Antidumping duties impact to floor & wall tiles order.
Our Ref: xxx
Date:
To
xxx Contracting LLC
P. O. Box xxx
Dubai, U.A.E.
Attention : Mr. xxx, Group Procurement Manager
Project : xxx Phase 2
Subject : Antidumping duties impact to floor & wall tiles order.
Dear Sir,
We are writing to inform you that we have issued the LPO for the floor and wall tiles to M/s Home items in line with our scope of work and production schedule. However, the supplier responded that the order will not be processed until receiving a confirmation and undertaking that in case of antidumping duties applied to the shipment, the cost shall be covered by us. (Attachment #1)
The imposition of definitive antidumping duties against imports of ceramic floor and wall tiles from China & India was issued by the Ministry of Economy in the Directive No (1) for the year of xxx (Attachment #2).
Till date the antidumping is not yet applied by the customs authority, but as per the Directive No (1), the definitive antidumping duties shall enter into force by 6-June-xxx. For that, it may be applied at any point prior the delivery of our order to UAE.
The Floor & Wall tiles for this project, falls under this new Directive since the source of origin is India and are subject to the definitive antidumping duties.
These tiles were directly selected by the client and the rate of AED 22/sqm which our quotation was based on, was agreed between the client and the supplier (M/s Home Items) for the project. (Attachment #3)
We have absorbed the price increase of AED 1.5/sqm that the supplier added under the excuse of transportation cost to our factory based on goodwill towards the project but (Contractor Name) isn’t in a position to submit such undertaking letter to the supplier for the antidumping duties prior receiving the same from the client.
Antidumping is a new governmental regulation, which was not part of the rate provided to us by the client, and since this material is selected directly by the client and its rate was imposed to us, we require a written confirmation that in case this antidumping duties applies on our shipment for the floor and wall tiles related to this project, it shall be considered as a variation to (Contractor Name).
We urge you to provide us with the written confirmation of accepting the duties, if occurred, as a variation to (Contractor Name) at the earliest, to enable us to forward the same to the supplier and proceed with the order. We are also at your disposal to submit locally available alternative materials at or near the rates specified by the Client should you wish to follow this course of action.
This is a critical concern which has been communicate earlier and which remains pending, and (Contractor Name) required clear and urgent instruction on how to proceed in order to avoid delays on pods production and delivery.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager