Glossary of Commonly Used Terms
[ Last Updated 20 January 2006 ]
|A|B|C|D|E|F|G|H|I|J|K|L|M|N|O|P|Q|R|S|T|U|V|W|X|Y|Z|
A
- Arm's Length
- A transaction is at arm's length if the price is not affected by any relationship between the buyer and seller, or if there is no compensation or reimbursement other than price.
C
- Causal Link
- The injury suffered by the New Zealand industry must be linked to the effects of dumping of the imported goods.
- Countervailing Duty
- A duty imposed to remedy injury caused by subsidies.
- Constructed value
- Where a price in the ordinary course of trade cannot be used as a normal value in the country of export, a constructed value can be used. A constructed value includes the cost of production and reasonable amounts for administration and selling costs, delivery charges, and other charges incurred in the sale, and an amount for profit.
- Country of Export/Country of Origin
- The country the goods are exported from is the country of export. The country of origin may be different if there is no process of manufacture or packing carried out in the country of export.
D
- Dumping
- The situation where the export price of goods imported into New Zealand is less than the normal value of the goods in the country of export.
- Dumping Margin
- The difference between the normal value in the country of export and the export price.
E
- EBIT -Earnings Before Interest and Taxation
- Earnings refers to the operating surplus arising from normal operations, and excludes extraordinary items and distributions to and contributions from owners.
- Export Price
- The price the importer in New Zealand pays for the goods, adjusted by costs related to exportation.
G
- Gross Profit
- The surplus resulting from the deduction of the cost of manufacture from sales over a given period. The cost of manufacture includes manufacturing overheads, but excludes selling, administration and financial expenses.
L
- Like Goods
- In relation to any goods, means other goods that are like those goods in all respects; or in the absence of such goods, goods which have characteristics closely resembling those goods.
N
- Net Profit
- For the purposes of this guide net profit has the same meaning as EBIT
- Normal Value
- The price which the allegedly dumped goods sell for in the ordinary course of trade in the country of export, or their constructed value (see above) or the price to a third country.
P
- Price Depression
- When selling prices in New Zealand are reduced because of the allegedly dumped goods.
- Price Suppression
- When price increases that would otherwise have taken place do not occur because of the dumped goods. This could mean that, for example, cost increases are not fully recovered.
- Price Undercutting
- When prices of the allegedly dumped product are sold on the New Zealand market at the relevant level of trade at lower prices than the like goods produced by the New Zealand industry.
R
- Related Party
- A person shall be deemed to be related to another person if:
- One of them directly or indirectly controls the other; or
- Both of them are directly or indirectly controlled by a third person; or
- Together they directly or indirectly control a third person
A person controls another person if they are in a position, whether legally or operationally, to exercise restraint or direction over the other person.
S
- Specific Subsidy
- A subsidy limited to an enterprise or industry or group of enterprises or industries. A subsidy can be limited to certain enterprises or industries by being available only in particular regions of a country. All export related subsidies, and subsidies related to the use of domestic over imported goods, are specific. Subsidies can also be specific if they are provided in practice to only certain enterprises or industries, even though the law may not explicitly limit their application in such a manner.
- Subsidies Agreement
- WTO Agreement on Subsidies and Countervailing Measures
W
- WTO
- World Trade Organisation (successor to GATT).
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