On 31 January 2025, the International Trade Administration Commission of South Africa (ITAC) announced the initiation of a sunset review of the anti-dumping duties on clear float glass of 2.5mm or more but not exceeding 6mm, classifiable in tariff subheadings 7005.29.17, 7005.29.23, 7005.29.25, and 7005.29.35, originating in or imported from Saudi Arabia and United Arab Emirates (UAE), on which comment is due by 03 March 2025.
In accordance with the provisions of Regulation 53 of the ITAC Anti-Dumping Regulations and Article 11.3 of the World Trade Organisation Agreement (WTO) on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (GATT 1994), any definitive anti-dumping duty shall be terminated on a date not later than five years from its imposition, unless the authorities determine, in a review initiated before that date, on their own initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period of time prior to that date, that the expiry of the duties would likely lead to the continuation or recurrence of dumping and injury.
On 07 June 2024, ITAC notified interested parties through a Government Gazette Notice that unless a substantiated request is made indicating that the expiry of the anti-dumping duties against imports of clear float glass originating in or imported from Saudi Arabia and the UAE would likely lead to the continuation or recurrence of dumping and injury, the anti-dumping duties on clear float glass originating in or imported from Saudi Arabia and the UAE will expire on 06 February 2025.
The application was lodged by PFG Building Glass Pty Ltd, a division of PG Group (Pty) Ltd, being the only producer of the subject product in the Southern African Customs Union (SACU). Thus, the application can be regarded as “made by or on behalf” of the SACU Industry.
PG Group alleges that the expiry of the anti-dumping duties would likely lead to the recurrence of dumping and the recurrence of material injury. PG Group submitted sufficient evidence and established a prima facie case to enable ITAC to arrive at a reasonable conclusion that a sunset review investigation of the anti-dumping duties on clear float glass originating in or imported from Saudi Arabia and the UAE should be initiated.
The allegation of the likelihood of the recurrence of dumping is based on the comparison between the normal values and the export prices should the anti-dumping duties expire.
Saudi Arabia
In calculating the normal value for Saudi Arabia, the PG Group submitted the domestic selling price that was recorded in ITAC’s preliminary determination Report No.599 of the original investigation. The historical ex-factory selling prices ending February 2018 for 3mm, 4mm, 5mm, and 6mm were adjusted to account for inflation.
Economic and market factors were also considered to calculate normal values for the subject product.
ITAC normally uses official South African Revenue Service (SARS) statistics to calculate the export price. However, due to the existing anti-dumping duties imposed on the subject products from Saudi Arabia, the SARS import statistics indicated that there were no imports of the subject products in the 3 mm, 4 mm, 5 mm and 6 mm categories for the years 2022, 2023, and 2024 investigation period. However, there was only one consignment of 6mm in February 2022.
To determine the export price, information on a subscription data service submitted by PG Group was utilised to gather pricing information on Free on Board (FOB) export prices for the subject product from Saudi Arabia to a third country for the 2024 period. In obtaining the export data to a third country, it was ensured that the selected country also has a subject product industry similar to that of South Africa. Therefore, import data from Saudi Arabia to the United States of America (USA) was used to calculate an export price.
An inland domestic freight cost adjustment of 5% was made to arrive at the ex-factory export price.
The dumping margins for Saudi Arabia were determined as follows: 3mm 7005.29.17 21.56%; 4mm 7005.29.23 26.93%; 5mm 7005.29.25 27.49%; and 6mm 7005.29.35 24.85%.
UAE
In calculating the normal value for the UAE, the PG Group submitted the domestic selling price that was recorded in ITAC’s preliminary determination Report No. 599 of the original investigation. The historical ex-factory selling prices ending February 2018 for 3mm, 4mm, 5mm, and 6mm were adjusted to account for inflation. Economic and market factors were also considered to calculate normal values for the subject product.
In calculating the export price, ITAC normally uses official SARS statistics. However, due to the existing anti-dumping duties imposed on the subject products from the UAE, the SARS import statistics indicated that there were no imports of the subject products in the 3 mm, 4 mm, 5 mm and 6 mm categories for the years 2022, 2023, and 2024 investigation period.
To determine the export price, information on a subscription data service submitted by the PG Group was utilised to gather pricing information on FOB export prices for the subject product from the UAE to a third country for the 2024 period.
In obtaining the export data to a third country, it was ensured that the selected country also has a subject product industry similar to that of South Africa. Import data from the UAE to the USA was used to calculate an export price.
An inland domestic freight cost adjustment of 5% was made to arrive at the ex-factory export price.
The dumping margins for the UAE were determined as follows: 3mm 7005.29.17 39.38%; 4mm 7005.29.23 38.90%; 5mm 7005.29.25 38.52%; and 6mm 7005.29.35 38.59%.
On this basis, ITAC found prima facie proof of the likelihood of recurrence of dumping.
Material Injury
PG Group alleged and submitted sufficient evidence to show that the expiry of the anti-dumping duties on the subject products originating in or imported from Saudi Arabia and the UAE would likely lead to the recurrence of material injury to the SACU industry.
On this basis, ITAC found prima facie proof of the likelihood of the recurrence of material injury if the duties expire.
Period of Investigation
The investigation period for determination of the likelihood of the recurrence of dumping will be 01 July 2023 to 30 June 2024 in a forward-looking analysis, as the application is brought on the recurrence of dumping. The investigation period for determination of the likelihood of the recurrence of material injury is from 01 July 2021 to 30 June 2024, and estimates for 01 July 2024 to 30 June 2025 in the event the anti-dumping duties expire.