Page 360 - Manual Of SOP

Determination of Dumping Margin

13.18. In the case of producers/exporters from countries considered to be non-
market economy, the said producer exporter may claim that it functions under
market conditions. For establishing the same, the producer / exporter has to file
a separate supplementary Questionnaire Response seeking Market Economy
Treatment (MET). The MET Response has to be assessed and if satisfied, the data
can be accepted for determination of the Normal Value for that producer / exporter.
However, where the response is not satisfactory with respect to the MET claims
of the producer / exporter, the data of the said party may be discarded for NV
determination.

13.18.1 The Authority may follow one of three methodologies prescribed under
Rule 7 for determination of the normal value:

(i) On the basis of the price or constructed value in a market economy third
country;

(ii) On the basis of the price from such a third country to other countries,
including India;

(iii) Where the options listed above are not feasible, on the basis of “any other
reasonable basis”, including the price actually paid or payable in India for
the like product, duly adjusted if necessary, to include a reasonable profit
margin.
13.18.2 For application of first and second option mentioned above, a suitable
surrogate country may be selected to the extent the data is available and considered
reliable. However, it has inherent complexities with respect to selection of an
“appropriate third country” for comparison. If this method is relied upon, efforts
should be made to ensure that the country so selected is comparable in terms of
volume, pricing, status of development, etc.

13.18.3 For application of the third option mentioned above, i.e., “any other
reasonable basis”, the team should rely on the data of the DI for constructing
the normal value as suitable, including certain adjustments pertaining to the raw
material prices by taking the international raw material prices into consideration
and the inclusion of 5% profit, as considered practical. Where more than one
Indian domestic producers have submitted data, the constructed normal value, as
a matter of practice, should be based on the data of the most efficient domestic

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