WORLD TRADE  
ORGANIZATION  G/ADP/AHG/W/159 
25 March 2004 
 
 (04-1367) 
Committee on Anti-Dumping Practices 
Working Group on Implementation Original:   English 
 
 
 
ARTICLE 6.7 – CONDUCT OF VERIFICATIONS 
 
Paper by New Zealand  
 
 
 The following communication, dated 24 March 2004, is being circulated at the request of the Delegation of New Zealand.  
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Introduction 
 
 This paper explains how New Zealand cond ucts information verifications pursuant to 
Article 6.7 of the Anti-Dumping Agreement.  The responsibility for this task lies with the Trade 
Remedies Group of the Ministry of Economic Devel opment which is the Administering Authority in 
New Zealand.  New Zealand endeavours to verify a ll substantial information that is provided to the 
administering authority during the course of an investigation.    There are no verification provisions or instru ctions in the New Zealand legislation (the 
Dumping and Countervailing Duties Act).  New Zealand has developed its systems by observing the 
practice of other administrations and interpreting the provisions of the Agreement, particularly 
Articles 6.6, 6.7, 6.9 and Annex I.   
Purpose of Verification 
  There are three main purposes for conducting ve rification visits.  First, it allows the 
administering authority to be sure that the info rmation provided in questionnaire responses is accurate 
and that there is no misinterpretation of the data.  Second, it provides a record of the verified facts to 
the provider of the information and ensures that ther e is a transparent process.  Third, it demonstrates 
the transparency of the process to other interested parties. 
 
Procedure 
 
 The Trade Remedies Group identifies all know n exporters and importe rs of the goods under 
investigation (the subject goods).  Each party is sent an appropriate questionnaire with a letter seeking 
that party's participation in the investigation a nd the consequences (the use of best information 
available) if they do not wish to participate.  Wh ere there is a large number of exporters a sample can 
be selected.  In cases where this is required the exporte rs are ranked in order on the basis of volume of 
exports to New Zealand and those exporters exporting the majority of exports are selected.  Typically 
two or three exporters represent approximately 90 pe r cent of the volume of imports arriving in New 
Zealand.  If a sample is used, exporters not selected  in the sample are advised via their local business 
association or their official representative in New Zealand.   
 G/ADP/AHG/W/159 
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  On receipt of the responses to the questionnair es they are analysed and verification visits 
scheduled, providing that the firm being visited has agreed that verification can take place.  Generally 
only exporters that have provided a substantive res ponse to a questionnaire are visited.  A verification 
brief is then prepared and forwarded to the company.  The brief typically covers: 
 
- the agenda for an on-the-spot verification; 
- any specific questions that have been  identified from the analysis of the 
questionnaire response; 
- the areas where source documents will be required; 
- where additional information to that provided in the questionnaire response 
will be sought; and  
- seek the availability of company staff and records required.   
 At the verification visit a schedule of imports identified from other sources (e.g. import 
statistics) is discussed with the exporter to ensure  all shipments are accounted for.  The brief also 
confirms the purpose of the verification, confiden tiality procedures, the time, place and officers 
undertaking the visit (usually 2 persons).  A separ ate letter is also sent to the government of the 
country involved advising them of the de tails of the visits being undertaken. 
  A verification visit usually takes 2-3 days depend ing on the complexity of the issues, but it is 
also important that a balance is achieved between  ensuring that the information provided is accurate 
and the company concerned does not have its normal business interrupted unduly.   
 
 Once the case officers return to New Zealand, a Verification Report is prepared.  This covers 
all aspects of the visit and is given to parties for checking, correction of factual errors and any 
comments that they may have.  The Verification Report is then finalised and is placed on the 
investigation file and a non-confid ential version is placed on the Public File.  A Table of Contents 
from a recent Verification Report is provided as an appendix to this paper for Members information. 
  A similar process is conducted for other inter ested parties such as the New Zealand industry 
and where required, New Zealand importers of the subject goods. 
 
Summary  
 
 New Zealand believes that the verification process ensures both the accuracy and quality of 
the information used in an investigation.  The re porting of findings adds to the transparency of an 
administering authority's practices.  It also provid es companies with a chance to  meet face to face with 
investigators and provide their companies persp ective of the issues that are involved.  The 
administering authority can also explain systems and practices that parties experiencing a dumping 
case for the first time are not aware of.     G/ADP/AHG/W/159 
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 APPENDIX 1 
 
 
TABLE OF CONTENTS 
Page  
ABBREVIATIONS.................................................................................................................. ..............1 
 1. COMPANY
 DETAILS ...............................................................................................................2 
1.1 Verificati on Visit ......................................................................................................... ..............2 
1.2 Description of Company..................................................................................................... ......3 
1.3 Product De scription........................................................................................................ ..........4 
1.4 Exchange Rates ............................................................................................................. ............5 
1.5 Units of Measurement....................................................................................................... ........6 
1.6 The Period of Investigation................................................................................................ ......6 
2. EXPORT  DETAILS ...................................................................................................................7 
2.1 Export Sales Distribution.................................................................................................. .......7 
2.2 Level of Trade ............................................................................................................. ..............8 
2.3 Differences in Goods Manufactured for Export to New Zealand.........................................9 
2.4 Date of Sale............................................................................................................... ...............11 
2.5 Export Volumes............................................................................................................. ..........12 
2.6 Export Prices .............................................................................................................. .............13 
2.7 Other Expo rt Costs......................................................................................................... ........19 
2.8 Export Price Calculation................................................................................................... .....20 
3. NORMAL  VALUE...................................................................................................................21 
3.1 Domestic Sales Distribution ................................................................................................ ...21 
3.2 Government Price Controls .................................................................................................. .22 
3.3 Domestic Sales Volume...................................................................................................... .....25 
3.4 Selection of Dome stic Customers...........................................................................................2 5 
3.5 Base Prices ................................................................................................................ ...............26 
3.6 Adjustments................................................................................................................ .............27 
3.7 Cost of Production, Selling and Administration Costs and Profit......................................29 3.8 Sales at  a Loss............................................................................................................ ..............30 
3.9 Normal Value Calculations .................................................................................................. ..32 
4. DUMPING
 MARGINS  AND  VOLUMES ...............................................................................32 
4.1 Definition of Dumping ...................................................................................................... ......32 
4.2 Margins.................................................................................................................... ................32 
4.3 Volumes.................................................................................................................... ................32 G/ADP/AHG/W/159 
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 5. THREAT
 OF INJURY..............................................................................................................33 
5.1 Capacity of Exporter ....................................................................................................... .......33 
6. MATTERS  RAISED  DURING  THE  VISIT.............................................................................34 
7. DOCUMENTS  UPLIFTED......................................................................................................35 
 
Appendix 1 
Detailed Line-by-Line Dumping Spreadsheet Calculations  
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