• Home
• International Trade
• Trade Remedies
• Completed Investigations
• Dumping Investigations
• Refrigerator-Freezers: Korea
• NZCS Instruction TR800/D/00/7

• Trade Remedies

• Completed Investigations

• Dumping Investigations

• Refrigerator-Freezers: Korea

Non-Confidential

TR800/D/00/7

June 2001

Contents

• Introduction
• Goods Subject to Anti-Dumping Duties
• Country of Origin
• List of Korean Suppliers/Exporters
• Anti-Dumping Duties
• Description
• Method
• Rates of Duty
• Examples
• Example 1
• Example 2
• Notes
• General
• Further Information

There is no confidential information in these instructions. Any queries concerning these instructions should be directed to Trade Remedies Group of the Ministry of the Economic Development. Contact details are given below.

Introduction

The final anti-dumping duties apply retrospectively from the date the provisional duties came into effect (16 March 2001).

As most of the final duties are lower than the provisional duties, it is possible that some provisional duty has been paid at a higher rate than the final duty. 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 may be refunded. Importers are not, however, required to pay additional duty if the final duty is higher than any provisional duty paid.

Goods Subject to Anti-Dumping Duties

Household type combined refrigerator-freezers fitted with separate top and bottom external doors or drawers up to and including a total gross volume of 500 litres and single door refrigerators with a total gross volume of not less than 80 litres, the capacities determined by standard AS/NZS4474.1997

Country of Origin

The country of origin to which the duties apply is Korea.

List of Korean Suppliers/Exporters

LG Electronics Inc (LG),
Samsung Electronics Co Limited (Samsung), and
Daewoo Electronics Co Limited (Daewoo)

Anti-Dumping Duties

Description

A reference price mechanism is used to impose anti-dumping duties for the suppliers above. A "residual" rate applies to any other suppliers. The anti-dumping duties imposed by the Minister and to which these instructions relate to 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. An ad valorem percentage of the declared value for duty of the goods.

A combination of NV(VFDE) and NIFOBS have been set for the 3 major Korean producers of refrigerator-freezers and refrigerators (referred to hereafter as "refrigerators") exporting to New Zealand and there is a residual ad valorem percentage rate for any other producers. There is also a separate rate for each of the 5 different categories, the categories being determined by the capacity of refrigerator in litres.

NV(VFDE) amounts have been established in category 3 for LG and in category 4 for LG, Samsung and Daewoo. A NIFOB amount has been established for the rest of the categories for LG, Samsung and Daewoo.

NV(VFDE) amounts are specified in Korean Won (KRW) and the NIFOB amounts are specified in New Zealand Dollars (NZD).

The amount of anti-dumping duty to be paid on demand in respect of each importation of refrigerator imported or intended to be imported into New Zealand from Korea is:

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

Method

For each importation of refrigerators it will be necessary to:

1. Establish the name of the Korean producer of the refrigerator. The producer normally invoices the importer directly so the name of the producer should be obvious from the invoice.

You should note that some Korean producers manufacture refrigerators for other whiteware manufacturers so the brand name of the refrigerator will not necessarily indicate who the producer is. For example, Samsung Electronics manufactures refrigerators sold under the brand of "Whirlpool" and LG Electronics manufactures refrigerators sold under the brand of "Simpson" and "Westinghouse". The name of the producer on the invoice would normally be definitive in establishing the identity of the producer for duty purposes.

2. Establish if the refrigerator models fall within the description of the goods subject to duty. Normally this will simply be a matter of establishing if the capacity of the refrigerator is within the range of 80 to 500 litres. There are a small number of refrigerators imported called "side by side" that are normally of large capacity and have 2 doors side by side, rather than top and bottom, and therefore do not fall within the description of the subject goods.

3. Establish the capacity of each model of refrigerator in litres. All of the importers have advised that they use the standard referred to in the goods description (AS/NZS4474.1997) to measure the capacity of refrigerators, so you should be able to use the capacity stated on the invoice to establish the size for duty purposes.

4. If the applicable amount is a NV (VFDE) amount, convert the NV (VFDE) amount to NZ dollars at the NZCS exchange rate applying at the date of import. Establish the value for duty in New Zealand dollars for each model of refrigerator and compare it to the NIFOB and NV (VFDE) amounts for the suppliers listed above. If the VFD is less than the relevant NIFOB or equal to the NV (VFDE) amount, duty is payable and is equal to the difference between the NIFOB or NV (VFDE) amount and the VFD. For "other suppliers" apply the relevant percentage rate to calculate the amount of duty.

Rates of Duty

The NIFOB and NV (VFDE) amounts established for the known suppliers (listed above) and ad valorem rates for "other suppliers" are as follows:

Examples

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

Example 1

You have an invoice issued by Samsung Electronics Co. Ltd for an importation of refrigerators as follows:

The exchange rates at the date of importation are $NZ1 = $US0.43 and $NZ1 = KRW534.02

The producer is Samsung Electronics and the NV(VFDE) and NIFOB amounts for this company therefore apply.

SRGV39

The SRGV39, which is 365 litres, falls into category 4.

The NV (VFDE) for category 4 Samsung is 377,856 won. For 50 refrigerators, the total amount in New Zealand dollars is therefore: (377,856/534.02) * 50 = $NZ35,378.45

VFD in New Zealand Dollars is $US15,000/0.43= $NZ34, 883.72

The total anti-dumping duty payable for the 50 SRGV39 is $35,378.45 minus $NZ34,883.72 = $NZ494.73

SRGV33

The NIFOB for category 3 Samsung is $NZ474.85. For 25 refrigerators the total amount is therefore: $NZ474.85 x 25 = $NZ11,875.25

VFD in New Zealand Dollars is 6,250/0.43 = $NZ14,534.88

There is no anti-dumping duty payable on SRGV33 as its total VFD is above the total NIFOB.

Total duty for this invoice is $NZ494.78 (SRGV39) + $NZ0.00 (SRGV33) = $NZ494.78

Example 2

You have an invoice issued by Axe Why Zee. Ltd for an importation of refrigerators as follows:

The exchange rate at the date of importation is $NZ1= $US0.44.

XYZ131

The capacity for XYZ is 319 Litres, which falls in category 4.

The rate of duty for category 4 is 49%.

Total VFD is $10,125/0.44 = $NZ23,011.36.

Duty is 49% of $23,011.36 = $11,275.57

XYZ030

The capacity for XYZ030 is 74 Litres, which does not fall into any of the categories above, therefore, does not attract any anti-dumping duty.

Notes

General

An ALERT has been put in place for tariff item 8418.10.00 and Statistical Keys 02C, 05H, 07D, 11B and 14G, and Tariff Item 8418.21.00 and Statistical Keys 01C, 03K, 05F, 07B and 12J for goods originating from Korea.

Further Information

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.