On 25 October 2024, the International Trade Administration Commission of South Africa (ITAC) announced the initiation of an investigation into the alleged dumping of fully automatic top load machines of a dry linen capacity exceeding 10 kg but less than 17 kg, classifiable in tariff subheading 8450.20.20, originating in or imported from the People’s Republic Of China (China) and the Kingdom of Thailand (Thailand), on which comment is due by 25 November 2024.
The application was lodged by Defy Appliances (Proprietary) Limited (Defy), who alleged that the dumped product was causing material injury and that a threat of material injury existed. Defy submitted sufficient evidence and established a prima facie case to enable ITAC to arrive at a reasonable conclusion that an investigation should be initiated based on dumping, material injury, threat of material injury and causality.
Defy’s dumping allegation is based on comparing the normal value in China and Thailand and the export prices from China and Thailand.
China: The normal value for China was determined based on the price quotations of 12kg and 15kg of the top-load washing machines. To calculate the export price for China, the official SARS statistics for the period 1 April 2023 to March 2024 were used. An adjustment of 5% for inland freight was calculated to arrive at the ex-factory export price. The dumping margin for China was determined to be 21.48%.
Thailand: The normal value for Thailand was determined based on the price quotations for the top-load washing machines, which were 12 kg, 14 kg, and 16 kg. To calculate Thailand's export price, the official SARS statistics for 01 April 2023 to March 2024 were used. An adjustment of 5% for inland freight was calculated to arrive at the ex-factory export price. The dumping margin for Thailand was determined to be 67.11%.
On this basis, ITAC found prima facie proof of dumping the subject product originating in or imported from China and Thailand.
Defy alleged that a threat of material injury existed and submitted evidence with regard to the freely disposable capacity of the exporters, a significant increase of the alleged dumped imports, the state of the economy in China and Thailand, and prices of imports which will have a significant undercutting or suppressing effect on domestic prices.
On this basis, ITAC found prima facie proof of material injury, a threat of material injury and a causal link.