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• NZCS Instruction TR800/D/03/7

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• Completed Investigations

• Dumping Investigations

• Galvanised Wire: China

Important: These instructions have been superseded by Instruction RCP/8/7/3/1. The reassessed rates in Instruction RCP/8/7/3/1 are payable on and from 16 November 2005.

Non-Confidential

Instruction TR800/D/03/7

April 2004

Information in these Instructions relating to anti-dumping duties which is considered to be confidential in terms of Sections 9(2)(b)(ii) and 9(2)(a)(i) of the Official Information Act has been marked xxxx.

Also available as: Galvanised Wire from Malaysia: NZCS Instructions [83 KB PDF](instructions for obtaining the Adobe Acrobat viewer)

Contents

• 1. Introduction
• 2. Goods Subject to Anti-Dumping Duties
  • 2.1 Description
  • 2.2 Country/Countries of Origin
  • 2.3 List of Malaysian Suppliers/Exporters
• 3. Anti-Dumping Duties
  • 3.1 Description
  • 3.2 Method
    • Named Exporters
    • If the Supplier Is Not Named and Is Not Exempt
  • 3.3 Rates of Duty
  • 3.4 Examples
    • Example 1
    • Example 2
    • Example 3
• 4. Notes
  • 4.1 General
  • 4.2 Invoicing
• 5. FAQ Page
• 6. Further Information

1. Introduction

1. The final anti-dumping duties apply from the date of the provisional duties. The provisional measures came into effect on 24 March 2004.

2. If the amount of any provisional duty paid by importers during the investigation period exceeds the amount of the final duty, the amount of the excess should be refunded. Importers are not, however, required to pay additional duty if the final duty is higher than any provisional duty paid.

2. Goods Subject to Anti-Dumping Duties

2.1 Description

3. The goods subject to anti-dumping duty are:

Galvanised steel wire of high, medium and low tensile strength between (and including) 2mm and 4.5mm in diameter

2.2 Country/Countries of Origin

4. The country of origin of the subject goods is Malaysia.

2.3 List of Malaysian Suppliers/Exporters

Aspac Alliance Steel Sdn Bhd

Southern Wire Industries (Malaysia) Sdn Bhd

RCI Wire Sdn Bhd (Exempt from anti-dumping duty)

3. Anti-Dumping Duties

3.1 Description

5. A reference price mechanism is used to impose anti-dumping duties for the suppliers above. A "residual" ad valorem rate applies to any other suppliers up to a capped amount. The anti-dumping duties imposed by the Minister of Commerce and to which these instructions relate are in 2 forms:

1. Normal Value (Value for Duty Equivalent) amounts (referred to as NV(VFDE) amounts), and
2. An ad valorem percentage of the FOB invoice price of the goods up to a capped amount (in the form of a NV(VFDE) amount).

6. NV(VFDE) amounts have been set for two Malaysian exporters of galvanised wire to New Zealand. There is also a residual ad valorem percentage rate for any other suppliers/exporters, except for one supplier who was found not to be dumping (RCI Wire Sdn Bhd) and to whom no anti-dumping duty applies.

7. There are separate rates for each size of wire exported. Wire sizes outside of these specified sizes but within the description of the goods (see Section 2.1) will attract the same duty as the wire size, in diameter, closest to it (measured at the widest diameter in the case of oval wire).

8. NV(VFDE) amounts are specified in Malaysian Ringgit (RM).

9. The amount of anti-dumping duty to be paid on demand in respect of each importation of galvanised wire imported or intended to be imported into New Zealand from Malaysia is:

1. For subject goods from the suppliers and exporters listed above in section 2.3 (except RCI Wire Sdn Bhd), the amount per kilogram by which the NV(VFDE) amount exceeds the FOB invoiced value of the goods.
2. For all other suppliers of subject goods (except RCI Wire Sdn Bhd), a percentage ad valorem rate calculated on the FOB value per kilogram of the goods apply. The amount of duty payable using the ad valorem rate is capped at a NV(VFDE) rate for each size of galvanised wire.

3.2 Method

10. For each importation of galvanised wire it will be necessary to:

1. Establish the name of the Malaysian exporter of the galvanised wire. The exporter normally invoices the importer directly so the name of the exporter should be obvious from the invoice.
2. Establish if the galvanised wire falls within the description of the goods subject to duty. Normally this will simply be a matter of establishing if the size of the galvanised wire is within the range of 2 to 4.5mm in diameter (inclusive).
3. Establish the diameter of each galvanised wire size in millimetres (each size is usually described by its diameter in millimetres).
4. Take note of the closest size (in Section 3.3 Rates of Duty) to each of the wire sizes listed on the invoice.

