Page 332 - Manual Of SOP

Determination of Net Export Price

exports to India by the respective Producer, then the responding producer
may be considered non-cooperative and the entire response is liable to be
rejected.

12.21. As a matter of general practice, an individual dumping margin is not
granted to non-producer intermediaries/trader exporter even when they have filed
an independent response.

12.22. The producer can export the subject good directly or through other
exporter(s). In each of the scenarios, the adjustments required to be made in the
export price, will be different. The exhaustive list of all possible adjustments is
mentioned in the paragraph below and the team has to select items of adjustment
based on actuals on case-to-case basis, after due verification.

12.23. In case the exports are through another exporter, then the team has two
options for computation of ex factory export price:

12.23.1 Take the final export price of the exporter/trader to unrelated Indian
customer and make all applicable adjustments as listed below (as per appendix
3A, 3B, 3C) and additionally also make adjustments on account of indirect SGA
expenses and of the exporter/trader (whether the exporter/trader is related or
unrelated) based on details given in Appendix 5&9 as well as profit/loss of the
exporter/trader based on appendix 5 & 9 of the EQR pertaining to PUC only, for
computation of ex-factory export price.

12.23.2 Alternatively, if it is established that the producer has exported through
an unrelated exporter, then take the sale price of the subject goods from producer
to first exporter and adjust for ex-factory expenses to arrive at NEP. In this case it
should be verified that the unrelated exporter should have made the exports at
profits. In case exporter has posted losses (as verified from appendix 5 & 9) then a
reasonable profit has to be deducted for computation of ex-factory export price.

12.24. In a case where the Producer exports to India through a related trader, who
is like an extended arm of the producer, then profit & indirect SGA expenses of
the related trader should not be reduced while arriving at the NEP, provided that it
can be demonstrated that the related trader is acting as a sales department for the
producer i.e. if the producer is selling the product in export market solely through
said trader. The logic behind this is that if producer would have set up a separate

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