An application has been brought for a sunset review on both fresh and dried garlic from China. If successful, this will result in the anti-dumping duties being extended for another 5 years. It is also possible for the duties to actually be increased from their current levels of R10.37 per kg (in addition to the R3.25 per kg of normal duties on fresh garlic and 20% on dried garlic). Imports of garlic for 2014, were as follows:
| Fresh garlic | Dried garlic | |
|---|---|---|
| Total import value | R29.1m | R36.7m |
| Volume from China | 900 tons | 786 tons |
| Average price from China | R8.57 per kg | R22.86 per kg |
| Chinese market share of imports | 48% | 53% |
| Other supplying countries | Spain – 43% | Nigeria – 25% |
| Price of other countries | Spain – R23.28 per kg | Nigeria – R0.80 per kg |
In both cases China still supplies around 50% of the total imports into South Africa, so clearly the anti-dumping duty has had a muted effect on trade.
The importance of responding
If you are impacted by this application its extremely important to respond and even more importantly to ensure that your Chinese exporter responds completely. An anti-dumping case can almost never be won without a complete response, but on the other hand, a complete response from a Chinese exporter stands a very good chance of being successful. Interested parties have until 27 April 2015 to respond.