC), responding to concerns that Chinese tyre manufacturers were evading existing tariffs by distributing products through affiliates in Southeast Asia, a practice often referred to as “country hopping.”
The newly imposed 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.
This measure targets various tyre types categorised under specific tariff subheadings including motor car tyres and bus and lorry tyres.
This situation stems from a prior investigation launched by ITAC in 2022, prompted by an application from the South African Tyre Manufacturers Conference (SATMC).
The findings of that inquiry revealed that dumping practices were inflicting material harm on local tyre manufacturers, leading to the imposition of anti-dumping duties as high as 41% on non-cooperating Chinese exporters.
Those producers that complied with the investigation were granted reduced duties ranging from 7% to 15%.
However, in the aftermath of these duties, imports of tyres from Thailand, Vietnam, and Cambodia surged. SATMC accused Chinese exporters of circumventing the imposed duties by routing their products through entities in these countries.
Responding to these allegations, ITAC initiated an anti-circumvention investigation, uncovering substantial operational ties between Chinese tyre manufacturers and their affiliated companies in Southeast Asia.
According to evidence presented during this investigation, the companies identified as both dumping and circumventing the regulations include Sentury Tire, Huayi Group, Prinx Chengshan, and Linglong, among others based in Thailand and Vietnam.
Notably, a few exporters such as Vietnam Cofo, Firemax (Cambodia), and Haohua (Vietnam) were not found guilty of either dumping or circumvention.
The South African Tyre Manufacturers Conference (SATMC) told Business Report that they welcome the anti-dumping duties.
SATMC said, “According to ITAC’s preliminary report, there is evidence that there was circumvention taking place in the form of country hopping and that there was dumping into the SACU region in the period reviewed. The provisional duties will be in place for the next six months and the SATMC believes that this is a strong move to address the unfair trade of tyres in South Africa. It is also a bold step to protect not only the local producers namely, Bridgestone, Continental, Goodyear and Dunlop Tyres, but also to ensure fair trade for the compliant importers.”
“The ITAC investigation will now continue with its Final Investigation Phase, during which ITAC will study all interested parties’ comments and verify information that was submitted, before concluding the investigation. SATMC and its members remain committed to the country and maintaining a sustainable future for the tyre industry in SA,” SATMC further said.
For those impacted by these provisional duties, the next steps are crucial.
These measures will remain in effect while ITAC finalizes its investigation, with a possibility of establishing definitive duties that could remain for up to five years.
Importers, particularly those sourcing tyres from Southeast Asia, are urged to closely evaluate their risk exposure, mindful of the potential for significant penalties issued by SARS for misinterpretations of anti-dumping duty applications.
As the situation unfolds, interested parties have until 12 June 2025, to respond to ITAC’s preliminary determinations.
Those wishing to represent their views directly to the Commission must submit requests for oral hearings by 25 July 2025.
With this ongoing investigation and potential long-term implications for trade and industry, stakeholders in the South African tyre market are urged to stay informed and proactive.
BUSINESS REPORT
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