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• Hog Bristle Brushes: China

Non-Confidential

Instruction TR800/A/03/2

Contents

• 1. Introduction
• 2. Goods Subject to Anti-Dumping Duties
  • 2.1 Description
  • 2.2 Country/Countries of Origin
• 3. Anti-Dumping Duties
  • 3.1 Description
  • 3.2 Method
  • 3.3 Rates of Duty
  • 3.4 Examples
• 4. Notes
  • 4.1 Alert
  • 4.2 Goods Description
  • 4.3 Non-Standard Paintbrush Sizes
  • 4.4 Invoicing
• 5. FAQ Page
• 6. Further Information

1. Introduction

1. Anti-dumping duties were first imposed on these goods by the Minister of Customs on 31 May 1988.

2. The levels of duty were reassessed by the Minister of Commerce on 2 April 1992, 29 October 1997, and again to the current levels on 14 July 2003 following the completion of a review.

2. Goods Subject to Anti-Dumping Duties

2.1 Description

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

Hog bristle paintbrushes for household or industrial use*
*Note: This description includes hog bristle paintbrush heads

4. Refer to notes below for further comment.

2.2 Country/Countries of Origin

5. The country of origin of the subject goods is the People's Republic of China.

3. Anti-Dumping Duties

3.1 Description

The anti-dumping duties are in the form of Non-Injurious Free-On-Board (NIFOB)¹ amounts in New Zealand dollars and Normal Value (Value for Duty Equivalent) (NV(VFDE))² amounts in Chinese renminbi. Where exchange rate movements cause the NIFOB amount to exceed the NV(VFDE) amount the duty is based on the NV(VFDE) amount using the Alternative Rates.

6. NIFOB or NV(VFDE) amounts have been set for complete paintbrushes and paintbrush heads for different categories and sizes of paintbrushes and paintbrush heads.

3.2 Method

7. The amount of anti-dumping duty payable is the amount by which the NIFOB or NV(VFDE) amount exceeds the New Zealand value for duty when the goods are entered for home consumption (see examples in section 3.4 below).

8. The FOB invoiced amounts and NV(VFDE) amounts should be converted into New Zealand dollars at the Customs exchange rate at the date of import. Where a NIFOB amount applies, it should be converted to Chinese renminbi at the Customs exchange rate at the date of import to check whether it exceeds the alternative rate set in renminbi (if the NIFOB amount does exceed the alternative rate, then the alternative rate applies).

9. These goods are normally invoiced on an FOB basis. Where this is not the case please see notes below.

10. To establish the correct NIFOB or NV(VFDE) amount to be used the following information is required:

1. The brush size in millimeters (this should be shown in the invoice and is also normally stamped on the ferrule). Note that the size of the brush is determined by its width.
2. The volume of bristle of the brush.

Bristle Volume

11. The bristle volume is calculated by measuring (in millimeters):

• The width of bristle (taken at the top of the ferrule).
• The depth of the bristle at the top of the ferrule.
• The length of the bristle from the top of the ferrule to the tip of the brush.

12. The cubic volume of bristle in mm³ is then calculated by multiplying width x depth x length, e.g.

Treatment of Paintbrushes or Heads Falling within the Given Sizes

13. Using the size of the paintbrush or paintbrush head and the volume of bristle, the appropriate NIFOB or NV(VFDE) group can be selected from Table 1 below.

14. Once the appropriate group has been established the correct NIFOB or NV(VFDE) amount can be selected from Table 2 (complete paintbrushes) or Table 3 (paintbrush heads).

Treatment of Paintbrushes or Heads Falling Outside of the Given Sizes

15. The notes below provide information on the treatment of paintbrushes or paintbrush heads falling outside of the sizes shown in Table 1, Table 2 and Table 3 below. The Examples below also show how non-standard brush should be treated.

3.3 Rates of Duty

16. The majority of paintbrushes and paintbrush heads will fall within one of the following groups.

Table 1: Range of Cubic Volume of Bristle (mm³)

17. NIFOB and NV(VFDE) amounts (in Chinese renminbi and New Zealand dollars) are as follows:

Table 2: NIFOB and NV(VFDE) Amounts, Complete Paintbrushes

Table 3: NIFOB and NV(VFDE) Amounts, Paintbrush Heads

Notes to Table 2 and Table 3:

* NIFOB amounts in New Zealand dollars

** NV(VFDE) amounts in Chinese renminbi

*** Note: An alternative duty rate has been set at the NV(VFDE) rate which should be applied instead of the NIFOB rate where the NIFOB duty amount calculated exceeds the NV(VFDE) amount due to exchange rate fluctuations.

3.4 Examples

18. Below are examples of the calculation of the anti-dumping duty applicable to these goods.

An invoice shows four different types of hog bristle paintbrush as follows:

Exchange rates at date of importation are:

Step 1: Calculate Bristle Volume to Establish Relevant Group

Step 2: Establish NIFOB or NV(VFDE) Amounts

Step 3: Compare NIFOB and NV(VFDE) Amounts with NZ$VFD

Step 4 Calculate Anti-Dumping Duty Payable

4. Notes

4.1 Alert

19. An ALERT has been put in place for tariff items and statistical keys 9603.40.00 03B, 9603.40.00 05J and 9603.40.00 11C. This ALERT has been placed against all significant East Asian countries to check that the country of origin has not been misrepresented to evade duty.

4.2 Goods Description

20. A paintbrush head consists of bristles contained within a ferrule, i.e., it is essentially a paintbrush but without a handle.

21. Paintbrushes and paintbrush heads containing a mixture of hog and synthetic bristle are subject to the duty, regardless of the proportion that hog bristle represents of the total quantity of bristle.

22. A specialised paintbrush known as a "radiator brush" is not subject to anti-dumping duty. A radiator brush has a much longer handle than a normal paintbrush and is bent at an angle at the ferrule and is designed to be used in situations where space is limited or access to surfaces is obstructed. These brushes are normally described on the invoice as radiator brushes.

23. Paperhanging brushes are not subject to the anti-dumping duty. These brushes are used for smoothing out wallpaper and are usually made in sizes greater than 100mm. The larger sizes (200mm and above) usually do not have an extended handle like a normal paintbrush, the handle being broad (the same width as the brush) and flat. Care should be taken to ensure that brushes described as paperhanging brushes are not in fact paintbrushes, particularly if the brush is 100mm or less in size.

4.3 Non-Standard Paintbrush Sizes

24. Paintbrushes and paintbrush heads of less than 25mm should be assessed at the proportion of the relevant Group 1 rate that is equal to the proportion that the brush size represents of 25mm. These small brush sizes are assessed in relation to Group 1 only because the difference in the rates for 25mm brushes across Groups 1 to 3 is negligible. An example of this calculation is given in section 3.4 above (Super Brush 12mm).

25. For paintbrushes and paintbrush heads of sizes larger than 25mm and of a size other than those listed in Table 1, Table 2 and Table 3 above, the cubic volume of bristle for each of the three groups for that size should be calculated in accordance with the proportion that such a size represents of the nearest size listed in the tables above. When the appropriate group has been determined, the rate for relevant group of the nearest size should be selected. The brush is then assessed at the proportion of the relevant group rate that is equal to the proportion that the brush size represents of the nearest size. An example of this calculation is given in section 3.4 above (Super Brush 88mm).

4.4 Invoicing

26. 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 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

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

6. Further Information

28. 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:

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.