On 07 March 2025, the International Trade Administration Commission of South Africa (ITAC) announced the initiation of an investigation into the alleged circumvention of the anti-dumping duties on windscreens for vehicles classifiable under tariff subheading 7007.21.20, to be used in the Southern African Customs Union (SACU) market as replacement glass in the aftermarket originating in or imported from the People’s Republic of China (China) by importing the windscreens under tariff subheading 8708.22.10. Comment is due by 14 April 2025.
The International Trade Administration Commission of South Africa (ITAC) received an application alleging that circumvention of the anti-dumping duties on windscreens for vehicles classifiable under tariff subheadings 7007.21.20, to be used in the SACU market as replacement glass in the aftermarket originating in or imported from China through improper declaration of imports under an alternative tariff subheading that is not subjected to anti-dumping duties as a result of minor modification is taking place.
Regulation 60.2 of the Anti-Dumping Regulation (ADR) provides a list of types of circumvention that should be treated separately. According to regulation 60.2(a) (iii), the improper declaration of the nature or classification of the product and 60.2(b) minor modifications to the product subject to anti-dumping duty falls within such a type of circumvention.
The Applicant
The Application was lodged by Shatterprufe, a division of PG Group (Proprietary) Limited (PG), a major producer of the subject product in SACU.
The Product
The product allegedly being circumvented is laminated safety glass suitable for incorporation in vehicles generally referred to as windscreens for vehicles, to be used in the SACU market as replacement glass in the aftermarket (ARG). Based on the information submitted by the Applicant, the Commission decided that the SACU products and the imported products were “like products” for purposes of comparison in terms of the ADR.
The Allegation of Circumvention (Improper Declaration as a Result of Minor Modification)
PG alleged that, subsequent to the imposition of the provisional payments and definitive anti-dumping duties on imports of windscreens for vehicles to be used in the SACU market as replacement glass in the aftermarket originating in or imported from China, the incentive to import windscreens from China under tariff subheading 8708.22 had increased. This is being done as a way to circumvent the anti-dumping duties imposed under tariff subheading 7007.21.20.
PG also alleged that in order to circumvent the anti-dumping duties on windscreens that should be imported under tariff subheading 7007.21.20, minor modifications could be made to the windscreens by sticking on connecting wires or connectors without any functional role for electrical/electronic devices at a minimum cost, which wires or connectors can then be removed and thrown away before fitment.
Thus, a false pretence can be created of the windscreen being ‘electronic’ and classifiable under tariff subheading 8708.22.10. [This is a SACU-specific commodity code.]
PG stated that tariff subheading 8708.22 was a new tariff subheading, which came into effect on 01 January 2022 to align with the World Customs Organization (WCO) Harmonised System (HS) 2022 adjustments, to make a distinction between motor vehicle windows and other parts and accessories of motor vehicles that were previously classified under tariff subheading 8708.29. These windows can be front, rear or other windows that are framed and/or incorporating heating devices or other electrical or electronic devices which clearly differ from tariff subheading 7007.21.20 which provides for “Windscreens for vehicles” and excludes “accessories”.
PG further stated that on 16 August 2024, tariff subheading 8708.22.10 was created, and with the creation of tariff subheading 8708.22.10, an important milestone was reached as tariff subheading 8708.22 catered for automotive glass and not specifically identifying windscreens only, which gave it the character of a basket code and therefore tariff subheading 8708.22.10 was more specific.
ITAC decided to conduct an analysis of tariff subheading 8708.22, both prior to and following the separation.
Based on the above, analysis of the change in the trade pattern of the import data between 7007.21.20, 8708.22 and 8708.22.10 pre- and post-imposition of provisional payments and final duties on windscreens for vehicles from China indicates the possibility of improper declaration of imports under an alternative tariff subheading that is not subjected to anti-dumping duties as a result of minor modification in order to avoid paying duties.
On this basis, the ITAC found that there was prima facie evidence to indicate that circumvention through improper declaration of imports under an alternative tariff subheading that is not subjected to anti-dumping duties as a result of minor modification, in terms of ADR 60.2(a)(iii) and 60.2(b) was taking place.
The Allegation of Dumping
The allegation of dumping is based on the comparison between the normal values previously established in the original investigation in accordance with ADR 62.3, and the export price determined in the same original investigation. On this basis, ITAC found that there was prima facie evidence of dumping, and the dumping margin was determined to be 129.15%.
The Allegation of Material Injury
PG alleged, and submitted sufficient evidence from the original investigation, that the SACU industry is experiencing material injury and a threat of material injury with regard to the subject product. On this basis, ITAC found that there was prima facie proof that material injury, or threat of material injury, and causal link in the original investigation that was considered for purposes of this Application in line with ADR62.2.
Period of Investigation
The investigation period for dumping is from 01 January 2021 to December 2021.
