Page 288 - MANUAL OF SOP

Determination of Non Injurious Price

9.6.40. In a situation where export quantities include some of the PCNs, which have
not been produced by the DI during the POI, then a Notional or Estimated NIP is to
be computed for those PCNs. This notional NIP of PCN is computed based on the
cost of the most similar PCN produced by the DI duly adjusted for the differences
on merit. This notional NIP is subsequently used for determination of injury margin
for that PCN.

JOINT PRODUCTS & BY-PRODUCTS
9.6.41. This is applicable in the industries where more than one product of equal
or differential importance is produced, either concurrently or during the production
of the main product. Joint products are the products which are produced
simultaneously, with the same raw material and process and have broadly equal
commercial importance whereas, by-products have relatively minor or nominal
12
commercial significance .
13
9.6.42. Joint costing is used when a business has a production process from which
final products are split off during a later stage of production. There is a separation
point called as a split-off point, from where the products are separated and
identified. At this stage, the products could either be sold directly or go for further
processing, to convert into a finished product. The amount incurred up to the split-
off point is termed as joint cost.

9.6.43. If the company has incurred any manufacturing costs prior to the split-off
point, it must allocate costs to the final products in compliance with both generally
accepted accounting principles/cost accounting principles. All costs incurred after
the split-off point, which are linked to a specific product should be charged to
that specific product. Beside the split-off point, there may also be one or more by-
products.

9.6.44. The by-product is a secondary product whose total sale value is relatively
minor in comparison with the sale value of the main product. However, relationships
between joint products and by-products change over time as technology and
markets change as under:

12 Final Findingsin Anti-Dumping Investigations concerning imports of Phenol originating in or exported from Japan
and Thailand ,F.N. 14/27/2009-DGAD dated October 08, 2010, wherein it was noted that Phenol and Acetone are
the joint products.
13 Final Findingsin Anti-Dumping Investigations concerning Caustic Soda originating in and exported from Saudi
Arabia and USA,F.N. 7/16/2017-DGAD dated August 01, 2018, wherein it was held that Chlorine and hydrogen are
by-products of little commercial value in the process of manufacture of Caustic Soda.

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