The South African government has announced new anti-dumping duties of 38.8% on imported tyres from China.
Currently, the duties on eight sizes of tyres, for cars as well as large vehicles like buses and lorries are imposed until March next year. Almost half of the tyres in South Africa are imported, mostly from China.
Earlier the year, the SA Tyre Manufacturers Conference (SATMC) which represents Continental, Bridgestone, Goodyear and Sumitomo applied to the International Trade Administration Commission of South Africa (ITAC) for anti-dumping duties on Chinese imports.
They contended that Chinese tyres are imported unfairly into South Africa at “predatory”, unsustainable rates. This caused “material injury to the domestic manufacturing industry”, which employs more than 6 000 people.
On Friday, the Road Freight Association (RFA) warned that the new duties could push up the price of transporting goods by at least 8%.
The new duties follow the annual increase in the price of tyres, of 5.9%, in July.
“By adding the anti-dumping levy, tyre prices will now increase by a whopping 44.7% in a single year. This is untenable for any transport operation whether moving freight or passengers and will see increases inevitably being passed on to consumers,” said Gavin Kelly, CEO of the RFA.
The National Taxi Alliance previously warned that the new tyre duties could mean a 30% increase in passenger tickets.
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“The country cannot have a situation where tyres become so expensive that fleet owners and private individuals begin to push tyres to the extreme limits of wear and endurance,” added Kelly.
He expressed concern that the local industry will be able to supply enough tyres for the market, and implored the Department of Trade, Industry and Competition (DTiC) to use the levies collected on imported tyres to fund the development of the local tyre industry.
Source: News24