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• Washing Machines: Korea

NZCS Instructions

TR800/D/00/8

• Introduction
• Subject Goods
• Origin
• Provisional Measures
• Notes
• Further Information

Where any information in these instructions is considered to be confidential in terms of Sections 9(2)(b)(ii) and 9(2)(ba)(i) of the Official Information Act, it 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 washing machines (top and front loaders) from Korea was initiated on 12 December 2000. Following a request by the NZ industry the Minister of Commerce has imposed provisional anti-dumping duties effective from 4 April 2001.

The provisional anti-dumping duties have been imposed by the Minister to prevent material injury to the New Zealand industry during the remaining period of the investigation. The provisional anti-dumping duties 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 fully automatic washing machines with a dry linen capacity not exceeding 10kg, the capacity determined by standard AS/NZS2040

Country/Countries of Origin

Korea

Provisional Measures

Description

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 washing machines 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 dry linen capacity of washing machine in kilograms.

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 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 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 NZ$1 = US$0.43

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

The rate for SW65ASP is 70%

Total VFD is US$15,000/0.43	=	NZ$34,883.72
Duty is 70% of $34,883.72	=	$24,418.60

The rate for SW55APP is 93%

Total VFD is US$6,250/0.43	=	NZ$14,534.88
Duty is 93% of $14,534.88	=	$13,517.44

Total duty = $37,936.04

Example 2

You have an invoice issued by LG Electronics Inc. for an importation of washing machines 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 WFT652 is 65%.

Total VFD is US$23,040/0.42	=	NZ$54,857.14
Duty is 65% of $54,857.14	=	$35,657.14

The rate for WFT852 is 70%

Total VFD is US$10,750/0.42	=	NZ$25,595.24
Duty is 70% of $25,595.24	=	$17,916.67

The rate for WD8050FH is 79%

Total VFD is US$6,800/0.42	=	NZ$16,190.48
Duty is 79% of $16,190.48	=	$12,790.48

Total duty = $66,364.29

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.

Form of Provisional Measures

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

Further Information

Should you have any queries regarding the operation of the provisional measures described in these instructions please contact the Trade Remedies Group as shown below.

Contact for this Investigation:

Robin Hill
Direct Telephone: +64-(04)-470-2273
Email: robin.hill@med.govt

Trade Remedies General Contacts:

Telephone: +64-(04)-472-0030
Facsimile: +64-(04)-499-8508
Email: traderem@med.govt.nz

Postal Address:

Trade Remedies Group
Competition and Enterprise Branch
Ministry of Economic Development
Box 1473
WELLINGTON

Location:

Level 9
33 Bowen St
WELLINGTON