Page 333 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

sales department within its own producing company, then no such adjustment of
profit and indirect SGA expenses would have been made.

12.25. Adjustments for determination of NEP: For arriving at ex works NEP,
the starting price will either be the CIF (cost, insurance, and freight), C&F (cost &
freight) or FOB (free on board) price, as the case may be to the first independent
customer. The terms on which the subject goods are shipped or the amount which
is received by the producer or producer exporter is to be verified. An exhaustive list
of various adjustments which are to be made in EP for arriving at NEP (ex- factory
net export price) are given below. All the elements may or may not be present in
each case. Hence, adjustments will also be made after examining the actual facts
pertaining to the subject goods for each of the export transaction:

(i) Ocean freight(in case of CIF/CFR);
(ii) Overseas insurance(in case of CIF)
(iii) Handling charges in the country of origin/export
(iv) Inland freight in the country of origin/export
(v) Differential packing cost, if any

(vi) Port expenses in the country of origin/export
(vii) Inland handling charges in the country of origin/export
(viii) Inland insurance in the country of origin/export
(ix) Freight & forwarding charges in the country of origin/export
(x) Port charges
(xi) Credit costs - actual credit period should be considered from the date of
invoice to the customer to the actual date of receipt of payment

(xii) Bank charges
(xiii) Commission paid to the agents/distributors/indenting agents for the subject
goods
(xiv) Export incentives
(xv) Year-end rebates/ discounts
(xvi) Warranty and guarantee expenses, if any
(xvii) Export taxes, duties or other charges imposed by the exporting country
on the exportation of the subject goods provided delivery terms are duty
paid.
(xviii) Any selling expenses that the seller pays on behalf of the purchaser.

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