Named Exporters

(see Suppliers/Exporters at Section 2.3):

5. If the Supplier/Exporter is a named exporter, the FOB per kilogram for each size of wire imported needs to be compared with the relevant NV(VFDE).
6. To compare the invoiced FOB price per kilogram with the NV(VFDE): Convert the invoiced FOB amount for each size of wire into Ringgit (Malaysia) (RM) at the exchange rate applying at the date of import. (Note: many of the invoices will be in United States dollars (USD), which will need to be converted to RM.)
   • If the FOB amount per kilogram in RM is equal to or greater than the NV(VFDE) amount, no duty is payable.
   • If the FOB amount per kilogram in RM is less than the NV(VFDE), the amount of duty payable is the difference between the FOB amount and the NV(VFDE).

If the Supplier Is Not Named and Is Not Exempt

7. To find out whether the capped rate applies, take the total (i.e. the FOB price plus 9 percent) and compare with the NV(VFDE) "Other Suppliers" capped rate in the final line of the table below.
   • If the total is less than the capped rate, the amount of anti-dumping duty payable is 9 percent of the FOB invoice price.
   • If the total is equal to or greater than the capped rate, the amount of duty payable (per kilogram) is the capped rate minus the FOB invoice price.
   • If the FOB price, by itself, is higher than the capped rate, no duty is payable.

3.3 Rates of Duty

11. The NV(VFDE) amounts established for the known suppliers and ad valorem rate for "other suppliers" are as follows:

3.4 Examples

12. Below are examples of the calculation of the anti-dumping duty applicable to these goods. Please note that the values in the examples are not actual values but have merely been used to illustrate the method of calculating duties.

Example 1

You have an invoice issued by Southern Wire for importation of galvanised wire as follows:

1. The producer is Southern Wire Industries (Malaysia) Sdn Bhd (SWI) therefore the NV(VFDE) amounts for that supplier apply.
2. The exchange rate¹ at the date of importation is USD1.00 = RM3.7800.
   The exchange rate at the date of importation is NZD1.00 = RM2.3880.

For Size 2.24mm

3. Calculate the Price per kilogram: The total FOB price for 2.24mm diameter galvanised wire is USD22,000 divided by 40,000kg = USD0.55 per kilogram (FOB).
4. Convert to Ringgit (Malaysian) (RM); USD0.55 per kilogram; USD0.55 x 3.78 RM (exchange rate), which equals 2.079 per kilogram (RM2.08 per kilogram rounded).
5. NV(VFDE) for Southern Wire for 2.24mm is RMxxxx per kilogram, so compare with answer (RM2.08 per kilogram).
6. Since the FOB per kilogram (RM2.08 per kilogram) is lower than the NV(VFDE) rate (RMxxxx per kilogram), anti-dumping duty is payable.
7. The amount of anti-dumping duty payable per kilogram for 2.24mm galvanised wire is RMxxxx per kilogram [RMxxxx per kilogram minus RM2.08 per kilogram].
8. The total anti-dumping duty payable: 40,000kg of 2.24mm galvanised wire is RMxxxx per kilogram x 40,000kg = RMxxxx; In New Zealand dollars at exchange rate NZD1.00 to RM2.3880, [RMxxxx divided by 2.3880] = NZDxxxx.

For Size 3.8mm

(see Section 3.2iv above)

1. The closest size to 3.8mm is 4mm, so use the NV(VFDE) for the 4mm size.
2. The FOB price per kilogram for 3.8mm diameter galvanised wire is USD11,800 divided by 20,000kg = USD0.59 per kilogram (FOB).
3. Convert to Ringgit (Malaysian) (RM); galvanised wire at USD0.59 per kilogram; USD0.59 x RM3.78 (exchange rate), which equals 2.2302 (RM2.23 rounded).
4. NV(VFDE) Southern Wire for 3.8mm (closest to 4mm) is RMxxxx, so compare with answer (RM2.23).
5. Since the FOB per kilogram (RM2.23) is lower than the NV(VFDE) rate (RMxxxx per kilogram), anti-dumping duty is payable for the equivalent of the 3.8mm galvanised wire exported.
6. The amount of anti-dumping duty payable per kilogram for the 3.8mm galvanised wire is: RMxxxxkilogram minus RM2.23 per kilogram = RMxxxx per kilogram.
7. The total anti-dumping duty payable for the 20,000kg of 3.8mm galvanised wire is RMxxxx [RMxxxx per kilogram x 20,000kg]. In New Zealand dollars this is NZDxxxx at exchange rate NZD1.00 to RM2.3880 [RMxxxx divided by 2.3880].

Example 2

For a Malaysian manufacturer not listed in Section 2.3.

