Dumping duties on ceramic and porcelain tiles begin to apply

Zakat, Tax and Customs Authority announced the  implementation of “dumping duties” from October 20, 2020 to June 5, 2025. It explained that the dumping duties came on the product of ceramic and porcelain tiles originating or exported from China and India.

This decision comes after the adoption of the Ministerial Committee formed by the Ministers of Industry of the GCC Member States, and the  recommendation of the Standing Committee for Combating Injurious Practices in International Trade of the GCC States, to impose  final customs duties for anti-dumping for a period of five years against imports of ceramic and porcelain tiles originating or exported from the People’s Republic of China and India. The Ministerial Committee also approved the recommendation of the Standing Committee to exclude imports from dumping duties on the Kingdom of Spain. The following has been adopted:

  • Collection of final (final) dumping duties on imports by the Kingdom of Saudi Arabia of a ceramic tile and tile product for tiling or covering walls or fireplaces, even if they are on a ceramic stand for finishing ceramic and porcelain tiles originating or exported from China and India. And included under the customs item (6907) according to the following customs items of the integrated customs tariff:
  1. Its coefficient of absorption of water is no more than 0.5 percent by weight.
  2. Its water absorption coefficient is more than 0.5 percent by weight and does not exceed 10 percent.
  3. Its water absorption coefficient is more than 1 percent by weight.
  4. Porcelain for finishing.
  • Items included in sub-item (99073000) shall be excluded from the unified customs tariff of the States of the Cooperation Council for the Arab States of the Gulf.
  • Ensure that the invoices received with the consignment are correct and that they are issued by the manufacturer written on the commodity or on its outer packaging. The declared value shall also be verified, and in the event of any observation or decrease in value, it shall be corrected in accordance with the provisions of Article (1) of the Executive Regulations. Customs duties, dumping margin duty and value-added tax are collected on this basis. Upon objection of the importer, it shall be linked to the insurance and the entire transaction shall be submitted for study with a sample of the incoming to the Value Separation Committee at the Authority’s office.
  • Ensure the existence of an indication of origin. Which shows the country of production and the name of the producing company in a fixed manner that cannot be removed from the incoming product and in a manufactured manner and matches the indication with the incoming documents. In the absence of a fixed indication of origin on the product, the consignment shall be returned to its source with an undertaking from the importer. In the event of a repeat violation, a fine of (5000) five thousand riyals shall be imposed in accordance with Article (30) of the Executive Regulations of the Customs Law.

What is dumping?

Dumping is defined as a case of discrimination in the pricing of a product when the latter is sold in the market of an importing country at a lower price than the selling price in the market of the exporting country. The selling price in the importing country may reach very low levels or lower cost. This is done deliberately with the aim of keeping competitors who manufacture similar products or delaying the emergence of an industry due to imports of the commodity at dumping prices.

According to the General Agreement on Tariffs and Trade (GATT) standards, a commodity is considered dumping if any of the following conditions are met:

  • If the export price of the commodity is lower than its price in the domestic market of the exporting country.
  • Or if their price in foreign markets is lower than the cost of their production.

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