http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.10
R/$ = 10.50Change: 0.05
Au 1294.90 $/ozChange: -0.67
Pt 1407.50 $/ozChange: -21.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 12, 2002

New dumping regulations by 2003

Back
Deloitte & Touche Investment Solutions|Europe|China|India|Japan|South Africa|South Korea|United States|Board On Tariffs And Trade|BTT's InternationalnTrade Administration|World Trade Organisation|Francois Dubbelman|Gustav Brink|Nomonde Maimela
deloitte-touche-investment-solutions|europe|china|india|japan|south-africa|south-korea|united-states|board-on-tariffs-and-trade|btts-internationalntrade-administration|world-trade-organisation|francois-dubbelman|gustav-brink|nomonde-maimela
© Reuse this In a move which is set to alter South Africa's trading environment drastically, the Board on Tariffs and Trade (BTT) is drafting the country's long awaited antidumping regulations, expected to come into effect during the first half of next year.

The board's trade remedies policy director, Gustav Brink, is spearheading the drafting of the regulations.

The BTT, a statutory body whose staff is seconded by the Department of Trade and Industry (DTI), is itself being reconstituted into a commission for international trade administration (Cita), in line with the DTI's drive to become more accessible, customer-focused and competitive.

The commission will be responsible for managing South Africa's international trading environment, including trade remedies, tariff investigations and import and export control.

A Bill paving the way for the Cita is due to be presented to Parliament soon. "The Bill will go through the normal Parliamentary process before it is promulgated, and is scheduled to take effect in 2003," BTT CEO Nomonde Maimela tells Engineering News.

She says the envisaged Cita Act will be "more encompassing" than the existing BTT Act and will state the trade remedies the board can apply as well as how it can apply them.

Where a foreign supplier has been proved to be engaging in unfair trade practices, the BTT may apply antidumping or countervailing duties, in addition to customs duties, to protect not only South African industries, but also those in other Southern African Customs Union (SACU) member countries.

Dumping occurs when the export price of a product is lower than the comparable price payable in the ordinary course of trade in the exporting country or if the product is sold for less than its production cost. While the World Trade Organisation (WTO) does not prohibit dumping, it allows member countries to take measures which prevent injury to local manufacturers.

When a local manufacturer or industry feels that its profitability or viability is threatened because of dumping or subsidised exports, it can apply to the BTT for protection against unfair trade.

The board's trade-remedies directorate will then invite all interested parties, including foreign government representatives, importers and exporters, to supply information in rebuttal of the allegations by the domestic industry.

The directorate will then verify the information submitted by all parties before making submissions to the BTT.

"The process consists of a merit assessment and preliminary and final determinations, and provisional payments in respect of antidumping or countervailing (antisubsidy) allegations are regularly imposed to offset further material injury during the investigations," explains Maimela.

Usually, investigations have to be finalised within 12 months, but they can continue for up to 18 months in complex cases.

Francois Dubbelman, a manager and antidumping expert at Deloitte & Touche Investment Solutions, points out that, currently, investigations average 15 months.

However, the timeframes are expected to improve further following the appointment of additional staff at the BTT's International Trade Administration earlier this year.

South Africa is one of many countries which has actively applied antidumping and countervailing duties, and the 109 products imported into South Africa which were subjected to antidumping duties in June 2001 represent only 9,8% of the total number of affected imports worldwide.

Most of the products imported into this country which are subjected to antidumping or countervailing duties emanate from China, India and Europe, but antidumping duties have also been imposed against countries such as South Korea, Japan and the US.

Strictly speaking, South Africa does not have antidumping regulations but follows the WTO's antidumping agreements. Maimela says that the antidumping regulations were long overdue and that they will "bring about more clarity and certainty in the market.

"They will, for example, spell out exactly how the BTT is to deal with the information made available to it and the process to follow, thus ensuring consistency.

"By removing the existing grey areas, the new regulations will provide guidance to the board and ensure that there is clarity among South African companies which may be affected by dumping".

Currently, the conclusion of antidumping investigations may be delayed when an affected party suddenly makes information available to the trade remedies directorate at a late stage, but the regulations being drafted will put a stop to this.

