Page 223 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

members use a prepared worksheet as a verification exhibit, sample source
documents used to support the exhibit should be attached to that exhibit.
(xvii) An important issue in verification of cost details is the basis adopted for
allocation or apportionment of common expenses or joint costs. This is
very critical as any change in the basis of allocation may result in drastic
changes in cost figures. It needs to be ensured that the basis of allocation
is appropriate or reasonable. If more than one product is coming out of
any manufacturing process, where costs cannot be identified, it may be
more prudent to allocate costs on the basis of production value (sales value
of production during POI) or other reasonable basis instead of production
quantities or any other arbitrarily selected method. However, if all the
products emerging out of any process have almost similar value, production
quantity method could also be adopted.
(xviii) It is equally important that verification is carried out to confirm that no
relevant information/data was omitted in the application/response. In other
words, completeness of the submission should be verified with respect
to the reported cost details and sales transactions as well as charges and
adjustments.
(xix) Team members should keep in mind that their purpose is to verify all the
relevant facts pertaining to the case, including identifying any relevant
information that has not been reported.

(xx) The team members should conduct themselves in an impartial manner at all
times and avoid acceptance of hospitality offered by the parties.
(xxi) If the applicant’s/ respondent’s counsel or outside consultants are present
at verification, the officials and employees of the company should be
encouraged to participate in the verification process. It is essential that the
applicant’s/ respondent’s officials and employees be the direct sources of
information.
(xxii) Where the producer is exporting through other exporters and traders, who
have submitted a complete response and are willing to co-operate during
verification, such entities should preferably be invited at the producer’s
premises if they exist in the same city. The process of verification of
documents of such unrelated entities should be undertaken in the presence
of the producer so that cross verification can be done and any double
adjustments be avoided.

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