On 07 March 2025, the International Trade Administration Commission of South Africa (ITAC) announced the initiation of a Sunset Review of the anti-dumping duties on disodium carbonate (soda ash) originating in or imported from the United States of America (USA). Comment is due by 14 April 2025.
Regulations 53.1 and 53.2 of South Africa’s Anti-Dumping Regulations (ADR) state that “anti-dumping duties shall remain in place for a period not exceeding five years from the imposition or the last review thereof”, and “if a sunset review has been initiated prior to the lapse of an anti-dumping duty, such anti-dumping duty shall remain in force until the sunset review has been finalised.”
In the Government Gazette of 07 June 2024, ITAC notified interested parties that unless a substantiated request by or on behalf of the Southern African Customs Union (SACU) industry was made before 29 September 2024, indicating that the expiry of the ant-dumping duties on soda ash originating in or imported from the USA would likely result in the continuation or recurrence of dumping and injury, the anti-dumping duties on such imports would expire on 29 March 2025.
The Applicant
The Government of Botswana submitted an application on behalf of Botswana Ash (Pty) Ltd (the Applicant), supported by Sappi Southern Africa (Pty) Ltd., to the Minister of Trade, Industry and Competition (DTIC). The Government of Botswana requested the Minister to instruct ITAC, in terms of the ITAC Act, to consider this Application. An instruction was received from the Minister of the dtic to ITAC to consider the Application
The Application alleged that the expiry of the anti-dumping duty would likely lead to the continuation or recurrence of dumping and material injury to the SACU market, causing material injury to the SACU industry concerned. The Applicant 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 soda ash originating in or imported from the USA, be initiated.
The Product
The anti-dumping duties on soda ash, subject to the sunset review, are classifiable under tariff subheading 2836.20, originating in or imported from the USA.
The Allegation of Continuation or Recurrence of Dumping
The allegation of continuation or recurrence of dumping is based on the comparison between the normal value in the USA and the export price from the USA. The normal value is based on selling prices obtained from editions of “Global Soda Ash Monthly” publications, for the period 01 July 2023 to 30 June 2024. The export price was based on world average export prices of the subject product obtained from IHS Markit editions of “Global Soda Ash Monthly” publications for the period 01 July 2023 to 30 June 2024. The Applicant stated that import volumes of 19kg are not considered normal quantities, and therefore, in accordance with the Commission’s practice, where there are no imports of the subject product due to the effectiveness of the dumping duties, export prices be determined with exports from the USA to third countries. On this basis, the dumping margin was determined to be 2.89%.
On this basis, ITAC found that there was prima facie proof of the likelihood of a continuation of dumping.
The Allegation of Recurrence of Material Injury
The Applicant alleged and submitted prima facie proof that should the duties expire, it would experience price suppression, a decline in profit, decline in sales volumes and values, decline in profits, decline in output, loss of market share, decline in return on investment, decline in capacity utilisation, a decline in cash flow, increase in inventories, loss of employment and negative growth.
On this basis, ITAC found that there was prima facie proof of the likelihood of a recurrence of material injury.
Period of Investigation
The period of investigation for dumping is from 01 July 2023 to 30 June 2024. The period of investigation for material injury is from 01 July 2021 to 30 June 2024, and in the event that the duties expire, estimates for 01 July 2024 to 30 June 2025 were provided.
