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• NZCS Instruction TR800/D/02/2

• Trade Remedies

• Completed Investigations

• Dumping Investigations

• Galvanised Wire: SA

Non-Confidential

Instruction TR800/D/02/2

January 2003

• 1. Introduction
• 2. Goods Subject to Anti-Dumping Duties
  • 2.1 Description
  • 2.2 Country/Countries of Origin
  • 2.3 List of South African Suppliers/Exporters
• 3. Anti-Dumping Duties
  • 3.1 Description
  • 3.2 Method
  • 3.3 Rates of Duty
  • 3.4 Examples
• 4. Notes
  • 4.1 General
• 5. FAQ Page
• 6. Further Information

1. Introduction

1. The final anti-dumping duties apply retrospectively from the date the provisional duties came into effect (31 October 2002).

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 2mm and 4.5mm in diameter, but EXCLUDING the following:

• galvanised steel spring wire AS1472 exceeding 4mm in diameter.

2.2 Country/Countries of Origin

4. The country of origin of the subject goods is South Africa.

2.3 List of South African Suppliers/Exporters

Consolidated Wire Industries (Pty) Ltd
Independent Galvanising (Pty) Ltd
Cape Gate Export Dvn (Pty) Ltd

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. The anti-dumping duties imposed by the Minister of Commerce and to which these instructions relate are in 3 forms:

1. Normal Value (Value for Duty Equivalent) amounts (referred to as NV(VFDE) amounts)
2. Non-injurious Free on Board amounts (referred to as NIFOB amounts)
3. Ad valorem percentages of the declared value for duty of the goods.

6. NV(VFDE) amounts have been set for two exporters and NIFOB amounts have been set for one exporter of galvanised wire to New Zealand. There is a residual ad valorem percentage rate for any other suppliers/exporters, except for two suppliers who were found to be not dumping (African Gabions (Pty) Ltd and Finmesa Investment Corporation to whom no anti-dumping duty applies). There is also a separate rate for each of the 3 different categories, the categories being determined by the diameter of the galvanised wire.

7. NV(VFDE) amounts have been established in categories 1, 2 and 3 for Independent and Consolidated. NIFOB amounts have been established for Cape Gate for the three categories.

8. NV(VFDE) amounts are specified in South African rand and the NIFOB amounts are specified in New Zealand dollars.

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 South Africa is:

1. For subject goods from the suppliers and exporters listed above, the amount per kilogram by which the NIFOB amount or NV(VFDE) amount exceeds the declared value for duty (VFD).
2. For all other suppliers of subject goods (Except African Gabions (Pty) Ltd and Finmesa Investment Corporation), a percentage ad valorem rate on the declared value for duty in New Zealand Dollars.

3.2 Method

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

1. Establish the name of the South African 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 wires fall 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.
3. Establish the diameter of each galvanised wire in millimetres.
4. If the applicable amount is a NV(VFDE) amount, convert the NV(VFDE) amount from Rand to New Zealand dollars at the NZCS exchange rate applying at the date of import. Establish the value for duty in New Zealand dollars for each size of galvanised wire and compare it to the NIFOB and NV(VFDE) amounts for the exporters listed above. If the VFD per kg is less than the relevant NIFOB or NV(VFDE) amount per kg, duty is payable and is equal to the difference between the NIFOB or NV(VFDE) amount per kg and the VFD per kg. For "other suppliers" apply the relevant percentage rate to calculate the amount of duty.

3.3 Rates of Duty

11. The NIFOB and NV (VFDE) amounts established for the known suppliers (listed above) and ad valorem rates 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 Consolidated for importation of galvanised wire as follows:

The exchange rates at the date of importation are NZ$1.00 = 4.90 rand

The producer is Consolidated Wire Industries (Pty) Ltd and the NV(VFDE) amounts for that supplier therefore apply.

2.46mm

The 2.46mm wire falls into category 1.

