Page 326 - MANUAL OF SOP

DETERMINATION OF NET EXPORT PRICE CHAPTER 12

LEGAL PROVISIONS

12.1. Under the Customs Tariff Act 1975, “Export Price” is defined in
Section 9A(b) as under:

(b) "export price", in relation to an article, means the price of the
article exported from the exporting country or territory and in cases
where there is no export price or where the export price is unreliable
because of association or a compensatory arrangement between the
exporter and the importer or a third party, the export price may be
constructed on the basis of the price at which the imported articles are
first resold to an independent buyer or if the article is not resold to an
independent buyer, or not resold in the condition as imported, on such
reasonable basis as may be determined in accordance with the rules
made under sub-section (6);
12.2. Annexure- I of the Rules, 1995 contains the principles governing
the determination of normal value, export price and margin of dumping for
each of the co-operating producer exporter, who have exported to India
during the POI. The relevant Para 5 and 6 of Annexure- I are as below:

5. The designated authority, while arriving at a constructed
export price, shall give due allowance for costs including
duties and taxes, incurred between importation and resale
and for profits.

6. (i) While arriving at margin of dumping, the designated
authority shall make a fair comparison between the export
price and the normal value. The comparison shall be made
at the same level of trade, normally at the ex-factory
level, and in respect of sales made at as nearly as possible

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