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• NZCS Instruction TR800/D/03/3

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• Completed Investigations

• Dumping Investigations

• Reinforcing Steel: Thailand

Non-Confidential

Instruction TR800/D/03/3

March 2004

Contents

• 1. Introduction
• 2. Goods Subject to Anti-Dumping Duties
  • 2.1 Description
  • 2.2 Country of Origin
• 3. Anti-Dumping Duties
  • 3.1 Description
  • 3.2 Method
  • 3.3 Rates of Duty
  • 3.4 Examples of Duty Calculation using Reference Prices
    • Example 1
    • Example 2
    • Example 3
• 4. Notes
  • 4.1 Alert
  • 4.2 Goods Description
  • 4.3 Invoicing
• 5. FAQ Page
• 6. Further Information

1. Introduction

1. The Minister of Commerce imposed anti-dumping duties on imports of reinforcing steel bar and coil (rebar) on 5 March 2004. The duty is payable from the day after the date of the Minister's decision, i.e., from 6 March 2004.

2. Goods Subject to Anti-Dumping Duties

2.1 Description

2. The goods subject to anti-dumping duties are:

Reinforcing steel bar and coil with a diameter equal to or greater than 5mm and less than or equal to 40mm

3. Refer to Notes below for further comment.

2.2 Country of Origin

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

3. Anti-Dumping Duties

3.1 Description

5. The duties are in the form of Non-Injurious Free-On-Board (NIFOB)¹ amounts in New Zealand dollars (NZ$) per tonne, Normal Value (Value for Duty Equivalent) (NV(VFDE))² amounts in Thai baht per tonne, and an ad valorem percentage. Where exchange rate movements cause the NIFOB amount to exceed the NV(VFDE) amount the duty is based on the NV(VFDE) amount using an Alternative Rate.

6. Where a reference price has not been set for imports from a particular exporter, an ad valorem percentage rate of duty applies. The ad valorem percentage rate is "capped" through the use of a NV(VFDE) amount.

3.2 Method

7. For the named exporters the amount of total duty payable is the amount by which the NIFOB or NV(VFDE) amount exceeds the New Zealand value for duty (VFD) when the goods are entered for home consumption (see examples in section 3.4 below). Where the VFD is greater than the NIFOB or NV(VFDE), no duty is payable.

8. In the case of the ad valorem percentage rates for "other" exporters, the maximum duty payable is determined by applying the percentage to the VFD. The percentage rate of duty is "capped" through the use of a NV(VFDE) amount, so duty payable using the relevant NV(VFDE) must be calculated and compared to the duty calculated through the application of the percentage rate. The duty payable is the lesser amount resulting from these two calculations.

9. In the case of duties for named exporters, the FOB invoiced amounts and NV(VFDE) amounts should be converted into NZ$ at the Customs exchange rate at the date of import. Where a NIFOB amount applies, it should be converted to Thai baht at the Customs exchange rate at the date of import to check whether it exceeds the alternative rate set in baht (if the NIFOB amount does exceed the alternative rate, then the alternative rate applies which should be converted to NZ$ and be used as the reference price).

10. These goods are normally invoiced on a FOB basis. Where this is not the case please see Notes below.

3.3 Rates of Duty

11. A NIFOB amount (in NZ$ per tonne), NV(VFDE) amounts (in Thai baht per tonne), and an ad valorem percentage rate of duty, along with the NV(VFDE) amount (in Thai baht) used to "cap" the ad valorem percentage rate, are as follows:

Table 1: Per Tonne Duty Rates

3.4 Examples of Duty Calculation using Reference Prices

12. Below are examples of the calculation of the anti-dumping duty applicable to these goods. Please note that the invoice values in the examples bear no relationship to actual values and have only been as a method illustration.

Example 1

You have an invoice issued by SCT Co. Ltd as follows:

The exchange rates at the date of importation are:

NZ$1 = US$0.70

NZ$1 = 27 Thai baht

The duty rate that applies is the difference between the NV(VFDE) amount for exports by SCT of xxxx baht (converted to NZ$ at the exchange rate at date of importation) and the invoiced amount.

