Dumping Calculations

• Countervailing
• Anti-Dumping Duty
• Interim Countervailing
• Interim Dumping
• Combined Interim Countervailing and Dumping Duty

Introduction

Dumping Duty / Countervailing

Dumping duty is payable when goods are being imported at a price that is lower than the normal value of the goods in the country of export.
Countervailing is when an overseas government is giving the company either a production subsidy or an export subsidy.

Definitions

Normal Value

is usually based of the price paid for like goods (to those on which a dumping action is initiated) that are sold in the domestic market of the country of export. It is one of the variable factors used in determining a dumping margin.

Non-Injurious FOB Price(NIFOB)/Non-Injurious Price (NIP)

under Customs legislation there is provision for final duty rates to be less than the dumping margin, if that rate is sufficient to remove the injury to the Australian industry. In determining what that rate is Customs must determine that non injurious price. Where the NIP is less than the normal value the lesser margin may be imposed. The NIFOB and/or NIP is another variable factor. NIFOBS refers to measures imposed before 1993 and NIPS to those imposed after Jan 1 1993.

Production/export subsidy

where an exporter is the recipient of a benefit or financial contribution from the government of the exporting country then that benefit is considered to be a subsidy and becomes countervailable under our legislative provisions. The production and export subsidy variables are two such benefits identified as a result of previous Customs investigations

Undertaking export price

as an alternative to imposing duties after an investigation the Minister may accept a written undertaking from an exporter to conduct future export trade to Australia at a price which will not cause injury to the Australian industry - this is known as a Price Undertaking.

Ascertained export price (AEP)

is the export price established by Customs after inquiries locally and overseas during the investigation. Customs examines all exports of the goods to Australia and makes deductions to these prices (where necessary) to reach the FOB level - the AEP is then compared with either the normal value and or NIFOB/NIP in order to determine what if any is the dumping margin. The AEP is the third of the variable factors ascertained during the investigation.

Non-injurious price (NIP)

see above

Dumping Security Amount

during the course of an investigation Customs may have established that dumping has occurred. In this case provisional dumping duties may be imposed on future exports. These provisional measures are taken in the form of securities.

Countervailing Security Amount

same as dumping security amount but refers to an investigation where a countervailable subsidy has been identified during an investigation.

Interim Dumping Duty (IDD)

these are the measures imposed at the completion of an investigation. The IDD amount payable represents the dumping margin ie. the difference between the AEP and the NV and or the NIFOB/NIP.

Interim Countervailing Duty

represents the amount of subsidy as identified in the investigation.

Import Declaration Line Data

The variables needed to calculate Countervailing Duty (CVD) are:

• Dumping Export Price (DXP) - Full amount input by user
• Quantity (QTY) - Full amount input by user
• Customs Value (VAL) - Full amount input by user

Reference Data

• Non-Injurious Free On Board Price (NIP) - Commercial-in-confidence unit price

• Countervailing Production Subsidy (CPS) - Commercial-in-confidence unit price

• Countervailing Export Subsidy (CXS) - Commercial-in-confidence unit price

• Normal Value (NMV) - Commercial-in-confidence unit price

• Dumping Export Price (DXP) - Full amount input by user

• Quantity (QTY) -Input by user

• Non-Injurious Price (NIP) - Commercial-in-confidence unit price

• Ascertained Export Price (AEP) - Commercial-in-confidence unit price

• Countervailling Subsidy (SUB) - Commercial-in-confidence unit price

• Ad Valorem Rate (AVR) - percentage figure

Countervailing

The variables needed to calculate Countervailing Duty (CVD) are:

• Non-Injurious Free On Board Price (NIP) - Commercial-in-confidence unit price

• Countervailing Production Subsidy (CPS) - Commercial-in-confidence unit price

• Countervailing Export Subsidy (CXS) - Commercial-in-confidence unit price

• Dumping Export Price (DXP) - Full amount input by user

• Quantity (QTY) - Input by user

NB: NIP, CPS and WS are in value per unit, however for the purposes of calculation they are used as gross values ie multiplied by the quantity.

Countervailing Duty is calculated as the difference between the Dumping Export Price and the Non-Injurious Free-On-Board Price up to the sum of Countervailing Production Subsidy and Countervailing Export Subsidy.

Anti-Dumping Duty

The variables needed to calculate Dumping Duty (DMP) are:

• Normal Value (NMV) - Commercial-in-confidence unit price

• Non-Injurious Free On Board Price (NIP) - Commercial-in-confidence unit price

• Dumping Export Price (DXP) - Full amount input by user

• Quantity (QTY) - Input by user

NB: NW and NIP are in value per unit, however for the purposes of calculation they are used as gross values ie multiplied by the quantity.

Duty Dumping is calculated as the amount Dumping Export Price is less than the lower of either the Normal Value or the Non-Injurious Free-On-Board Price.

Interim Countervailing Measures

The variables needed to calculate Interim Countervailing Duty and Countervailing Security Amount are:

• Non-Injurious Price (NIP) - Commercial-in-confidence unit price
• Ascertained Export Price (AEP) - Commercial-in-confidence unit price
• Countervailling Subsidy (SUB) - Commercial-in-confidence unit price
• Ad Valorem Rate (AVR) - percentage figure
• Dumping Export Price (DXP) - Full amount input by user
• Quantity (QTY) - Full amount input by user
• Customs Value (VAL) - Full amount input by user

Interim Countervailing Amount is calculated as the gross Countervailing Subsidy Amount plus any Ad Valorem amount if the gross Non-Injurious Price is zero or less than the gross Ascertained ExportPrice and Countervailing Subsidy Amount . Otherwise it if is the difference between the gross Non-lnjurious Price and the gross Ascertained Export Price . The Interim Countervailing Amoun t is either used as Countervailing Security Amount or Interim Dumping Duty.

Interim Dumping Measures

The variables needed to calculate Interim Dumping Duty and Dumping Security Amount are:

• Ascertained Export Price (AEP) - Commercial-in-confidence unit price

• Dumping Export Price (DXP) - Full amount input by user

• Quantity (QTY) - Full amount input by user

The Interim Dumping Amount is calculated using the greater of the gross Ascertained Export Price or the Dumping Export Price.

Explanation of above formulae in Trade Measures terms

If AEP > DXP
IDP = (AEP x IDP ad valorem rate) + IDP + AEP – DXP
Else
IDP amount = (DXP x ADP ad valorem rate) + IDP

Combined Interim Countervailing and Dumping Duty

Countervailing and dumping duties are calculated under the interim dumping measures. The dumping variables used to calculate the combined countervailing and dumping duties are:

• Normal Value
• Non-Injurious Price
• Ascertained Export Price

When countervailing and dumping duties are combined the Line Countervailing Duty Amount and Line Dumping Duty Amount must be calculated first. The Line Countervailing Duty Amount may be calculated from either pre 93 or Interim measuresThen if the Line Countervailing Duty Amount plus Line Dumping Duty Amount that has been calculated plus the dumping export price is higher than the lower of either, the normal value or non-injurious price then, the dumping duty must be recalculated to be lower. This is done by subtracting the Line Countervailing Duty Amount and Dumping Export Price from the lower of either, the normal value or non-injurious price.

V1.0 23 MAR 2004