By Nokwanda Dlangamandla
14:09:2022

The DTIC published anti-dumping protection levies on the importation of tyres into South Africa on Monday, regarding section 57A of the Customs and Excise Act, 1964. This provisional payment concerning anti-dumping duty is imposed up to and including 8 March 2023.

A schedule was published with this announcement. The anti-dumping duty is levied at 38,8% on the imported price of the tyres.

Together with other transport-related organisations and associations, the Road Freight Association (RFA) had earlier engaged with the DTIC – and bodies involved in the retail and wholesale tyre sectors – to gain clarity on why these anti-dumping duties would be implemented, given the inability of the local manufacturing industry to meet local consumption demands, as well as to ascertain how the local manufacturing industry would be adversely affected.

Tyres are imported from various markets because South Africa cannot meet local consumption due to capacity

Gavin Kelly, who spoke with Radio Islam International, said the anti-dumping protection levies were designed to protect the local businesses. It is implemented to prevent cheaper products from coming into the country, making local businesses no longer sustainable and forcing things to close down.

He added that tires are sourced from various parts of the world, but the levy was put on china specifically because most of the imported tires are from China.

“A Levy has been added to tyres imported from China with a narrative that it will protect the local businesses from cheaper imports. In other words, the local industry cannot fight or compare the price of tires as they are imported from China,” he said.

He said that this is because South Africa cannot meet the tyre needs of the country.

However, he mentioned that by introducing these levies, they are trying to protect consumers who import from countries like the US, Japan, Germany, etc.

This comes after the price of tires went up in July by 5.9%, which is the annual increase in inflation.

He said people are looking at paying a 40% increase for tyres which will affect the transport cost.

“Anything that moves by road will be affected, the transport cost will be affected depending on the type of trip and scenario between 9% and 11 %., and so that is going to touch your and my pocket, said Kelly

Several Associations have raised concerns and called the government to reconsider.

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