Issuance of a decision to impose anti-dumping duties on a textile product

The Packaging Materials Manufacturing Company (FIPCO) announced the issuance of a decision by the General Authority for Foreign Trade to impose final anti-dumping duties on imports of textile products or fabrics covered with polyvinyl chloride (PVC) originating from or exported from China and Korea.
The company had announced on the Saudi Tadawul website, on December 3, 2023, the issuance of the decision of the General Authority for Foreign Trade to accept and begin investigation procedures into the complaint submitted by the subsidiary (FBC Industry Company) to combat anti-dumping.
Dumping duties are imposed for a period of 5 calendar years starting from today.
The rationale for the decision included the findings of the Trade Processors Agency at the General Authority for Foreign Trade that there was a significant increase in the volume of dumped imports in absolute terms and relative to local production.
The reasons included that these imports had negative price impacts on the locally manufactured product, and it also concluded that these imports had a negative impact on the economic factors and indicators of the local industry during the investigation period, which were as follows:
– There is a price difference between the similar product and the product subject to investigation.
– There are effects of suppression of local prices.
– Inability to exploit the available production capacity.
– Low productivity.
– Decrease in local sales volume.
– Decrease in the market share of local sales.
– Employment stability and inability to increase it.
– Increase in losses.
– Decrease in return on investment.
– Achieving negative cash flows.
– Inability to increase capital.
– Inability to grow.
– There is an effect on the size of the dumping margin.
The results of the investigations indicated that there is a causal relationship between dumped imports and the damage to the local industry.
It is expected that the decision to impose anti-dumping duties will contribute, God willing, to providing a fair competitive environment in accordance with international trade regulations, which will contribute to raising the company’s market share in the local market, but it is difficult to determine the financial impact of this decision at the present time, and it will be determined later. After studying all market variables in accordance with the consequences of the decision and its implementation mechanisms, FIPCO will announce any relevant developments when applicable and according to their materiality and relative importance.