Page 469 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

protection which may be detrimental to the domestic user industry and not in the
overall interest of industrial growth. The practices of other regimes are not directly
relevant to that extent.

Reasonable interest rate on loans
19.32. As regards rates of interest paid by any company, it is very difficult to
suggest a reasonable rate of interest as these may vary significantly from company
to company based on the past track record of the respective company and its
promoters, profitability and brand name etc. Further, long term funds through
issue of bonds may be cheaper than the rate of interest paid to banks on working
capital loans. Similarly, funds raised in the foreign currency are generally cheaper.
However, these may involve the exchange risk or the hedging cost.

Merits in existing methodology

19.33. The existing methodology has been applied during the last almost 20 years,
perhaps with some exceptions. As stated earlier, the main merit of the existing
methodology is consistency and avoidance of any kind of arbitrariness.

19.34. It may be mentioned here that ideally, determination of sector wise/industry
wise Normal Return percentages as followed in the EU may need enormous database
which is reliable and updated. This may be difficult in the present scenario, where
reliable data is very difficult to get. Further, anti-dumping duties are generally for
subsets of product group, for which separate rates of return may not be available.

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