Page 362 - MANUAL OF SOP

Determination of Dumping Margin

custom duty and other related expenses must be made to arrive at the cost
of said raw material in the country of export;
(iii) Conversion cost is taken from the most efficient producer in terms of
weighted average cost excluding profits;

(iv) A profit at the rate of 5% of the cost of production is also added as
normative return;
(v) Another adjustment, which may be considered is the cost of packing, to
arrive at same level as is sold by the producer exporter in their domestic
market and export market;
(vi) In case exported product are at 50% concentration/strength/potency, the
cost of production of the DI needs to be adjusted to be made comparable
with the goods of the producer exporter. The same will be true if the PUC
is of lesser concentration/strength and imports are comparatively of higher
concentration/strength;
(vii) Similarly, if there are differences in terms of sale like difference in credit
terms etc, the CNV also will have to be adjusted accordingly. However, if
credit cost has been adjusted in export price, no adjustment may be made
in constructed normal value;
(viii) It may be noted that CNV is worked out at ex-factory level. Therefore, other
adjustments done in the NV like VAT refund etc. are not to be done in case
of CNV.

DISCLOSURE OF NV TO THE RESPECTIVE PRODUCER

13.20. Rule 16 of the Rules provides that the designated authority shall, before
giving its final findings, inform all interested parties of the essential facts under
consideration which form the basis for its decision. Since the NV workings are one
of the essential facts based on data furnished by the respective producer, also
with workings, the finally computed NV should be disclosed to the respective co-
operative producer. This provides them an opportunity to submit their comments/
views on the disallowances/adjustments or the facts considered by the Authority in
determination of NV. Detailed procedure for disclosure is explained in the relevant
Chapter of this manual.

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