Washing Machines from Korea: Initiation Summary
[ Last Updated 26 January 2006 ]
Description of GoodsOriginImportant DatesReasons for InitiationFurther InformationType of Investigation:
Dumping
Description of Goods:
Household fully automatic washing machines with a dry linen capacity not exceeding 10kg, the capacity determined by standard AS/NZS2040.
Country of Origin:
Korea
Investigation "Milestones":
| Date of Initiation: | 12 December 2000 |
| Earliest date on which Provisional Measures may be imposed:* | 10 February 2001 |
| Latest date for release of Essential Facts and Conclusions:** | 11 May 2001 |
| Latest date for final determination by the Minister of Commerce: | 10 June 2001 |
* Provisional measures: (1) If, at any time after 60 days from the date on which an investigation has been initiated by the Secretary under section 10 of this Act (not being an investigation that has been terminated under section 11 of this Act), —
(a) The Minister has reasonable cause to believe, in relation to the importation or intended importation of goods into New Zealand that—
(i) The goods are being dumped or subsidised; and
(ii) By reason thereof material injury to an industry has been or is being caused or is threatened or the establishment of an industry has been or is being materially retarded; and
(b) The Minister is satisfied that action under this section is necessary to prevent material injury being caused during the period of investigation, —
the Minister may, by notice, give a provisional direction that payment of duty in respect of the goods shall be secured in accordance with Part IX of the Customs Act 1966, except that the rate or amount of duty to be secured shall not exceed the difference between the export price of the goods and their normal value, or the amount of the subsidy, as the case may be.
** Notice to parties to investigation—(1) Subject to subsection (2) of this section, within 150 days after the initiation of an investigation under section 10 of this Act, the Secretary shall give to the parties to the investigation referred to in section 9(b) of this Act written advice of the essential facts and conclusions that will likely form the basis for any final determination to be made under section 13 of this Act.
Summary of Factors Leading to Initiation:
Background
On 2 November 2000, the Ministry received an application from the only New Zealand manufacturer of washing machines, Fisher and Paykel Limited, alleging that imports of washing machines are being dumped and causing or threatening to cause material injury to the New Zealand washing machine industry.
Dumping
The information and evidence provided by Fisher and Paykel in its application shows indicative dumping margins of between 28 and 49 percent for the Samsung branded products examined and from 9 to 27 percent for the LG branded products examined. The Ministry considers that there is sufficient evidence of dumping to require initiation of an investigation
Material Injury
The Fisher and Paykel application contains information which shows the likelihood of material injury in the form of:
- increased import volumes
- price undercutting and price suppression, and
- a consequent decline in profits
The Ministry considers that there is sufficient evidence of material injury to require initiation of an investigation
Purpose of Investigation
The purpose of this investigation is to establish whether the subject goods are dumped, and if so, whether they are threatening to cause material injury to the New Zealand industry.
Further details on the reasons for initiation of this investigation are contained in the Initiation Report, which is available from this site.
Investigation Process:
Submissions and comments have been sought from parties known to have an interest in this matter, including importers and overseas suppliers. These submissions, together with the information provided by the New Zealand industry will be examined and analysed by the Investigating Team. The outcome of this examination and analysis will then be reported to the Minister of Commerce together with recommendations as to appropriate measures.
Should the examination, and where necessary, verification, of the information provided show that there is material injury or a threat of material injury as a result of dumping, the Minister of Commerce may direct the imposition of anti-dumping duties.
Further Information:
Any queries or requests for further information should be directed to the review team at the Trade Remedies Group on telephone +64-4-470-2273 (Robin Hill) or +64-4-470-2274 (Sanjay Bhawan) or facsimile +64-4-499 8508. Enquiries by e-mail should be directed to robin.hill@med.govt.nz or sanjay.bhawan@med.govt.nz
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