Anti-dumping Duties On Sugar, Shoes Lifted

Anti-dumping duties on refined sugar and men's sports casual footwear imported from some European and Asian countries have been lifted, Enterprise and Commerce Minister Max Bradford anounced today.

Mr Bradford announced that anti-dumping duties on sugar from Belgium, Denmark, Germany, the Netherlands and Thailand had been terminated with effect from November 3, 1998.

Anti-dumping duties on men's sports casual footwear, excluding men's leather upper hiker-type boots, from China, Indonesia and Thailand, had also been lifted with effect from October 19, 1998, he said.

Approximately $75,000 of duty paid on imported footwear from these countries since October 19 last year would be returned to importers who requested a refund, he said.

Termination of the sugar anti-dumping duties follows the completion of a review by the Ministry of Commerce.

This found that there was no further need for anti-dumping duties to prevent material injury being caused to the New Zealand industry.

Anti-dumping duties were imposed on sugar from Thailand and Germany in November 1988 and on the same goods from Belgium, Denmark and the Netherlands in June 1989.

The review was carried out following a request by the New Zealand Sugar Company (NZSC) that the existing anti-dumping duties be continued beyond the expiry date of 3 November 1998.

NZSC had claimed that the expiry of the duties would lead to the recurrence of dumping and that it would suffer material injury as a consequence.

It did not request the continuation of anti-dumping duties on imported Malaysian sugar. These ceased to apply from 3 November 1998. Termination of the anti-dumping duties on imported men's sports casual footwear was made on the basisthat the New Zealand industry no longer produced sports casual footwear, except for leather upper hiker-type boots.

The review was carried out following an application by K. Dowson and Sons Ltd, a New Zealand importer.

For more information contact: Jeremy Kirk, Press Secretary, Max Bradford (04) 471-9836 or 025 424 565

Background

Review of Anti-Dumping Duty: Men's Sports Casual Footwear from China, Indonesia and Thailand

Anti-dumping duties were first imposed on certain men's footwear in September 1992 following an investigation by the Ministry of Commerce. At that time anti-dumping duties were imposed on footwear from China, Indonesia, Thailand, Taiwan and Korea. A subsequent review, completed in July 1996 found that there was a continued need for the imposition of anti-dumping duties on footwear from China, Indonesia and Thailand and the Normal Value (Value for Duty Equivalent) amounts used to assess anti-dumping duty were increased. In addition, as a result of the review, anti-dumping duties in respect of certain men's footwear from Korea and Taiwan were revoked because it was considered that the removal of those anti-dumping duties would not be likely to result in material injury.

In August 1998, K Dowson and Sons Ltd lodged a request with the Ministry of Commerce asking that anti-dumping duties for men's sports casual shoes from China, Indonesia and Thailand be terminated on the grounds that the New Zealand industry was no longer making like goods, and that the removal of the anti-dumping duty on those goods would therefore not cause injury to the industry. As a result of this request the Secretary of Commerce initiated a review of the imposition of anti-dumping duties on men's sports casual footwear from these countries on 19 October 1998.

The Ministry's Trade Remedies Group sought information from all parties known to have an interest in the anti-dumping duties and completed the review within the statutory period of 180 days. The review found that the continued imposition of anti-dumping duties on men's sports casual footwear (except leather upper hiker-type boots) was not necessary as the New Zealand industry no longer produced like goods. It also found that the continued imposition of anti-dumping duties on men's leather hiker-type boots was necessary to prevent the continuation or recurrence of material injury to the New Zealand industry producing this type of footwear. Consequently, the Secretary of Commerce recommended that the Minister for Enterprise and Commerce terminate the anti-dumping duties on men's sports casual footwear, except leather upper hiker-type boots.

It should be noted that this review covers men's sports casual footwear only and that certain types of other men's footwear from China, Indonesia and Thailand remain subject to anti-dumping duties.

Background

Review of Anti-Dumping Duty: Refined Sugar from Belgium, Denmark, Germany, the Netherlands and Thailand

Anti-dumping duties were first imposed on refined sugar in November 1988 following an investigation by the Customs Department. At that time the countries of origin affected were Malaysia, Thailand and Germany. A subsequent investigation by the Ministry of Commerce, to whom responsibility for the administration of New Zealand's dumping and countervailing legislation had passed in December 1988, resulted in the imposition of anti-dumping duties on refined sugar from Belgium, Denmark and the Netherlands in June 1989. Various reassessments of the anti-dumping duties have occurred and a full review in November 1993 found that there was a continued need for the imposition of anti-dumping duties.

The Dumping and Countervailing Duties Act 1988 provides that an anti-dumping duty may remain in force for no more than five years after being imposed or after completion of a reassessment following a review under the Act. If at the date of the 5 year "sunset" a review is underway, the anti-dumping duty may be continued pending the outcome of the review.

In this particular case, the anti-dumping duty was due to expire on 3 November 1998. In October 1998, NZSC lodged a request with the Ministry of Commerce for the review and continuation of anti-dumping duties in respect of Belgium, Denmark, Germany, the Netherlands and Thailand. NZSC claimed that the structure and administration of the sugar refining industries within the European Union and Thailand gave rise to a threat of imports into New Zealand at dumped prices which would in turn cause material injury to NZSC. NZSC is the sole producer of refined sugar in New Zealand. The information provided to the Ministry in the request was considered sufficient to warrant an investigation.

Due to a prior undertaking with the New Zealand Commerce Commission, NZSC did not request the review and continuation of anti-dumping duties in respect of Malaysia. These duties therefore ceased to be payable as from the "sunset" date of 3November 1998.

The Ministry's Trade Remedies Group sought information from all parties known to have an interest in the anti-dumping duties and completed the review within the statutory period of 180 days. The review found that no dumped imports of refined sugar from Belgium, Denmark, Germany, the Netherlands or Thailand had been made for a number of years and that such imports were neither clearly foreseen nor imminent. Consequently, the Secretary of Commerce recommended that the Minister for Enterprise and Commerce terminate the anti-dumping duties.