Page 296 - MANUAL OF SOP

Determination of Injury Margin

SIGNIFICANCE
10.3. Injury margin in the context of antidumping is the injury suffered by the
DI on account of dumped imports. Injury margin is calculated as the difference
between the Non-Injurious Price (NIP) of the DI and the landed value of imports of
the dumped goods. The duty levied up tot he injury margin is expected to be the
margin adequate to remove the injury of the DI on account of dumped imports.
The injury margin is important since it affects the quantum of duties to be finally
recommended by the Authority in view of the application of a lesser duty rule in
terms of Rule 4(1)(d)(i) of the AD Rules.

OPERATING PRACTICES
10.4. The injury margin (IM) is calculated by comparing the exporting producer’s
/ country’s landed value (LV) of exports with the non-injurious price (NIP) of the DI.
The resulting injury is expressed as a percentage of the Landed Value in order to
obtain a %injury margin.

IM = NIP-LV
% IM = (IM/LV) X 100

10.5. The methodology and principles for calculation of Non-Injurious Price are
provided in Chapter 9 of this Manual.
10.6. Landed Value for this purpose is calculated from the CIF price of imports of
the subject goods or assessable value under the Customs Act including applicable
duties of customs. CIF price includes all expenses incurred or due to be incurred
like insurance, inland freight in exporting country, ocean freight etc. Landing
charges used to be added to CIF @ 1%to arrive at an assessed value for imports
cleared till September 2017. However, presently the assessable value includes all
the applicable charges . The applicable basic customs duties and cess (except CVD,
2
SAD, and special duties) are added to the CIF price to arrive at the landed value.

10.7. A separate injury margin is calculated for each co-operating producer
exporter by comparing the DI’s NIP with the landed price of relevant imports from
such producer/exporter. In the case of product control numbers (‘PCN’), injury
margin is determined PCN wise and subsequently,the margin is consolidated
on the weighted average basis with relevant export quantities as the basis. A
separate common injury margin is also to be worked out for non-responding and

2 Customs notification No. 91/2017 dated 26.9.2017 and Customs Circular No. 39/2017 dated 26.9.2017

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