Starting April 1, the Moroccan Administration of Customs and Indirect Taxes (ADII) plans to apply a provisional anti-dumping duty in addition to existing duties and taxes on imports of mechanically manufactured carpets from China, Egypt, and Jordan.
According to the ADII, this duty will be liquidated and collected from April 1, and its proceeds integrated into the basis for calculating the import added value tax.
This follows a joint order by the Ministry of Economy and Finance and the Ministry of Industry and Trade, published in the latest issue of the Official Bulletin, according to a note from the national customs administration.
The provisional anti-dumping duty is expected to last for 6 months, and its rates of taxation vary from 9% for Jordanian imports, to 144% for Chinese carpets, according to the note.
In addition, the ADII explained that in December 2020, the Ministry of Industry and Trade had opened an anti-dumping investigation on imports of carpets and other textile floor coverings, mechanically manufactured, originating from the three countries.
This investigation was conducted following a request from the Moroccan Association of Textile and Clothing Industries (AMITH), which submitted material deemed “objective and sufficient” to justify the anti-dumping investigation and subsequent policy.
According to a notice published by the ministry on its website back in 2020, these imports “ constitute a threat to the domestic carpet industry and market.”
The dumping allegations are based on a comparison between the average normal value of mechanical carpets imported from the three countries and the export price.
The AMITH’s calculations revealed that the rates of dumping margins are estimated to be between 16.9% and 191.6%, which are rates far above the minimum level of 2%.
In addition, evidence provided by AMITH attests that imports of mechanical carpets, originating in China, Egypt and Jordan have experienced a “remarkable increase” in demand compared to domestic production and demand.
According to the Office of Foreign Exchange’s statistics, imports of mechanically manufactured carpets originating from China, Egypt and Jordan have experienced an increase of no less than 124% during the period from 2017 to 2019.
According to Moroccan textilians, imports of mechanical carpets from China, Egypt, and Jordan have had “negative” effects on the prices of Moroccan carpet prices.
Faced with fierce competition from these three countries, which offer prices up to 39% lower than those charged by Moroccan producers, domestic producers have been forced to align themselves with these low rates.
The forced price drop does not allow the domestic industry to achieve the profit margins, necessary for its continuity.
add your comment
Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.