1. The producer is not in the above list of suppliers or exporters, therefore, the "Other Supplier" percentage (ad valorem) rate applies up to a capped amount.
2. The exchange rate at the date of importation is USD1.00 = RM3.8000
   The exchange rate at the date of importation is NZD1.00 = RM2.3771

For Size 2.5mm

3. To find the amount per kilogram: The total FOB price for 2.5mm diameter galvanised wire is USD52,000 divided by 80,000kg = USD0.65 per kilogram FOB; (or USD650 per tonne divided by 1000 = USD0.65 per kilogram).
4. Convert to RM: galvanised wire at USD0.65 per kilogram; USD0.65 x RM3.80 (exchange rate), which equals RM2.47 per kilogram.
5. If the FOB price per kilogram of the goods by itself is higher (RM2.47) than the capped NV(VFDE) rate for 2.5mm wire (RMxxxx) as in this case for an un-named supplier, no anti-dumping duty is payable.
6. If the FOB price per kilogram was lower than the capped NV(VFDE), see Section 3.2vii above.

5mm

The 5mm galvanised wire is outside of the subject goods description (see Section 2.1), therefore, it does not attract anti-dumping duty.

Example 3

You have an invoice issued by XYZ Malaysia Sdn Bhd for an importation of galvanised wire as follows:

1. The producer is not in the above list of suppliers or exporters (see Section 2.3), therefore, the percentage (ad valorem) rate applies (up to a capped amount).
2. The exchange rate at the date of importation is USD1.00 = RM3.7500
   The exchange rate at the date of importation is NZD1.00 = RM2.4200

For Size 2mm

3. The total FOB invoice price for 2mm diameter galvanised wire is USD4,450 divided by 10,000kg = USD0.445 per kilogram FOB, (or USD445.00 per tonne FOB divided by 1000).
4. Convert to RM: galvanised wire at USD0.445 per kilogram; USD0.445 x RM3.7500 (exchange rate) = RM1.66875 per kilogram (RM1.67 per kilogram rounded).

Multiply theRMFOB value per kilogram for each size of wire by 9 percent to find out whether the "Other Supplier" capped rate (Section 3.3) applies:

5. Take the total (i.e. the FOB price plus 9 percent) and compare with the NV(VFDE) capped rate [RM1.67 per kilogram x 1.09 = RM1.82 per kilogram].
   This result (RM1.82 per kilogram) is lower than the capped NV(VFDE) rate for 2mm wire (RMxxxx per kilogram) in this case.
6. The amount of anti-dumping duty payable per kilogram: Take the total and subtract the RMFOB price [RM1.82 per kilogram minus RM1.67 per kilogram] = RM0.15 per kilogram, which equates to the ad valorem rate of 9 percent of the FOB.
7. For the total anti-dumping duty payable: Multiply the total quantity (10,000kg) of 2mm galvanised wire by the amount of duty payable [10,000kg x RM0.15 per kilogram] = RM1,500.
   In New Zealand dollars (exchange rate NZD1.00 to RM2.4200) this equals (RM1,500 divided by 2.4200) NZD619.83.

4. Notes

4.1 General

13. An ALERT has been put in place for Tariff Item 7217.20.10 and Statistical Keys 05L, 07G, 08E, 09C, 11E, 13A, 15H, 16F, 17D, 18B, 25E, 27A, 28K, 29H, 31K, 33F, 35B, 36L, 37J and 39E, and Tariff Item 7217.20.90 and Statistical Keys 05D, 07L, 08J, 09G, 11J, 13E, 15A, 16K, 17H and 18F of the Tariff of New Zealand for subject goods originating from Malaysia.

4.2 Invoicing

14. If the invoice prices are not FOB, (that is, they include freight or insurance or both) and the line amounts for these are not specified individually but are recorded as one amount in a separate line, please follow the following example to calculate the FOB price for individual product sizes.

1. Add up the total invoiced amount for all of the product sizes. Do not include the freight and/or the insurance component.
   $750 + $3,000 + $6,250 = $10,000
2. Calculate the percentage of the dollar total represented by the product size, of the total amount calculated in (a) above.
   2mm = $750 / $10,000 = 7.5%
   2.5mm = $3,000 / $10,000 = 30%
   4mm = $6,250 / $10,000 = 62.5%
3. Apply this percentage to the amount of freight and/or insurance shown on the entry.
   2mm 7.5% * $800 = $60
   2.5mm 30% * $800 = $240
   4mm 62.5% * $800 = $500
4. Subtract the amount calculated in (c) above from the invoiced amount for that size to calculate the FOB applicable to that product size.
   2mm $750 - $60 = $690
   2.5mm $3,000 - $240 = $2,760
   4mm $6,250 - $500 = $5,750
5. Any duties calculated should be based on the FOB amounts calculated in (d) above, and not the amount that includes freight and/or insurance.

5. FAQ Page

15. The Frequently Asked Questions page may provide additional guidance regarding the applicability of the duties.

6. Further Information

16. Should you have any queries regarding the operation of the anti-dumping duties described in these instructions please contact the Trade Remedies Group as shown below:

¹In the absence of a Customs exchange rate for Malaysia, the Ministry (MED) has used an historical site for currency conversions for the currency exchange rates at OANDA, The Currency Site [link to external website].