Morocco Imposes Provisional Anti-Dumping Duties on Egyptian PVC

Doha – Morocco has implemented provisional anti-dumping duties on polyvinyl chloride (PVC) imports from Egypt, with additional tariffs ranging from 74.87% to 92.19%.

The measure took effect on Friday and will remain in place for four months, according to an announcement from the Customs and Indirect Tax Administration.

The decision follows a joint order by the Minister of Industry and Commerce and the Minister of Economy and Finance. The duties specifically target Egyptian PVC imports under tariff code 3904.10.90.00.

Egyptian Petrochemicals Company (EPC), Egypt’s main producer in the sector, faces a 74.87% duty rate, while other Egyptian PVC producers and exporters will be subject to a higher rate of 92.19%.

The investigation into alleged dumping practices began on November 27, 2024, following a request from SNEP, Morocco’s leading PVC producer. Preliminary findings revealed evidence of dumping that caused serious damage to the national production sector.

The anti-dumping investigation focused on suspension polymerized PVC resin, an essential component in various industrial sectors including construction, public works, packaging, and infrastructure.

Two Egyptian companies were specifically targeted in the investigation: EPC, which fully cooperated with Moroccan authorities, and TCI Sanmar Chemicals S.A.E, which did not provide the expected data.

Initially, EPC received a provisional margin of 18.29% based on information provided, while TCI Sanmar was assigned a 27.56% rate based on “available facts” due to its lack of cooperation. These margins were later increased significantly in the proposed provisional measures.

Investigation reveals harm from Egyptian imports

The investigation exposed a substantial increase in Egyptian PVC imports, both in volume and proportion relative to national production and consumption.

These imports consistently undercut prices in the Moroccan market, preventing local manufacturers from adjusting their own prices and limiting their profit margins and ability to invest or modernize.

The effects on Morocco’s national production sector were immediate and significant. Production decreased, sales declined, industrial capacity utilization rates fell, and the sector’s overall profitability eroded.

After rigorous analysis of available data, the ministry established a direct causal link between the increase in low-priced imports and the damage suffered by the national industry.

Other potential causes, such as internal management problems or contraction in demand, were examined and dismissed as determining factors.

Interested parties had until May 22 to submit written observations, comments, or additional information. A non-confidential version of the preliminary report was made available for consultation.