"We hope that the regulations will reduce the time it takes to conclude investigations considerably," comments Maimela.

She tells Engineering News that the new antidumping regulations will, to some extent, deal with countervailing investigations as well, although another set of regulations dealing specifically with this issue will be developed at a later stage. After that, safeguard regulations, aimed at protecting local industries from sudden surges in imports that cause serious injury to the domestic industry, will also be drafted.

New antidumping and countervailing regulations have been on the drawing board since 1992 and, at the height of antidumping investigations in 1996, a person was specifically appointed to spearhead the restructuring of the mechanism of dealing with unfair trade by foreign companies in accordance with WTO requirements. The then South African representative at the WTO was also brought in to head the BTT's antidumping unit, and more staff were appointed and training programmes initiated.

Observers have expressed concern at the possibility of the new antidumping regulations running counter to rulings made by the BTT in the past, which might open a floodgate of appeals by affected companies.

But Dubbelman says under South Africa's administrative law no authority can review its own decisions unless there are changed circumstances. The impending regulations, coupled with improved capacity at the BTT, mean that the days of protracted investigations may be numbered.

This time last year, the trade remedies staff complement was 12 people, rising to 17 in November and 22 currently. Brink is one of the newcomers, along with two other directors.

It is expected that more people will be employed when the BTT is transformed into the Cita.

Since investigating unfair trade practices is highly complex and requires long periods of training, Maimela says the benefits of employing more people will not become evident overnight.

Although she says 90% of the world's trade may involve dumping and that the BTT is not against dumping as such, Maimela says the WTO only condemns dumping that causes material injury to the domestic industry. In fact, where dumping takes place and there is no domestic industry, the dumping may result in lower prices, which benefits consumers.

She notes that firms in the US and the European Union (EU) are so big that only a small proportion of their production would cause serious problems if it were sold in South Africa at cheaper prices than those charged by local manufacturers.

Given their long exposure to competition, EU and US manufacturers are sometimes more efficient than their South African counterparts, many of which were set up to supply products that could not be sourced internationally before 1994 as a result of sanctions.

The relatively small size of South African industries is also a big hindrance when it comes to investigating whether or not foreign suppliers are dumping their products in South Africa.

A domestic company may regard $1 million, which represents a significant part of its turnover and which might be needed to send people to investigate whether overseas com-panies are dumping their products in South Africa, as being too big.

"Determining whether or not a foreign company is dumping its products here is complicated and costly," explains Maimela.

She says that, since September last year, very few new antidumping complaints have been lodged with the BTT, probably as a result of the dramatic weakening of the rand.

Just before the local currency went into free-fall, a US dollar was valued at about R8, meaning that an imported product worth $100 would sell for about R800 in South Africa.

But when the rand depreciated to the extent that a greenback would buy R13, the local price of the imported product shot to R1 300. The upshot was that imported goods became more expensive than their locally-manufactured equivalents, thus eliminating the need by South African manufacturers to seek protection against dumped imports.

Dubbelman predicts that the next few months will see an increase in new applications for antidumping and countervailing investigations, as the protection accorded by the weak rand has been falling away since January, when the local currency started to recover.

"People who may have started preparing applications for antidumping and countervailing investigations obviously shelved them but, with the rand strengthening, the applications may be revived," he says.

The lull in antidumping investigations provided the BTT with an opportunity to train staff and to reformulate policy, says Dubbelman. With higher staffing levels, better-trained personnel and clearer regulations, there is little doubt that South Africa's trading environment will never be the same.
Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Trade News
The enrolment of students into technical and vocational education and training (TVET) colleges has grown by 131% since 2010 but there are still challenges that must be addressed through industry and college partnerships.
While trade activity remained in positive territory during March it was still restrained, found the South African Chamber of Commerce and Industry’s (Sacci’s) Trade Conditions Survey, released on Tuesday. Sacci’s trade activity index (TAI) for March, at a level...
World trade is expected to grow by 4.7% in 2014 and at a slightly faster rate of 5.3% in 2015, World Trade Organisation (WTO) economists said on Monday, upgrading their growth prediction for the year from a preliminary forecast of 4.5% trade growth for the 12 months....
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks