Page 66 - MANUAL OF SOP

Puc & Like Article

Physical Similarity
3.46.1. Similarity of physical characteristics like size, shape, content, weight,
appearance, taste, grade, standards, age, strength, purity and chemical composition.
3.46.2. Verify whether the goods are classified under the same or matching tariff
classification.

Technical Substitutability:
3.46.3. Technical specifications/standards

3.46.4. Grades, purity, etc.

Commercial Substitutability
3.46.5. Commercial substitutability refers to attributes identifiable from following
market behavior:

(i) Are the goods directly competitive in the market? Do the goods compete in
the same market sector? Within this sector, how are the goods positioned?
e.g. Within a market sector, are the goods similarly positioned?;

(ii) What is the extent to which the end-user may (or can) switch between
the goods for reasons other than price? What is the extent to which
participants in the supply chain are willing to switch between the goods?
e.g. willingness of participants to switch between sources may suggest
commercial interchangeability;

(iii) How does price competition influence consumption? e.g. close price
competition may indicate product differentiation is not recognized by the
market;
(iv) Are the distribution channels same or similar?; and

(v) Is the packaging same or similar? What is the extent of the differences?
Does the packaging reveal a significant difference in the goods? Does the
packaging highlight a different sector of the market?
Functional Substitutability

3.46.6. Functional substitutability refers to attributes identifiable from end-use.
They may not by themselves establish ‘like goods’, but may provide support to the
assessment of physical & commercial substitutability. The DI will have a tendency
to make claims in this respect, and hence, these attributes must be examined
objectively:

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