NAM KIM STEEL JOINT STOCK COMPANY

Transcription

1 INVESTIGATION 249 ALLEGED DUMPING OF ZINC COATED (GALVANISED) STEEL EXPORTED FROM INDIA AND THE SOCIALIST REPUBLIC OF VIETNAM DUMPING MARGIN CALCULATION NAM KIM STEEL JOINT STOCK COMPANY THIS REPORT AND THE VIEWS OR RECOMMENDATIONS CONTAINED THEREIN WILL BE REVIEWED BY THE CASE MANAGEMENT TEAM AND MAY NOT REFLECT THE FINAL POSITION OF THE ANTI-DUMPING COMMISSION May 2015

2 1 BACKGROUND 1.1 Background On 11 July 2014, the Commissioner of the Anti-Dumping Commission published a notice announcing the initiation of an investigation into the alleged dumping of zinc coated (galvanised) steel (the goods) exported to Australia from India and the Socialist Republic of Vietnam. A full description of the goods is available in Anti-Dumping Notice (ADN) No. 2014/55. This ADN is available on the Anti-Dumping Commission s (the Commission s) website at Following initiation of the investigation, a search of the Australian Customs and Border Protection Service (ACBPS) import database indicated that Nam Kim Steel Joint Stock Company (Nam Kim) exported galvanised steel to Australia from Vietnam during the period 1 July 2013 to 30 June 2014 (the investigation period). The Commission notified Nam Kim of the initiation of the investigation, and sought its cooperation with the investigation through the completion of an Exporter Questionnaire regarding galvanised steel. Nam Kim submitted a response to the Exporter Questionnaire by the (extended) deadline of 25 August A non-confidential version of this response is available on the public record for this investigation Purpose of this report The purpose of this report is to make preliminary assessments, regarding: export price (Chapter 2 refers); normal value (Chapter 3 refers) ; and a dumping margin (Chapter 4 refers), using information submitted in the response to the Exporter Questionnaire. As there was no on-site verification completed of this response, the Commission has tested the data provided by Nam Kim for relevance and reliability by: comparing the preliminary export price to information contained in the ACBPS import database; and benchmarking key variables (such as costs, price and adjustments) to: o verified exporters in the current case; o other co-operating exporters not verified; and o other independent variables. 1 Refer Electronic Public Record 249/010. Investigation 249 Zinc Coated (Galvanised) Steel 2

3 Having regard to these tests for relevance and reliability, the dumping margin assessment team (referred to in this report as the assessment team) are satisfied that the information provided in Nam Kim s response to the Exporter Questionnaire can be relied upon for the purpose of assessing the dumping margin calculation. Investigation 249 Zinc Coated (Galvanised) Steel 3

4 2 EXPORT PRICE 2.1 Australian export sales In its response to the Exporter Questionnaire, Nam Kim provided a detailed spreadsheet listing its Australian export sales of galvanised steel during the investigation period on a line-by-line basis (referred to as the export sales listing). There were no rebates, discounts or commissions identified in this data. The assessment team has adopted the invoice date as the date of sale. Consistent with on-site verification for another co-operating Vietnamese exporter, the assessment team has considered that historical daily exchange rates would best establish the material terms of the sale of the exported goods. 2 Therefore the assessment team has used currency conversion rates for each invoice date for the exported goods from OANDA Corporation, 3 and updated the export sales listing to reflect this. In its response to the Exporter Questionnaire, Nam Kim stated it was not related to any of its Australian customers during the investigation period. 2.2 Export price preliminary assessment The assessment team considers that: Nam Kim is the exporter; the goods have been exported to Australia otherwise than by the importer; and purchases of the goods by the importer were arm s length transactions. In those instances where the goods have been purchased by the importer from the exporter, export price has been calculated using paragraph 269TAB(1)(a) of the Customs Act 1901 (the Act), 4 as the price paid by the importer less transport and other costs arising after exportation. In those instances where the goods have not been purchased by the importer from the exporter, export price has been calculated using paragraph 269TAB(1)(c), having regard to all the circumstances of the exportation. These calculations were also based on the price paid by the importer less transport and other costs arising after exportation. Details of the preliminary export price calculations are at Confidential Appendix 1. 2 Taking into account subsection 269TAF(1) of the Customs Act OANDA Corporation provides internet-based foreign exchange trading and currency information services. 4 References to any section, subsection or paragraph in this report relate to provisions of the Act, unless specifically stated otherwise. Investigation 249 Zinc Coated (Galvanised) Steel 4

