On 07 March 2025, the International Trade Administration Commission of South Africa (ITAC) announced the initiation of an investigation into the alleged circumvention of the anti-dumping duties on windscreens for vehicles classifiable under tariff subheading 7007.21.20, to be used in the Southern African Customs Union (SACU) market as replacement glass in the aftermarket through country hopping from the People’s Republic of China (China) to Malaysia. Comment is due by 14 April 2025.
ITAC had received an application alleging circumvention through country hopping from China to Malaysia of windscreens for vehicles. Regulation 60.8 of the Anti-Dumping Regulation (ADR) states that “Country hopping shall be deemed to take place if imports, following the imposition of anti-dumping duties or provisional payment or the initiation of an anti-dumping investigation, switch to a supplier related to the supplier against which an anti-dumping investigation has been or is being conducted and that is based in another country or customs territory.”
The Applicant
The Application was lodged by Shatterprufe, a division of PG Group (Proprietary) Limited (PG), a major producer of the subject product in SACU.
The Product
The product allegedly being circumvented is laminated safety glass suitable for incorporation in vehicles, generally referred to as windscreens for vehicles, to be used in the SACU market as replacement glass in the aftermarket (ARG).
The Allegation of Circumvention (Country Hopping)
PG alleged that subsequent to the imposition of the provisional payments and definitive anti-dumping duties on imports of windscreens for vehicles to be used in the SACU market as replacement glass in the aftermarket originating in or imported from China, Chinese exporters have shifted sourcing of the subject products from China to some of their related companies in Malaysia.
Further to that, analysis of the change in the trade pattern of the import data from China and Malaysia pre- and post-imposition of provisional payments and final duties on windscreens for vehicles from China indicates the possibility of country hopping from China to Malaysia.
On this basis, the Commission found that there was prima facie evidence to indicate that country hopping, in terms of ADR 60.8, was taking place.
The Allegation of Dumping
The allegation of dumping is based on the comparison between the normal values previously established in the original investigation in accordance with ADR 62.3, and the export price derived from the import statistics obtained from the South African Revenue Service (SARS). On this basis, ITAC found that there was prima facie evidence of dumping, and the dumping margin was determined to be 44.34%.
The Allegation of Material Injury
PG alleged and submitted sufficient evidence from the original investigation, that the SACU industry was experiencing material injury and a threat of material injury with regard to the subject product. On this basis ITAC found that there was prima facie proof that material injury, or threat of material injury, and casual link in the original investigation that was considered for purposes of PG in line with ADR62.2.
Period of Investigation
The investigation period for dumping is from 01 January 2024 to 31 October 2024.