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• Refrigerator-Freezers: Korea

NZCS Instructions

TR800/D/00/7

Contents

• Introduction
• Goods Subject to Anti-Dumping Duties
• Provisional Measures
• Notes
• Further Information

Information in these Instructions relating to anti-dumping duties which is considered to be confidential in terms of Sections 9(2)(b)(ii) and 9(2)(ba)(i) of the Official Information Act has been deleted and is indicated by shading and/or underlining. Requests for further information should be made to the Trade Remedies Group. Hard copies of these instructions are available from the Audit Officer in each NZCS office, the Policy Management Division of NZCS Head Office or direct from the Trade Remedies Group of the Ministry of Economic Development (contact details are given below).

Introduction

A dumping investigation into household refrigerator-freezers and refrigerators from Korea was initiated on 12 December 2000. Following a request by the New Zealand industry the Minister of Commerce has imposed provisional measures effective from 16 March 2001.

The provisional measures have been imposed by the Minister to prevent material injury to the New Zealand industry during the remaining period of the investigation. The provisional measures will cease to have effect when the Minister makes his final determination, which must be made no later than 10 June 2001. If final anti-dumping duties are imposed separate instructions will be issued.

Goods Subject to Anti-Dumping Duties

Description

The goods subject to provisional measures are:

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 60 litres, the capacities determined by standard AS/NZS4474.1997.

Country/Countries of Origin

The country of origin of the subject goods is Korea

Provisional Measures

Description

The provisional measures have been imposed as an ad valorem percentage of the declared value for duty of the goods.

Separate rates 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 rate for any other producers. There is also a separate rate for each of 5 different size ranges, the size being measured by the capacity of refrigerator in litres.

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 60 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. Establish the value for duty in New Zealand dollars for each model of refrigerator 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:

Examples

Below are examples of the calculation of the provisional measures 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 rate at the date of importation is NZ$1 = US$0.43.

The producer is Samsung Electronics and the rates for this company therefore apply.

The rate for SRGV39 is 39%.

Total VFD is 15,000/0.43	= NZ$34,883.72.
Duty is 39% of $34,883.72	= $13,604.65
The rate for SRGV33 is 26%.
Total VFD is $6,250/0.43	= NZ$14,534.88.
Duty is 26% of $14,534.88	= $3,779.07
Total duty	= $17,383.72

Example 2

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

The exchange rate at the date of importation is 1NZ$ = US$0.42.

The producer is LG Electronics and the rates for this company therefore apply.

The rate for N245C is 25%.

Total VFD is $14,000/0.42	= NZ$33,333.33.
Duty is 25% of $33,333.33	= $8,333.33

The GR267 is more than 500 litres and is therefore not subject to duty. It would also be exempt from duty on the basis that it is a side by side model.

The rate for GR131 is 71%.

Total VFD is $9,500/0.42	= NZ$22,619.05.
Duty is 71% of $22,619	=  $16,059.53
Total duty	=  $24,392.86

Notes

General

Form of Provisional Measures

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.

Form of Provisional Measures

The Dumping and Countervailing Duties Act 1988 requires that provisional anti-dumping duties be secured in accordance with sections 156 and 157 of the Customs and Excise Act 1996. The NZCS has set-up its own internal procedures to secure any duties, which involve a deposit as security.

Further Information

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