The US is not alone in identifying several south-east Asian neighbours through which China reroutes export cargo to avoid anti-dumping duties.
According to Tonderai Chibasa of XA Global Trade Advisors (Xagta), the South Africa Revenue Service (Sars) has implemented provisional anti-dumping duties on new pneumatic tyres imported from Vietnam, Thailand and Cambodia.
Chibasa, who heads up Xagta’s business unit for Tariff and Trade Remedies, said Sars “follows an anti-circumvention investigation initiated by the International Trade Administration Commission (Itac) into allegations of ‘country hopping’ by Chinese tyre producers seeking to avoid existing duties”.
Unless not explicitly excluded in the Government Gazette, a dumping duty of 41.47% now applies to all exports from Vietnam, Thailand and Cambodia.
Chibasa said the latest development in a long-standing tyre-dumping disagreement with China went back to 2022, when Itac launched an investigation into the matter.
It came after a relevant application for such an investigation was lodged by the South African Tyre Manufacturers Conference (SATMC), Chibasa said.
“The Commission found that dumped imports were causing material injury to the domestic manufacturing industry. As a result, final anti-dumping duties up to 41% for non-cooperating exporters were imposed on Chinese-origin tyres. Producers that responded and were selected as part of the sample received dumping duties ranging between 7% and 15%.”
Not long after the duties were imposed, it was found that import volumes from Thailand, Vietnam, and Cambodia had increased.
“SATMC alleged that Chinese exporters were circumventing the duties by routing products through related entities in these countries, a practice referred to as “country hopping,” Chibasa said.
“In response, ITAC launched an anti-circumvention investigation, backed by evidence of ownership and operational ties between Chinese manufacturers and affiliated companies in Southeast Asia. ITAC’s preliminary finding was that circumvention was taking place and that provisional measures were necessary pending the final outcome of the investigation.”
Chibasa identified the following companies as “found to be both dumping and circumventing the original anti-dumping duties on Chinese-origin tyres: Sentury Tire (Thailand), Huayi Group (Thailand), Prinx Chengshan (Thailand), Linglong (Thailand), General Rubber (Thailand) and Sailun (Vietnam)”. “On the other hand, the following exporters were not found to be dumping or circumventing: Vietnam Cofo, Firemax (Cambodia) and Haohua (Vietnam).”
Xagta said the provisional duties would remain in place for six months while Itac completed the investigation. The final outcome may result in definitive duties that could remain in force for five years.
Importers should assess their exposure, particularly those sourcing from Southeast Asia. Sars has previously issued significant penalties to importers misinterpreting the scope and application of anti-dumping duties on China, especially concerning whether named exporters and producers are covered by the gazetted measures.
Interested parties had until 12 June to respond to ITAC’s preliminary determination, Chibasa said.
On 2 April, the US administration of President Donald Trump imposed “reciprocal tariffs” on a host of countries, including Vietnam (46%), Cambodia (49%), and Thailand (36%), for allowing China to reroute US-bound cargo through their territory.
Just over a month later, in early May, principal shipping analyst Peter Sand at sea freight intelligence platform, reported a dramatic surge in cargo from China to Vietnam, coinciding with a notable drop in direct exports from China to the US.
