35.9% duty on certain steel products gazetted

The government has gazetted a 35.9% duty on certain steel products that are originating in or imported from the People’s Republic of China. This amounts to a total duty payable of 45.9% if the existing 10% custom duty is added. The products concerned are galvanised coil – flat-rolled products of iron or non-alloy steel of a width of 600mm or more, clad, plated or coated, otherwise plated or coated with zinc, of a thickness of less than 0.45mm.

NEASA has lobbied for the non-introduction of this duty on products that are widely used by lower income citizens to provide basic shelter.

The duty will be imposed up until 16 September 2023 whereafter Government will make a final decision on whether to make it permanent or not. In the meantime, NEASA, on behalf of its members affected by this duty, will persist in opposing the permanent implementation of this tariff.

Preliminary determination synopsis
The South African Coil Coaters Association (“SACCA” or “the Applicant”), an industry body of the Southern African Customs Union (“SACU”) industry, lodged the application on behalf of its members. SACCA members were, at the time of the submission of the application, ArcelorMittal South Africa Limited (“AMSA”), Safal Steel (Pty) Ltd (“Safal”) and Duferco Steel Processing (“Duferco”). Together they constituted 100% of SACU domestic production of the subject product. AMSA is the major producer of the subject product and provided material injury information.

In terms of the International Trade Administration Commission’s (“the Commission”) Anti-Dumping Regulation (“ADR”) 27.1, the trade representatives of the People’s Republic of China (“PRC”) were informed that the Commission has received and accepted a properly documented application for the investigation of the alleged dumping of other flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, otherwise plated or coated with zinc, of a thickness of less than 0,45 mm, classifiable under tariff subheading HS 7210.49.10, originating in or imported from the PRC (“the subject product”).

The investigation was initiated through Notice No. 1342 of 2022 of Government Gazette No. 47296, dated 12 October 2022. Correction Notice No. 1354 of Government Gazette No. 47337, dated 21 October 2022, was published rectifying the typographical error of the tariff subheading under which the subject product is classified.

The investigation was initiated after the Commission considered that there was prima facie evidence to show that the subject product was being imported into the SACU market at dumped prices, causing material injury to the SACU industry.

Upon initiation of the investigation, the diplomatic representatives and all known foreign producers/exporters of the subject product in the PRC were sent a non-confidential copy of the application, initiation notice and foreign manufacturer’s/exporter’s questionnaires to complete. Importers of the subject product in the SACU were also sent a non-confidential copy of the application, initiation notice and the importer’s questionnaires to complete.

Questionnaire responses were received from two (02) producers/exporters in the PRC. Joint comments were received from three importers in the SACU. The two exporters/producers are Shandong Tongsheng Composite Material Co. Ltd. and Shandong Guanxian Rongda Composite Material Co. Ltd. Information submitted by the two exporters was considered deficient. In line with ADR 32.4, the Commission made a preliminary determination not to consider deficient responses of the two exporters/producers.

The Applicant also provided comments in response to the joint comments submitted by the three importers.

After considering all the comments received from interested parties, the Commission made a preliminary determination that the subject product originating in or imported from the PRC was being dumped, causing material injury to the SACU domestic industry. The Commission further decided to request the Commissioner for the South African Revenue Service (“SARS”) to impose provisional payments for a period of six months in order to protect the domestic industry while the investigation continues.