Page 347 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

complete and accepted by the Authority then the mandatory eligibility tests are
applied as detailed below:

Eligibility Tests
13.15.1 There are three basic tests to be applied for qualification of a response to
be accepted for determination of normal value:

(i) Low Volume of Sales or Sufficiency Test (5% test);

(ii) Sales in the Ordinary Course of Trade (80-20 test); and
(iii) Particular Market Situation.

Low Volume of Sales or Sufficiency Test

13.15.2 The test of low volume of sales, is conducted by calculating the total sales
made by the exporter in question to India during the POI 4.

13.15.3 For the purpose of assessing “low volume of sales”, the team is required to
consider the total volume of domestic sales by the relevant producer exporter and
if these domestic sales constitute 5% or more, of the sales to India in volume terms
for all the PCNs/grades/models taken together, then the same can be accepted for
the purpose of normal value determination. If the overall PUC sales in domestic
market are 5% or more of the total exports to India, it is assumed to have passed
the test.

13.15.4 In case there is low volume or insufficient (less than 5%) sales volume,
the eligibility test is “failed” and the Authority would be constrained to determine
the normal value based on comparable representative appropriate third country
export price or on cost to make and sell and reasonable profits. In such a case,
the principles discussed under the heading of Constructed Normal Value must be
considered.

Sales in the Ordinary Course of Trade
13.15.5 Once sufficiency test is passed, the team should carry out OCT test. The
subject goods or like articles are considered to be sold in ordinary course of trade

4 ADA states that, “sales of the like product destined for consumption in the domestic market of the exporting
country shall normally be considered a sufficient quantity for the determination of the normal value, if such sales
constitute 5 per cent or more of the sales of the product under consideration to the importing member, provided
that a lower ratio should be acceptable where the evidence demonstrates that domestic sales at such lower ratio are
nonetheless of sufficient magnitude to provide for a proper comparison.”

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