Glass industry opposes 10% profit Margin in soda ash case

The All Pakistan Glass Manufacturers Association (APGMA) has called on the National Tariff Commission (NTC) to review its methodology in the ongoing anti-dumping investigation into soda ash imports from Türkiye and Kenya

The All Pakistan Glass Manufacturers Association (APGMA) has called on the National Tariff Commission (NTC) to review its methodology in the ongoing anti-dumping investigation into soda ash imports from Türkiye and Kenya, arguing that the commission’s preliminary findings are based on an unexplained and inconsistent profit assumption that could significantly affect the outcome of the case.

In a formal representation submitted to the commission, APGMA Secretary General Dawoodur Rasheed expressed concerns over the methodology used in the preliminary determination issued under anti-dumping investigation No. 69/2025/NTC/SA. He said the commission calculated the “non-injurious price” by applying a profit margin of 10 percent on the cost of production and sale, despite offering no detailed explanation, supporting data or legal justification for adopting the higher benchmark.

According to the association, the NTC has consistently used a five percent profit margin in previous anti-dumping investigations across a range of industries when determining the non-injurious price. APGMA argued that the sudden shift to a 10 percent profit assumption represents a departure from established practice and raises concerns over consistency, transparency and fairness in Pakistan’s trade remedy process.

The association maintained that the profit benchmark plays a critical role in calculating injury margins, which ultimately determine whether anti-dumping duties should be imposed. It warned that an inflated profit assumption could distort the injury analysis and lead to conclusions that are not supported by market realities.

Supporting the association’s position, Atif Iqbal, Executive Director of the Organisation for Advancement and Safeguard Industrial Sector (OASIS), said the NTC has traditionally relied on a five percent normal profit margin in several anti-dumping investigations, including cases involving ceramic tiles. He noted that the same benchmark has also been applied in numerous other industrial sectors over the years.

To reinforce its argument, APGMA submitted a comparative record of previous anti-dumping investigations in which the commission reportedly adopted a five percent profit margin. These cases included products such as polyester staple fibre, hydrogen peroxide, cold-rolled steel coils, PVC flooring, chlorinated paraffin wax and the pharmaceutical ingredient cefadroxil.

The association pointed out that the current soda ash investigation appears to be the first publicly disclosed case in which the commission has adopted a 10 percent profit assumption while constructing the non-injurious price.

Dawoodur Rasheed stated that maintaining the longstanding five percent benchmark would adequately protect the domestic industry from any genuine injury caused by dumped imports while ensuring that the commission’s calculations remain objective, transparent and consistent with previous decisions.

He further argued that the available evidence does not indicate the domestic soda ash industry has suffered material injury severe enough to justify the adoption of a substantially higher profit margin.

APGMA has urged the National Tariff Commission to reconsider its preliminary determination and revise the methodology before issuing its final findings. The association believes aligning the investigation with established precedents would strengthen confidence in Pakistan’s trade remedy framework, promote regulatory consistency and ensure that all stakeholders are treated fairly under the country’s anti-dumping laws.