Introduction of Anti-Dumping Measures
The Moroccan government has enacted a five-year anti-dumping duty on PVC resin imported from Egypt, specifically targeting products classified under customs code 39.04.10.90.00. This decision follows a thorough investigation into the pricing and import trends of Egyptian PVC.
Duty Rates Established
The definitive anti-dumping duties have been set at 74.87% for the Egyptian Petrochemicals Company (EPC), the sole producer-exporter that participated in the investigation. For all other Egyptian exporters, the duty rate is significantly higher at 92.19%. These rates reflect the dumping margins determined by the Ministry of Industry and Trade's inquiry.
Findings of the Investigation
Initiated on November 27, 2024, the anti-dumping investigation assessed the trends in PVC imports, pricing levels, and the economic conditions of the domestic production sector. Authorities noted a marked increase in the volume of PVC imports from Egypt, which consistently undercut local market prices.
The investigation concluded that this influx of underpriced imports exerted sustained pressure on domestic prices, hindering local producers from adjusting their prices upward. This situation has led to a decline in several economic indicators, including market share, profitability, and return on investment.
Causal Link Established
The investigation established a clear causal relationship between the dumped imports and the harm experienced by local producers, justifying the implementation of these protective measures.
Transition from Provisional to Definitive Duties
Prior to the definitive duties, provisional anti-dumping measures were in place starting June 6, 2025, for a duration of four months. During this interim period, the relevant imports were subject to customs deposits.
With the definitive measures now in effect, the Customs and Indirect Tax Administration is responsible for collecting the final amounts deposited, along with the corresponding VAT.
Exemptions and Regulatory Compliance
It is important to note that an exemption applies to PVC produced through emulsion polymerization, provided that a valid invoice is presented from the relevant administrative authority.
Objective of the Anti-Dumping Duty
This decision reflects Morocco's commitment to utilizing trade defense instruments as outlined by national regulations and the rules of the World Trade Organization. The primary goal is to restore fair competition conditions in the PVC market, a crucial input for various industrial sectors, including construction, agriculture, and infrastructure.
