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• NZ Customs Instructions
• 3. Anti-Dumping Duties

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• Canned Peaches: SA

3.1 Description

The anti-dumping duties are imposed through the form of reference prices, where anti-dumping duty is payable only when the export price is lower than the reference price. The amount of anti-dumping duty payable is the difference between the two prices.

There are 2 forms of reference prices that are applicable to canned peaches from South Africa.

• Normal Value (Value for Duty Equivalent) amounts (referred to as NV(VFDE) amounts) in South African rand.
• Non-injurious Free on Board amounts (referred to as NIFOB amounts) in NZ dollars.

3.2 Method

Reference prices have been set for the most common can sizes (i.e. 410gm, 825gm and 3kg cans). The duty payable is calculated by deducting the New Zealand Value for Duty (VFD) from the reference price. Where the reference price is in South African rand it must be converted into NZ dollars at the Customs exchange rate at the date of import.

Where exchange rate movements cause the NIFOB amount to exceed the NV(VFDE) amount (which is set at the full margin of dumping) the duty shall be based on the NV(VFDE) amount using the Alternative Rates set out in the table below.

In the case of can sizes that are subject goods but for which separate rates have not been established in the table below, the rate of duty applying shall be based on the NIFOB amount or NV(VFDE) amount for the can size closest to the particular size of the can being imported.

3.3 Rates of Duty

The anti-dumping duty rates established as outlined above are as follows:

*Note: An alternative duty rate has been set at the NV (VFDE) rate. The NV (VFDE) rate should be applied instead of the NIFOB rate where the NIFOB amount exceeds the NV (VFDE) amount calculated in NZ dollars due to exchange rate fluctuations.

3.4 Example

Below is an example of the calculation of the anti-dumping duty applicable to these goods. Note that the invoiced amounts used below are not actual prices and are used for the purposes of the examples only.

You have an invoice presented by Brooke Holdings for the importation of canned peaches from Langeberg as follows:

The exchange rate at the date of importation is NZ$1 = US$0.77 and NZ$1= 5.50 rand.

The producer is Langeberg and the relevant NIFOB/ NV(VFDE) amounts for this company therefore apply.

Choice Grade 410g cans

Step 1: Identify the NZ VFD per Kg. i.e. establish the foreign value per kg of the goods. Convert this amount into NZD using the exchange rate at the date of importation. This amount is the NZ VFD/kg.

Total FVFD per kg is $USD 850/ 984 Kg = $USD 0.86

$USD 0.86/0.77 = NZ$ 1.12
NZ VFD per kg = NZ$ 1.12

Step 2: Identify the appropriate duty rate for comparison.

Nb. For Brooke Holdings imports from Langeberg only, where a NZ$ NIFOB rate has been set, an alternative NV(VFDE) rate has also been set in South African rands. Convert this alternative rate to New Zealand dollars using the exchange rate at the date of importation and compare to the NIFOB rate which is already in New Zealand dollars. Select the lower of the two rates as this is the applicable anti-dumping duty rate.

NIFOB rate = NZ$ and
Alternative rate = 12.07 rands or 12.07/5.50 = NZ$2.19

Since the NIFOB rate (NZ$xxxx) is less than the NV(VFDE) rate (NZ$ 2.19) the anti-dumping rate that applies in this case is NZ$xxxx.

Step 3: Calculate the anti-dumping duty payable.

Nb. No anti-dumping duty is payable if the VFD/kg is higher than the applicable reference price (in this example, NZ$xxxx

If the NZ VFD/kg is lower than the applicable reference price, the difference is the amount of duty payable per kilogram. The amount of duty payable per kilogram multiplied by the number of kilograms of product in the shipment (for that product line) is the total anti-dumping duty payable on the goods.

Since the NZ VFD (NZ$1.12) is lower than the applicable reference price (NZ$xxxx) by a margin of NZ$ xxxx, the choice grade peaches will attract a duty of: NZ$xxxx x 984 Kg = NZ$xxxx

Sub-Standard Grade 825g cans

Step 1: Total FVFD per Kg is $USD 1,150/1980 Kg = $USD 0.58

$USD 0.58/0.77 = NZ$ 0.75
NZ VFD per kg = NZ$ 0.75

Step 2: From the table, the NV(VFDE) rate of 7.11 rand applies. 7.11 rands/5.50 = NZ$ 1.29, therefore the duty = NZ$1.29 - NZ$ 0.75 = NZ$ 0.54.

Step 3: Since the VFD is lower than the NV (VFDE) by NZ$ 0.54, the Sub-standard grade peaches will attract a duty of: NZ$ 0.54 x 1980 Kg = $NZ 1,069.20.