Page 228 - MANUAL OF SOP

Verification

(xxxv) Investigation Team should review products produced by the respondent
and its affiliates that are both inside and outside of the scope of the
proceeding. Team members should ask for a product code list covering
all products produced by the company as well as codes for larger product
groupings. Team members may then examine how this product coding
system is integrated into the accounting system. This procedure will provide
an understanding of what types of product-specific information is available.

(xxxvi) The company should explain how it segregates PUC from all other products
produced. Where applicable, team members should review the computer
program used to identify PUC.

(xxxvii) The investigation team should understand the production process and also
take the plant tour.
(xxxviii) During a plant tour, observe the flow of the product through the production
process, incoming raw materials, packaging of finished goods, shipping, etc.
If they are verifying cost-related elements, team members should identify
those areas where cost differences between grades/models may occur and
consider whether the production differences appear consistent with the
reported magnitude of cost differences. The team should feel free to talk
to factory personnel, especially in packing, shipping and inventory control.

Production Quantity
(xxxix) The investigation team should first verify the production quantity. It is
important because it constitutes the denominator in most or all of the
respondent’s calculations. As they would with a sales quantity verification,
team members should use financial statements, production records, and/or
inventory ledgers to verify the production quantity.

(xl) As regards domestic verifications in chemical industries, usually this
information can be found also in Excise Records/Returns filed with the
Pollution Board (Mostly in case of Chemical Industries needing Pollution
Board Approval). In some of the cases, it may be possible that the Pollution
Control Certificate may have been taken for higher quantity for future
expansion but installed capacity may be less. In such cases, appropriate
documents in its support may be collected.

(xli) Investigation Team should ensure that the production quantity they are
verifying refers to the product as sold. In some cases, a producer will

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