Tyre importers head to court
COLLABORATION: HOPING TO GET DUTIES REVERSED
Legislation relied on by Itac to impose provisional duties ‘has not been promulgated yet’.
The Tyre Importers Association of South Africa (Tiasa) has commenced legal steps to reverse the decision taken by the International Trade Administration Commission (Itac) to impose provisional anti-dumping duties on tyres imported from China.
Tiasa chair Charl de Villiers said the association’s attorneys had served notice on the South African Revenue Service (Sars), as required in terms of Section 96 of the Customs and Excise Act, that Tiasa will be commencing with legal proceedings against it.
He said Tiasa will be lodging a high court application to reverse the decision on the basis that the legislation Itac relied on to impose these provisional duties has not been promulgated.
“Section 30 of the International Trade Administration Act 71 of 2002 has not come into effect yet. It hasn’t been promulgated by government. It hasn’t been through parliament.
“They are relying on that piece of legislation, and we are saying you can’t rely on a piece of legislation that is not there,” he said.
The provisional duty will remain in place until 8 March and lapse if Itac has not issued a final determination by then.
De Villiers said the Sars litigation unit has acknowledged receipt of the notice. Sars has not yet responded to a Moneyweb request for confirmation of this.
Itac communications manager Thalukanyo Nangammbi said this matter is sub-judice and it would therefore be inappropriate for Itac to comment.
De Villiers said Tiasa’s attorneys will now be preparing the court application to reverse the provisional anti-dumping duties, which will be served on Finance Minister Enoch Godongwana; Trade, Industry and Competition Minister Ebrahim Patel; Sars Commissioner Edward Kieswetter; Itac and the SA Tyre Manufacturing Conference (SATMC). SATMC’s members are the four domestic tyre producers – Bridgestone, Continental, Goodyear and Sumitomo.
De Villiers said Tiasa will not be bringing the application on an urgent basis, as its attorneys have advised it would be thrown out on urgency because “the house is not burning down”.
“Yes, the consumer will end up paying more but this is only for a provisional period of six months until the final [Itac] determination has been made, so we did not bring it as an urgent application.”
He added Tiasa wants a previous high court application to compel Itac and the SATMC to disclose critical information about the latter’s application that is being withheld.
“We will be writing to the deputy judge president requesting that, in the interests of the public, we actually move the hearing to have the two matters heard together.”
De Villiers said Tiasa will request to make oral submissions to Itac and has also given notice to Itac of its intention to oppose SATMC’s application.
SATMC applied to Itac for protection because tyres were allegedly being imported into South Africa at “unfairly low prices”.
Tiasa said government’s rationale for the duties is ostensibly to help protect local manufacturers but they have to import 80% of the over 3 000 different models of tyre ranges they sell.
The Automobile Association (AA) has been drawn into the fray, claiming these provisional duties are a major blow to road safety and demanding they be reversed immediately.
It expects embattled consumers to balk at the higher prices and therefore use tyres which are in poor condition because they cannot afford to replace them.