5 3 NORMAL VALUE 3.1 Domestic sales In its response to the Exporter Questionnaire, Nam Kim provided a detailed spreadsheet listing of its domestic sales of galvanised steel during the investigation period on a line-by-line basis (referred to as the domestic sales listing). There were no rebates, discounts or commissions identified in this data. Having reviewed the documentation provided by Nam Kim, the assessment team considers that the goods manufactured for domestic consumption have characteristics closely resembling the goods exported to Australia and are therefore like goods in accordance with subsection 269T(1). As outlined at Section 2.1, the assessment team has adopted the invoice date as the date of sale. In its response to the Exporter Questionnaire, Nam Kim stated it was not related to any of its domestic customers during the investigation period. 3.2 Model matching For the purposes of model matching, the assessment team has taken into account grade, coating mass and base metal thickness (BMT). This is consistent with model matching undertaken for on-site verifications with other co-operating exporters. The assessment team has used the BMT ranges (A to G) consistent with the ranges used for on-site verifications. 3.3 Normal value preliminary assessment Further to subparagraph 269TAC(2)(a)(i), the assessment team has determined there is an absence of sales of like goods in the domestic market that would be relevant for the purpose of determining a price under subsection 269TAC(1). Where the conditions of subsection 269TAC(1) are not met, normal value may be determined by either a constructed value or prices for like goods exported to a third country. As there were no countries in the third country sales summary submitted by Nam Kim that had a volume of trade similar to exports to Australia, the normal value has been constructed under paragraph 269TAC(2)(c). To construct the normal value for each quarter, the assessment team has used: the weighted average cost to make for Australian export sales; 5 plus the weighted average cost to sell for domestic sales; 6 plus 5 Aggregate cost to make and sell data was provided by quarter, but not by individual model. 6 As above. Investigation 249 Zinc Coated (Galvanised) Steel 5

6 profit of %. 7 A summary of the preliminary constructed normal value calculation is at Confidential Appendix Adjustments to the normal value The assessment team considers that certain adjustments are necessary to ensure fair comparison of normal values with export prices. The following adjustments have been made in accordance with subsection 269TAC(9): Export inland transport Export packing Export handling Export wharfage Export clearance fees Export fumigation Export bank charges inland transport costs (noting there was no need to deduct an amount for domestic inland transport in this case). packing costs. handling costs. wharfage costs. clearance fee costs. fumigation costs. bank charges. Figure 1: adjustments made to ensure comparability of normal values to export prices The above adjustments were calculated as weighted averages (using the data in the export sales listing) and applied to the normal value. The assessment team s preliminary adjustment calculations are included in the constructed normal value calculation at Confidential Appendix 2. 7 Calculated by taking profit on (profitable) domestic sales, as a proportion of the cost to make and sell. Investigation 249 Zinc Coated (Galvanised) Steel 6

7 3.3.2 Adjustments that were not made to the normal value In Nam Kim s response to the Exporter Questionnaire, the company claimed adjustments in relation to: domestic credit; domestic inventory, sales and marketing; and reimbursement of VAT and import duty. The assessment team notes that no data or per tonne calculations were submitted with the response to the Exporter Questionnaire to enable these adjustments to be made. Further, in the case of domestic sales and marketing, the assessment team could not identify from the response to the Exporter Questionnaire any direct connection between the sales and marketing costs and the sale of galvanised steel, or any evidence that marketing expenditure is exclusive to galvanised steel products. As a result, sales and marketing costs are considered part of the general cost of doing business, which is not grounds for adjustment. Investigation 249 Zinc Coated (Galvanised) Steel 7

8 4 DUMPING MARGIN Dumping has been assessed by comparing quarterly weighted average export prices (at FOB terms) to corresponding quarterly normal values for the investigation period, in accordance with paragraph 269TACB(2)(a) of the Act. The weighted average product dumping margin for galvanised steel exported to Australia by Nam Kim for the investigation period is 7.81%. Details of the preliminary dumping margin calculations are at Confidential Appendix 3. Investigation 249 Zinc Coated (Galvanised) Steel 8

9 5 LIST OF APPENDICES Confidential Appendix 1 Confidential Appendix 2 Confidential Appendix 3 Export price summary Normal value summary Dumping margin summary Investigation 249 Zinc Coated (Galvanised) Steel 9