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The International Trade Administration Commission of South Africa (ITAC) has issued a notice on the imposition of a provisional safeguard measure on imports of corrosion-resistant steel coil into the Southern African Customs Union (SACU).
Vietnam has been excluded from the application of the measure on the grounds that it qualifies as a developing country with an import share below 3%, and the combined import share of similarly situated countries does not exceed the threshold prescribed under WTO rules.
Key information of the case:
• Product under investigation: Corrosion-resistant steel coil, HS codes 7210.61.20, 7210.61.30, 7225.92.25, and 7225.92.35
• Initiation date: January 17, 2025 (following the termination and immediate re-initiation of the original case initiated on December 27, 2024)
• Investigation period: From May 2021 to April 2024
• Preliminary conclusion: ITAC determined that imports surged in a sharp, sudden, and significant manner during the investigation period, with an increase of 17.16% from 2022 to 2023. The majority of imports originated from China.
ITAC also preliminarily concluded that SACU’s domestic industry suffered serious injury, as evidenced by declines in indicators such as output, domestic sales, profitability, market share, capacity utilization, and employment.
Although other factors such as declining steel demand, slower infrastructure investment, and rising input and logistics costs were acknowledged, they were not deemed to be the primary causes of the injury.
Unusual factors contributing to the import surge:
• Excess steel production capacity and economic slowdown in China since 2021 have led to increased exports from China.
• Trade remedy measures in other countries redirected Chinese steel exports to lower-tariff markets such as South Africa.
Measure proposed:
ITAC has proposed a provisional safeguard duty of 52.34% for a period of 200 days, pending the final determination.
Vietnam’s exclusion from the measure:
Pursuant to WTO regulations, Vietnam qualifies as a developing country with an individual import share below 3%, and the total import share from all such countries remains below 9%. Therefore, Vietnam is excluded from the scope of the safeguard measure.
Previously, the Trade Remedies Authority of Vietnam submitted a letter to ITAC presenting Vietnam’s position and requesting the exclusion of Vietnamese products from the measure. On April 11, 2025, ITAC responded and confirmed that it would carefully consider Vietnam’s arguments during its decision-making process.
Recommendation:
This preliminary conclusion is a positive signal, allowing Vietnamese exporters to continue supplying corrosion-resistant steel coil to the SACU market.
Vietnamese companies and industry associations are advised to closely monitor further developments in the case until the final decision is issued.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnam Antidumping Law Firm specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
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