Page 465 - MANUAL OF SOP WITH COVER- 04.12.2018

Manual of OP for Trade Remedy Investigations

investigation rates to nullify injury, if any, caused to the domestic industry by
inefficient utilization of utilities;

19.20.3 The best utilizations of production capacities, over the past three years
period and the period of investigation, and at period of investigation rates to nullify
injury, if any, caused to the domestic industry by inefficient utilization of production
capacities.

19.21. As regards optimization, it may be added that the rate of anti-dumping
duty is fixed for the benefit of all the units manufacturing PUC in a country.
Therefore, normalization may be necessary to arrive at the reasonable costs of
the domestic units after excluding internal inefficiencies (non-dumping) affecting
the performance of any company. In other words, optimization as per Annexure-III
may be necessary to promote efficiency and generally there should not be much
variation in year to year average per unit raw material/utilities consumption unless
there is breakdown or closure of plant or change in technology or non-stabilization
of plant due to enhancement in capacity etc. Incidentally, it may be added here
that sometimes optimization is difficult especially in case of material retardation,
where previous year details are not available or if the actual capacity utilization is
very low during the entire injury period.

19.22. Interestingly, similar adjustments seem to be also followed in the
methodologies adopted by the Authorities in European Union also, while
determining the representative target price. The relevant extracts of para 8.3.3.1 of
EU Anti-Dumping Law and Practice by Edwin Vermulst are as under:
The costs of production of individual Community producers may vary widely.
In order to determine the costs of production of Community producers for
purposes of constructing the target price, the Community authorities have
sometimes used the cost of production of the most efficient Community
producer, or excluded certain of the least efficient producers. In other
cases, costs of a representative produceror the weighted average costs of
production of all Community producers were used. In EFMA, the CFI held
that:
The profit margin to be used when calculating the target price that will
remove the Injury in question must be limited to the profit margin which the

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