FILLING & PACKING MATERIAL. MFG. CO. (FIPCO) announces the decision of the General Authority of Foreign Trade (GAFT) to imposing final anti-dumping duties on imports of PVC-coated fabrics from China and South Korea, claimed by the subsidiary (FPC).
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Announcement Detail | Further to what was previously published on Tadawul website dated 19/05l1445H corresponding to 03/12/2023G related to GAFT decision to Initiation of Anti-Dumping Investigation claimed by the subsidiary (FPC), Filling & Packing Material Mfg. Co. (FIPCO) is pleased to announce the decision of the General Authority of Foreign Trade (GAFT) No. (2) dated 11/06/1446H corresponding to 12/12/2024G and published in the official newspaper (Umm Al-Qura) on 15/06/1446H corresponding to 16/12/2024G to imposing final anti-dumping duties on the imports of PVC coated fabrics from China and South Korea for five years starting from Dec. 17, 2024. The rationale for the aforementioned decision included the findings of the Trade Remedies Deputyship (TRD) at (GAFT) that there was a significant increase in the volume of dumped imports in absolute terms and relative to local production and that these imports had negative price impacts on the locally manufactured product. It also concluded that these imports had negative effects on the economic factors and indicators of the local industry during the investigation period were as follows: – Price difference between the similar product and the product under investigation. – Effects for local price capping. – Decrease in productivity. – Decrease in local sales. – Decrease in local market share. – Limited employment and inability to job creation. – Higher losses. – Declined ROI. – Negative cash flow. – Inability to capital increment. – Lack of growth. – Identified presence of dumping margins. It’s also identified the causative connection between the dumped imports and the harm to the local Industry. It is expected that imposing of anti-dumping duties will contribute to creating a fair competitive environment in line with international trade regulations, thereby improving the company’s local market share, however the financial impact is too difficult to de determined recently due to market conditions, and might be defined later after studying all market variables according to the consequences of the decision and its implementations. FIPCO will announce any relevant developments when applicable and based on materiality and significance on due course. This decision comes into action as a result for the company’s efforts exerted more than two years, as the company formed an internal project teamwork to reduce costs, in order to conduct Search, trace, and collect evidence and proofs, answer the question and provide documents requested by (GAFT) and arrange to reply for the reports and memos conducted by the dumping companies and their attorneys. FIPCO extends its sincere thanks, appreciation and gratitude to the wise government for its great support to the industrial sector, as well as the great role played by the Ministry of Industry and Mineral Resources, the Ministry of Commerce, as well as the General Authority for Foreign Trade, which played its role in investigating and verifying the accuracy of the provided information. |