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1. Definition of Dumping
Goods are dumped if their export price when imported into Egypt is less than their normal value in the country of export.
2. Export Price
- Export Price Definition
The export price is the price paid by the importer for the product in Egypt, not including any of the following parts of the price: costs, charges, and expenses that were paid in preparing the product for shipment to Egypt that are additional to those costs, expenses, and charges generally incurred on sales for home consumption in the exporting country, and any other costs, charges, and expenses resulting from the exportation of the goods or arising from their shipment from the country of export, such as: ocean freight, insurance, inland freight, wharf charges, warehousing charges, etc.
- Constructed Export Price Definition
In cases where the export price cannot be calculated according to the above method, it can be constructed on the basis of the sales price to the first unaffiliated buyer in the Egyptian market. The constructed export price is calculated as follows:
The price paid by the first independent buyer in Egypt minus:
- Additional manufacturing processing costs in Egypt (if any)
- SG&A for further manufacturing in Egypt
- Other costs (specify)
- Net profit/loss
- Inland freight in Egypt
- Importation port clearance fees
- Sales tax
- Custom duties
- Marine insurance
- Ocean freight
3. Normal Value
- Normal Value Definition
The normal value is the price paid for the goods under investigation in the ordinary course of trade for home consumption in the country of origin/export.
- Constructed Normal Value Definition
In the case of the absence of a normal value based on the price paid for the goods under investigation in the ordinary course of trade for home consumption in the country of origin/export, a constructed normal value can be calculated by using the following method:
The cost of production (including raw material costs, wages, indirect overheads) plus the selling, general and administrative expenses (SG&A), in addition to the amount of profit normally realized on the sale of the goods.
- Export Price to a Third Country
In case of the absence of a normal value based on the price paid for the goods under investigation in the ordinary course of trade for home consumption in the country of origin/export, another alternative method of establishing a normal value is to use the price at which the goods under investigation are exported to a third country.
4. Margin of Dumping
The margin of dumping is the difference between the normal value and the export price as shown above.
The proof of the existence of dumping is not sufficient to proceed with an anti-dumping investigation. It also must be demonstrated that the dumping has caused, or threatens to cause, material injury to the Egyptian industry, or material retardation to the establishment of such an industry in Egypt.
Hence, proving the existence of material injury to the domestic industry caused by dumping is required in order to impose remedial anti-dumping duties.
5. Injury to the Domestic Industry
Evidence of the existence of injury is required in any application submitted to the Department. The existence of a causal link between the injury suffered by the Egyptian industry and the dumped imports is necessary; therefore, it must be clearly shown that the existing injury has been directly caused by imports with dumped prices.
The following factors need to be addressed in any complaint application in order for the Department to make its injury examination:
- Whether there has been a significant increase in the import volumes of the allegedly dumped imports, either in absolute terms or relative to production or consumption
- Constructed Normal Value
- Whether there has been price undercutting by the allegedly dumped imports when compared with the price of the like product sold by the domestic industry
- Whether the effect of the allegedly dumped imports has led the domestic industry to lower prices (price depression) or prevent price increases that otherwise would have occurred (price suppression)
- The impact of the dumped imports on the relevant economic factors and indices of the domestic industry including: actual and potential decline in sales, profits, output, market share, productivity, return on investments, utilization of capacity; factors affecting domestic prices; the magnitude of the margin of dumping; and actual and potential negative effects on cash flow, inventories, employment, wages, growth and ability to raise capital or investments.
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