Page 365 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

… (iv) Subject to the provisions governing comparison in this paragraph,
the existence of margin of dumping during the investigation phase shall
normally be established on the basis of a comparison of a weighted average
normal value and export prices on a transaction-to-transaction basis. A
normal value established on a weighted average basis may be compared to
prices of individual export transactions if it is found that a pattern of export
prices which differ significantly among different purchasers, regions or time
periods, and if an explanation is provided as to why such differences cannot
be taken into account appropriately by the use of a weighted average-to-
weighted average or transaction-to-transaction comparison .
2
SIGNIFICANCE

14.3. The determination of dumping margin is critical for dumping/injury
assessment. The dumping margin is used in the application of lesser duty rule for
quantification of duty. Also,de minimis dumping margin will lead to termination
of an investigation against the concerned country and also a recommendation for
non-imposition of duty against the concerned producer exporter(s).

OPERATING PRACTICE
14.4. Dumping margin is determined by comparing the Normal Value (or the
Constructed Normal Value, as the case may be) with the Net Export Price of the
relevant responding co-operative producer exporters unless the response is not
complete or it is not being accepted for reasons to be mentioned clearly. The
calculation of NEP and NV has been explained in detail in the earlier chapter.
14.5. For the calculation of Dumping Margin, the Normal Value and Net Export
Price should be compared for sales made as nearly as possible at the same time.

14.6. In exceptional cases, if it is found that a pattern of export prices significantly
differs amongst different purchasers, regions or time periods, then the comparison
of daily/monthly/quarterly NV with export transactions for the respective period
3
may be undertaken .
14.7. The method for calculation of DM is generally weighted average method,
wherein the weighted average normal value is compared to the weighted average
net export price over the period of investigation. The weighted average method
2 Please refer to Para XIV of Chapter 24 for WTO Jurisprudence.
3 Please refer to Para XIV of Chapter 24 for WTO Jurisprudence

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