1. xxxx baht/27 = NZ$xxxx

Convert invoice amounts to NZ$:

2. Duty payable is therefore:

Example 2

You have an invoice issued by Sanwa Pty Ltd as follows:

The exchange rates at the date of importation are:

NZ$1 = US$0.70

NZ$1 = 27 Thai baht

The duty rate that applies is the lower of the NIFOB amount for exports by Sanwa of NZ$xxxx and the alternative NV(VFDE) rate of xxxx baht.

1. xxxx baht/27 = NZ$xxxx

As the NV(VFDE) of NZ$xxxx is less than the NIFOB of NZ$xxxx, the alternative NV(VFDE) amount applies.

2. Convert invoice amounts to NZ$:

Duty payable is therefore:

Example 3

You have an invoice issued by Thai Big Bar Ltd as follows:

The exchange rates at the date of importation are:

NZ$1 = US$0.70

NZ$1 = 27 Thai baht

The duty that applies is the lower of the 13% ad valorem rate for "other" exporters, or the NV(VFDE) cap of xxxx baht.

1. Convert invoice amounts to NZ$:

2. Calculate ad valorem duty payable:

3. Check this against the NV(VFDE) cap.

Convert NV(VFDE) to NZ$:

xxxx/27 = NZ$xxxx

Maximum duty payable through the application of the duty cap is therefore:

4. The duty cap has not been exceeded, consequently the 13% rate applies and total duty payable is therefore $1,866.60.

4. Notes

4.1 Alert

13. In respect of imports from Thailand, an ALERT has been put in place for the following Tariff Items incorporating the Statistical Keys:

7213.10.90.01E, 7213.10.90.09L, 7213.91.90.01J, 7213.91.90.05A, 7213.91.90.09D, 7213.99.90.01E, 7213.99.90.5H, 7213.99.90.09L, 7214.20.90.01G, 7214.20.90.05K, 7214.99.90.01C, 7214.99.90.03K, 7214.99.90.11L, 7214.99.90.13G, 7214.99.90.21H, 7227.90.00.11B, 7227.90.00.19H, 7228.30.00.11J, 7228.30.00.19D, 7228.50.00.19A AND 7228.60.00.19E

4.2 Goods Description

14. Nearly all rebar contains surface deformations to increase the adhesion of concrete to the bar. However, rebar is also made without these deformations and such product still falls within the definition of the goods subject to duty. Most of the bar is imported in 6m, 9m and 12m lengths. Rebar is also available in the form of large coils which are straightened and cut to the required length by steel fabricators. Rebar in coil form is the same product as straight lengths of bar, differing only in being coiled.

15. Tariff items and statistical keys 7227.90.00 11B and 7228.30.00 11J have been included in the ALERT although they cover goods described as "wire rod". Tariff classification advice is that the goods subject to the duty can be classified under these items, as there is no definition in the Tariff of wire rod and this term could therefore include rebar. Particular attention will need to be paid to goods classified under these two items to determine whether they are wire rod or rebar of the type subject to anti-dumping duty.

4.3 Invoicing

16. If the invoice prices are not FOB, the FOB price for individual product lines can be calculated as follows:

1. Calculate the percentage of the invoice dollar total represented by the product line.
2. Apply this percentage to the foreign VFD shown on the entry to calculate the FOB applicable to the product line.

5. FAQ Page

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

6. Further Information

18. 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:

¹A NIFOB is a duty imposed at less than the margin of dumping and represents the FOB price at which imports would not cause injury to the New Zealand industry.

²A NV(VFDE) is a duty imposed at the full margin of dumping and represents the FOB price at which imports are not dumped.

³The alternative NV(VFDE) duty rate takes effect when exchange rates are such that the NV(VFDE) is lower than the NIFOB.