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• NZCS Instructions TR800/D/00/8

• Trade Remedies

• Completed Investigations

• Dumping Investigations

• Washing Machines: Korea

Non-Confidential

TR800/D/00/8

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 (4 April 2001).

As 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 fully automatic washing machines with a dry linen capacity not exceeding 10kg, the capacity determined by standard AS/NZS2040.

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 listed 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 2 forms:

1. Non-injurious Free on Board amounts (referred to as NIFOB amounts), which has been set for LG, Samsung and Daewoo.
2. An ad valorem percentage of the declared value for duty of the goods, which have been set for "other" suppliers of washing machines from Korea.

There is a separate NIFOB rate for each of the 5 different categories, the categories being determined by the capacity of washing machines in kilograms. 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 washing machines 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 washing machine by which the NIFOB amount exceeds the declared value for duty.
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 washing machine it will be necessary to:

1. Establish the name of the Korean producer of the washing machine. 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 washing machines for other whiteware manufacturers so the brand name of the washing machine will not necessarily indicate who the producer is. For example, LG Electronics manufactures washing machines sold under the brand of "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 washing machine models fall within the description of the goods subject to duty. This will simply be a matter of establishing if the dry linen capacity of the washing machine is 10 kilograms or less. Note that the description of the goods subject to duty includes both top and front loading washing machines.

3. Establish the dry linen capacity of each model of washing machine in kilograms. All of the importers have advised that they use the standard referred to in the goods description (AS/NZS2040) to measure the dry linen capacity of washing machines, 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 washing machine and compare it to the NIFOB amounts for the suppliers listed above. If the VFD is less than the relevant NIFOB, duty is payable and is equal to the difference between the NIFOB and the VFD. For "other suppliers" apply the relevant percentage to calculate the amount of duty.

Rates of Duty

The NIFOB amounts ($NZ) established for the known suppliers and the 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. Note that the invoiced amounts used below are not actual prices and are used for the purposes of the examples only.

Example 1

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

The exchange rate at the date of importation is $NZ1 = $US0.43.

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

SW65ASP

The capacity of SW65ASP is 6.5kg, which falls in category 3.

Total VFD is $US12,500/0.43 = $NZ29,069.77

NIFOB for category 3 is $NZ616.98 x 50 = $NZ30,849.00

Since the VFD is lower than the NIFOB, the SW65ASP will attract a duty of: $NZ30,849.00 minus $NZ29,069.77 = $NZ1,779.23

SW55APP

The capacity of SW55APP is 5.5kg, which falls in category 2.

Total VFD is $US5,625/0.43 = $NZ13,081.40

NIFOB for category 2 is $NZ503.36 x 25 = $NZ12,584

Since the VFD is higher than the NIFOB, SW55APP does not attract any anti-dumping duty.

The total anti-dumping duty collected for this invoice would be = $NZ1,779.23(SW65ASP)+ $NZ0.00 (SW55APP) = $NZ1,779.23

Example 2

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

The exchange rate at the date of importation is $NZ1 = $US0.42.

The producer Axe Why Zee falls under the "other supplier" category, therefore, an ad valorem percentage rate is used to calculate the anti-dumping duty.

XYZ652

The capacity for XYZ652 is 6.5kg, which falls in category 3.

The rate of duty for category 3 is 68%.

Total VFD is $US23,040/0.42 = $NZ54,857.14

Duty is 68% of $54,857.14 = $NZ37,302.85

XYZ852

The capacity for XYZ852 is 8.5kg, which fall in category 5.

The rate of duty for category 5 is 70%

Total VFD is $US10,750/0.42 = $NZ25,595.24

Duty is 70% of $25,595.24 = $17,916.67

Total duty payable on this invoice is $NZ37,302.85 + $17,916.67 = $NZ55,219.52

Notes

General

An ALERT has been put in place for tariff item 8450.11.01 and Statistical Keys 02H, 05B, 07J and 11G for goods originating from Korea.

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.