Galvanised Wire from South Africa: Provisional Measures
[ Last Updated 25 January 2006 ]
Non-Confidential
TR800/D/02/2
7 November 2002
Contents
Introduction
A dumping investigation into galvanised wire from South Africa was initiated on 28 June 2002. Following a request by the New Zealand industry the Minister of Commerce has imposed provisional anti-dumping duties effective from 31 October 2002.
The provisional anti-dumping duties have been imposed by the Minister to prevent material injury to the New Zealand industry during the remaining period of the investigation. The provisional anti-dumping duties will cease to have effect when the Minister makes her final determination, which must be made no later than 25 December 2002. If final anti-dumping duties are imposed separate instructions will be issued.
Goods Subject to Provisional Anti-Dumping Duties
Galvanised steel wire of high, medium and low tensile strength between 2mm and 4.5mm in diameter.
Country of Origin
The country of origin to which the duties apply is South Africa.
Provisional Anti-Dumping Duties
Description
The provisional anti-dumping duties have been imposed as an ad valorem percentage of the declared value for duty of the goods.
Separate rates have been set for the South African producers/suppliers of galvanised wires exporting to New Zealand and there is a residual rate for any other producers/suppliers.
Method
For each importation of galvanised wire it will be necessary to:
- Establish the name of the South African producer1 of galvanised wire. The producer normally invoices the importer directly so the name of the producer/supplier should be obvious from the invoice.
- 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 diameter of the galvanised wire is between 2.0mm and 4.5mm.
- Establish the value for duty in New Zealand dollars for the galvanised wire and apply the relevant percentage rate to calculate the amount of duty.
Rates of Duty
The ad valorem rates of duty to be applied to the declared value for duty are as follows:
| Cape Gate Export Dvn (Pty) Ltd. | 33 percent |
| Consolidated Wire Industries (Pty) Ltd. | 27 percent |
| Independent Galvanising (Pty) Ltd. | 10 percent |
| Other suppliers (Except African Gabions(Pty) Ltd and Finmesa Investment Corporation) | 33 percent |
Examples
Below are examples of the calculation of the provisional anti-dumping duty applicable to these goods. Please note that the prices used are not actual prices, but provided for illustrative purposes only.
Example 1
You have an invoice issued by Consolidated Wire Industries Ltd for importation of galvanised wire as follows:
| Item | Quantity (kg) | Rand/tonne | Total Rand |
|---|
| High Tensile wire HG 2.46mm | 20,000 | 5,600 | 112,000 |
| Medium Tensile wire HG 4.0mm | 40,000 | 4,500 | 180,000 |
The exchange rate at the date of importation is NZ$1 = ZAR4.93.
The producer is Consolidated Wire Industries (Pty) Ltd and the rates for this company therefore apply.
The rate for Consolidated Wire Industries (Pty) Ltd is 27%.
Total VFD is (112,000+180,000)/4.93= NZ$59,229.21
Duty is 27% of $59,229.21 = $15,991.89
Example 2
You have an invoice issued by a producer other than those specified (but not African Gabions (Pty) Ltd and Finmesa Investment Corporation) above for an importation of galvanised wire as follows:
| Description and Size Dimensions | Units | Quantity (kg) | FOB US$/Unit | Total US$ |
|---|
| Binding Wire Z 2.20 mm | 72 coils @ 25kg | 1,800 | $35.80 | $64,440 |
The exchange rate at the date of importation is 1NZ$ = US$0.46.
As the producer is not one that is specified above as having a specific ad valorem rate, the rate for other suppliers therefore applies.
The rate for other suppliers is 33%.
Total VFD is $64,440/0.46 = NZ$140,086.96.
Duty is 33% of $140,086.96 = $46,228.70
Notes
General
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.
Collection of Duties
The Dumping and Countervailing Duties Act requires that provisional anti-dumping duties be secured in accordance with sections 156 and 157 of the Customs and Excise Act 1996. The New Zealand Customs Service has set up its own internal procedures to secure any duties, which involves a deposit as security.
Further Information
Should you have any queries regarding the operation of the provisional anti-dumping duties described in these instructions please contact the Trade Remedies Group as shown below.
| Trade Remedies General Contacts | |
| Telephone: | 04-472 0030 |
| Facsimile: | 04-499 8508 |
| Email: | traderem@med.govt.nz |
| Postal Address: | Trade Remedies Group
Regulatory and Competition Policy Branch
Ministry of Economic Development
PO Box 1473
Wellington |
| Location: | Level 9
33 Bowen Street
Wellington |
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