The NV(VFDE) for category 1 Consolidated is [Text deleted due to confidentiality] rand.

For 40,000kg of galvanised wire, the total VFD amount in New Zealand dollars is therefore: (80,000/4.90) = NZ$16,326.53

VFD in New Zealand dollars per kg is $16,326.53/40,000 = NZ$0.41/kg

The anti-dumping duty NV(VFDE) amount per kg for category 1 Consolidated wire in New Zealand dollars is [Text deleted due to confidentiality]/4.90 = NZ$[Text deleted due to confidentiality]/kg.

Since the VFD/kg of NZ$0.41 is lower than the NV(VFDE) rate of NZ$[Text deleted due to confidentiality]/kg, anti-dumping duty is payable for the 2.46mm galvanised wire exported.

The anti-dumping duty payable per kg for the 2.46mm galvanised wire is: NZ$[Text deleted due to confidentiality]/kg minus NZ$0.41/kg = NZ$[Text deleted due to confidentiality]/kg.

The total anti-dumping duty payable for the 40,000kg of 2.46mm galvanised wire is NZ$[Text deleted due to confidentiality]x40,000 = NZ$[Text deleted due to confidentiality].

4mm

The 4mm falls into category 3.

The NV(VFDE) for category 3 Consolidated is [Text deleted due to confidentiality] rand.

For 20,000kg of galvanised wire, the total VFD amount in New Zealand dollars is: (110,000/4.90) = NZ$22,448.98.

VFD in New Zealand Dollars per kg is $22,448.98/20,000 = NZ$1.12/kg

The anti-dumping duty rate per kg for category 3 Consolidated in New Zealand dollars is [Text deleted due to confidentiality]/4.90 = NZ$[Text deleted due to confidentiality]/kg

Since the VFD per kg of NZ$1.12/kg is higher than the anti-dumping rate of NZ$[Text deleted due to confidentiality]/kg, no anti-dumping duty is payable for the 4mm galvanised wire.

Example 2

You have an invoice issued by Cape Gate Export Dvn (Pty) Ltd for an importation of galvanised wire as follows:

The exchange rate at the date of importation is NZ$1.00 = US$0.44.

2.5mm

The 2.5mm galvanised wire falls in category 2.

The rate of duty for category 2 is NZ$[Text deleted due to confidentiality]/kg.

Total VFD is US$48,000/0.44 = NZ$109,090.91.

VFD per kg is NZ$109,090.91/80,000 = NZ$1.36/kg

The NIFOB for category 2 Cape Gate is NZ$[Text deleted due to confidentiality].

Since the VFD of NZ$1.36/kg is lower than the NIFOB rate of NZ$[Text deleted due to confidentiality]/kg for category 2, anti-dumping duty is payable for the 2.5mm wire exported.

The anti-dumping duty payable per kg for the 2.5mm galvanised wire is: NZ$[Text deleted due to confidentiality]/kg minus NZ$1.36/kg = NZ$[Text deleted due to confidentiality]/kg

The total anti-dumping duty payable for the 80,000kg of 2.5mm galvanised wire is NZ$[Text deleted due to confidentiality]*80,000 = NZ$[Text deleted due to confidentiality]

5mm

The 5mm galvanised wire does not fall into any of the categories above and therefore does not attract any anti-dumping duty.

Example 3

You have an invoice issued by XYZ South Africa (Pty) Ltd for an importation of galvanised wire as follows:

The exchange rate at the date of importation is NZ$1.00 = US$0.44.

As XYZ is not an exporter against whom a specific reference price has been set, the rate for "other suppliers" would apply.

The 2.46mm galvanised wire falls in category 1.

The rate of duty for category 1 Other supplier is 39%.

Total VFD is $4,000/0.44 = NZ$9,090.91

Duty is 39% of $9,090.91 = $3,545.45

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 South Africa.

5. FAQ Page

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

6. Further Information

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