Definitive anti-dumping duties are now being implemented by the South African Revenue Service (SARS) on replacement vehicle windscreens being imported from China and Malaysia following investigations that have confirmed tariff- and country-hopping to circumvent the original duties imposed in 2022.

The duties being imposed on windscreens originating in the two countries range from 12.92% to 129.12%, depending on the exporting entity.

The International Trade Administration Commission of South Africa (Itac) initiated investigations last year after Shatterprufe, a division of PG Group, made applications in which it alleged that the anti-dumping duties imposed on Chinese imports earlier in the decade were being circumvented by means of both tariff hopping and country hopping.

Shatterprufe, one of four main manufacturers in the Southern African Customs Union (Sacu), alleged that tariff hopping involved a shift in the classification of Chinese windscreen imports from tariff subheading 7007.21.20, under which the duty applied, to tariff subheading 8708.22.10, under which the duty did not apply.

In addition, it was alleged that the anti-dumping duties were also being circumvented through country hopping from China to Malaysia. Country hopping involves the switching of the source of the imports to a related supplier in another country or customs territory to which no anti-dumping duty applies.

Itac initiated its investigation in March last year, and following a preliminary determination, SARS imposed preliminary duties in October, ahead of a final determination.

Final determinations in relation to tariff- and country-hopping were subsequently confirmed by Itac in a September 8 statement.

Itac confirmed that it had recommended that Trade, Industry and Competition Minister Parks Tau impose anti-dumping duties on windscreen imports from China and Malaysia under both tariff subheadings, 7007.21.20 and 8708.22.10.

The commission indicated that the decision followed an extensive investigation during which it concluded that the Sacu industry was experiencing material injury and a threat of material injury as a result of the circumvention.

The definitive anti-dumping duties were implemented by SARS on September 4 in relation to the country-hopping finding and on September 7 in relation to tariff hopping.