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The National Competition Agency has completed the first dumping case

The Georgian National Competition Agency has completed the first case on dumping. The case concerns the case study started on the basis of the application by the local industry, according to which the dumping of filter cigarettes was being imported from Armenia in the period of May 14, 2022 - May 14, 2023.

In the process of studying the issue, the Agency processed the information based on both local and exporting country sources. At the stage of the study, a high involvement of stakeholders and a cooperation were highlighted.

After the initiation of the investigation, all interested parties were informed after the withdrawal of the statement by the local industry, the investigation into the alleged dumping of filter cigarettes imported from Armenia was terminated. In particular, according to the applicant's, as a result of the initiation of the study of the issue by the Agency, the competitive environment in the market has improved, the situation in the market is changing, in relation to the problematic issues raised by the applicant.

Before the start of the investigation, at the stage of considering the material admissibility of the application, the Agency had information supported by research that the weighted average invoice value of 72,740 boxes (36 million boxes) of filter cigarettes of several names was 0.579 GEL (1 box), and the normal value for the same goods was the weighted average price according to the imported quantities. The amount at the same, comparable level of trade was 0.810 GEL (1 box). Accordingly, during the study period, the dumping margin for the mentioned products was 39.77%. Based on this, there was a reasonable assumption of possible damage to the local industry of importing products at a dumping price and a cause-and-effect relationship between them.

As for the total indicators of cigarettes imported from Armenia. It was approximately 100,000 boxes, more than 50 million boxes during the study period. As the results of the analysis, in 2020-2022, the dynamics of the total import of filter cigarettes from the Republic of Armenia, both in terms of quantity and value, was characterized by an increasing trend.

The application regarding the alleged dumping was received by the National Competition Agency on May 15 of this year. The case study started on June 29, and the study was terminated on September 18 based on the withdrawal of the statement.

264 million GEL cigarettes were imported (276 million packs), the largest share of imports have Turkey - 54%, Armenia - 19%, Uzbekistan - 10%, Poland - 7% and Ukraine - 4%. The market share of the local industry is within 10%.

For information: the legislation "On the introduction of anti-dumping measures in trade" entered into force in 2021, and the National Competition Agency was entrusted with its implementation. The law prohibits dumping imports that cause or threaten to cause material injury to domestic industry. The local industry is entitled to apply to the Agency in the form of a special application.

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