The International Trade Administration Commission of South Africa (ITAC) has invited comment on its initiation of an investigation into the alleged dumping of ceramic and porcelain wall and floor tiles, excluding finishing ceramics, mosaic cubes and the like, classified in tariff subheading 6907.21 originating in or imported from India, Mozambique, Zambia and Zimbabwe, which is due by 21 December 2025.
The applicant
The anti-dumping application is lodged by SACU Industry Tile Manufacturers (the Applicant), which are Ceramic Industries (Pty) Ltd (Ceramic Industries) and Rayal Industrial (Pty) Ltd t/a Sinotile (Rayal), the major manufacturer of Ceramic Tiles in the Southern African Customs Union (SACU). Ceramic Industries and Rayal, which, according to Information at ITAC’s disposal, together constitute more than 80% of the domestic production of the subject product in SACU.
The subject product
The imported product allegedly being dumped is ceramic and porcelain wall and floor tiles, excluding finishing ceramics, mosaic cubes and the like. For the purposes of this investigation, the product types described above are treated as a single subject under tariff heading 69.07. However, a potential tariff loophole was identified under tariff subheadings 6904.90 and 6907.40, which may be leveraged to facilitate imports from the countries concerned.
The allegation of dumping
The dumping allegation is based on comparing normal values with export prices. The normal value for Mozambique was determined based on the price list of the subject product obtained from Safira Mozambique Ceramic Lda, a manufacturer. The normal value for Zambia was determined based on the sales invoice for the subject product obtained from Keda Zambia Ceramic Company (Keda), a manufacturer. The normal value for Zimbabwe was determined based on the sale invoice of the subject product obtained from Sunny Yi Feng Tiles (Zimbabwe) Pvt Ltd, a manufacturer. The normal value of the subject product for India was determined based on the quotation from Johnson Designers’ choice, a manufacturer in India.
The export prices were determined based on official import statistics obtained from the South African Revenue Service (SARS).
On this basis, ITAC found that there was prima facie proof of dumping.
The allegation of material injury
The applicant submitted evidence to show that there is price suppression and price depression. The applicant’s information indicated a decline in sales and production volumes, negative net cash flow, negative return on investment, negative effects on capacity utilisation and declines in profits, employment, productivity, increased inventory and salaries & wages.
Cumulative assessment:
Four countries are involved in this investigation. The information shows that the imported products from India, Mozambique, Zambia, and Zimbabwe satisfy the criteria to be cumulatively assessed as the margins of dumping for each country are more than 2%, the volume of imports from each country is above negligible levels, and the imported products compete with each other and also compete with the SACU-like product.
On this basis, ITAC decided to cumulatively assess the effect and/or impact of the alleged dumped imports on the issue of material injury to the SACU industry.
On this basis, ITAC found that there was prima facie proof of material injury.
The allegation of threat of material injury
The applicant submitted information indicating that there is limited literature on disposable capacity of the exporters in India, Mozambique, Zambia, and Zimbabwe significant increase of allegedly dumped imports into the SACU market which indicates the likelihood of substantial increases in importation and that the subject product is entering the SACU market which will have a depressing and suppressing effect on SACU prices and are likely to increase demand for further imports.
On this basis, ITAC found prima facie proof of a threat of material injury.
Causal link
On this basis, ITAC found prima facie evidence of material injury to the SACU industry and a causal link between the alleged dumped imports and that injury.
Period of investigation
The period of investigation for the purpose of determining the dumping margin is from 01 May 2024 to 30 April 2025. The period of investigation for purposes of determining the material injury is from 01 May 2022 to 30 April 2025.
Legal procedural framework
Having decided that there is sufficient evidence and a prima facie case to justify the initiation of an investigation, ITAC has begun an investigation in terms of Section 16 of the ITA Act, 2002 (the ITA Act). ITAC will conduct its investigation in accordance with the relevant sections of the ITA Act and the anti-dumping regulations of the International Trade Administration Commission (ADR).
Both the ITA Act and the ADR are available on ITAC’s website (www.itac.org.za) or from the Trade Remedies section, on request.