07 June 2025

One Vietnamese company was found to have evaded anti-dumping duties and was subject to a tariff of 8.78%. The remaining Vietnamese companies, due to insufficient cooperation with the investigating authorities, were assigned the country-wide duty of 41.47% previously determined in the original investigation against China.

According to Vietnam's Trade Remedies Authority (Ministry of Industry and Trade), on May 30, 2025, South Africa’s International Trade Administration Commission (ITAC) published its preliminary determination in the investigation into the alleged circumvention of anti-dumping duties on passenger car, bus, and truck tires originating in or imported from Vietnam.

The case was initiated on September 20, 2024, following a petition by the South African Tyre Manufacturers Conference. The investigation covers products under HS codes: 4011.10.01, 4011.10.03, 4011.10.05, 4011.10.07, 4011.10.09, 4011.20.16, 4011.20.18, and 4011.20.26.

The anti-dumping investigation period spans from November 1, 2022, to May 31, 2024, while the anti-circumvention investigation period covers August 1, 2022, to July 31, 2024.

ITAC reported that six Vietnamese companies initially responded to its questionnaires, but only three submitted additional information upon request. Two of these fully cooperating companies underwent on-site verifications in February 2025.

ITAC concluded that tire imports from Vietnam negatively impacted the SACU (Southern African Customs Union) region’s domestic tire industry, which includes South Africa, Botswana, Lesotho, Eswatini, and Namibia. The agency observed a notable shift in trade patterns: tire imports from China to SACU declined between fiscal years 2021/22 and 2023/24, while imports from Vietnam surged during the same period.

From August 1, 2023, to July 31, 2024, Vietnamese tire imports accounted for approximately 6% of SACU's total tire imports, ranking second behind Thailand (13.89%). This increase was deemed substantial enough to undermine the effectiveness of the anti-dumping duties imposed on China.

ITAC also identified dumping behavior by Vietnamese exporters, with a calculated dumping margin of 78.90%. Based on this and other findings, the commission preliminarily concluded that Vietnamese exports were circumventing the anti-dumping measures applied to Chinese tires.

Among the three fully cooperating Vietnamese companies, ITAC concluded that two did not engage in circumvention, as they were neither involved in the original China investigation nor exported the products in question to SACU during the review period. One company, however, was found to have circumvented the duties and was hit with a provisional tariff of 8.78%.

The remaining Vietnamese firms, which did not fully cooperate with the investigation, were assigned the same country-wide duty of 41.47% applied to Chinese exporters in the original case.

In light of the injury suffered by South African manufacturers, ITAC imposed a provisional anti-circumvention duty on Vietnamese exporters of the investigated products. The duty will be in effect for six months while the final determination is under review. A final decision is expected by September 2025 and will be submitted to the South African Minister of Trade and Industry for potential implementation of definitive anti-circumvention measures.

In response, Vietnam's Trade Remedies Authority urges the Vietnam Rubber Association to promptly notify relevant tire manufacturers and exporters of the preliminary conclusion, engage in discussions on next steps, and propose government support if necessary.

Concerned businesses are advised to carefully review the preliminary determination, submit written comments to ITAC if needed, closely monitor the investigation’s progress, and ensure full cooperation. Non-cooperation could result in adverse assumptions or higher anti-circumvention duties.

Exporters should also consider requesting a future review of the duty if they wish to continue exporting to SACU, and proactively diversify export markets and product lines to mitigate potential risks if final duties are imposed.

Source: VnEconomy