Page 367 - Manual Of SOP

Manual of OP for Trade Remedy Investigations

the domestic market, then NV may be constructed for such PCN on the basis of
COP of most similar PCN plus reasonable profit. Necessary adjustments are then
made for various differences in the product sold in their country. This is compliant
with WTO rules as all PCNs are like products and NIP is worked out based on best
available information.

14.13. The Anti-Dumping Rules do not mandate any particular methodology
for the dumping margin calculation for the residual category. The practice in the
Directorate is as follows:

14.13.1. In case there are co-operative exporters,the residual dumping margin is
determined by comparing the normal value, which is the highest of the co-operative
exporters, with the NEP which is the lowest of the co-operative exporters. While
working out the dumping margin in case of residual category, it may be ensured
that margin for “others” is higher than the highest margin determined for any
cooperating producer so that non-cooperation is not rewarded.
14.13.2. In case, there is only one co-operative responding exporter, its transaction
wise export data is considered for arriving at NEP for the residual category following
the same methodology as explained above.

14.13.3. In case no exporter has been declared co-operative or there is no response,
the residual dumping margin is determined by comparing the constructed normal
value with the net export price to be calculated from DGCI&S data as per aforesaid
methodology.

14.14. In case of PCNs, the dumping margin, whether positive or negative, shall be
worked out with respect to each PCN exported to India by the respective producer
exporter. Finally, Producer Exporter wise weighted average of all PCNs is worked
out to arrive at the figure of dumping margin with respect to each of the co-
operative producer exporter and residual category.

14.15. In determining the weighted average dumping margin for the Product
under Consideration as a whole, there should not be any “zeroing” of any negative
‘margins’ for a particular PCN/model/grade. In fact India does not have the provisions
4
under law or act providing for “zeroing” .

4 In this regard it may be noted that “Zeroing” has been held inconsistent with Article 2.4 and Article 2.4.2 of the AD
Agreement in the Appellate Body Report, European Communities – NTI-Dumping Duties on Imports of cotton-type
Bed Linen from India, 44-66, (WTO Doc No. WTO/DS141/AB/R) adopted on March 1, 2001; Appellate Body Report,
United States – Final Dumping Determination on Softwood Lumber from Canada,76-117 (WTO Doc No. WTO/
DS264/AB/R) adopted on August 11, 2004. The Appellate Body has held that zeroing fails to fully and duly account
for actual prices of export transaction that take place during a period of investigation and thereby result in inflated
dumping margin.
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