Croxley Stationery wins Asian anti-dumping cases

17 October 2007

Croxley Stationery wins Asian anti-dumping cases

Croxley Stationery has won two anti-dumping proceedings against Asian exporters moving an assortment of stationery into the New Zealand market since 2003.

The Ministry of Economic Development’s Trade Rules and Remedies Group (MED) concluded in favour of Croxley Stationery in both cases following an extensive investigation in the first half of 2007.

MED concluded that the imports were causing ‘material injury’ to New Zealand’s domestic industry through price undercutting on diaries and on a range of school and commercial Certain Bound Stationery (CBS).

Duties will now be imposed on these Asian exporters, designed to offset the adverse effects on the local industry. These duties range from 5% to 164% for diaries and 3% to 73% for CBS. (The average on diaries from China and Malaysia is over 40%.)

Joe Naus, Managing Director of Croxley Stationery says the dumping activity has resulted in adverse affects on the business including inventory write offs, a loss of market share and a decline in production levels, sales volumes and gross profits.

“With well established market leading brands including Collins and Warwick in our stable, we welcome healthy competition, local or international; however dumping was clearly hindering our progress as New Zealand’s leading stationery manufacturer, as well as adversely affecting the wider local industry.”

Mr Naus adds that MED’s findings – and subsequent duties imposed - provide due protection of the local industry.

“We are very pleased with the outcome which protects New Zealand jobs and industry while maintaining the consistency and supply of great products that New Zealanders know and trust.

“The win is significant, not just for Croxley but for the wider New Zealand manufacturing industry too. It sends a clear signal to local importers of dumped goods that we will fight for the right to defend local businesses against unfair practices, job security of New Zealanders and to ensure a level playing field for all,” says Mr Naus.

MED’s dumping investigation involved extensive gathering of industry and trade data including detailed calculations of dumping margins to determine the level of adverse economic effects.

The Dumping and Countervailing Duties Act 1988 classifies dumping as the situation where the export price of goods imported into New Zealand is less than the normal value of the goods in the country of export.

Although dumping itself is not illegal, action can be taken if goods threaten to cause materially adverse effects on a domestic market.

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