Page 348 - MANUAL OF SOP

Determination of Dumping Margin

if they are sold at a price which is not less than the cost of those goods such that
costs are recoverable within a reasonable period.

(i) For assessing whether transactions are made in the “ordinary course of
trade”, the following is to be examined for determination whether the sales
are made at a loss:

(a) Determination of the domestic cost to make and sell the subject
goods (see subsequent paragraphs for determination of cost to
make and sell (COP))
(b) Comparison of COP with the transaction wise domestic sales to
determine the volume of sales at loss,
(ii) Application of Ordinary Course of Trade Test (OCT Test): the steps mentioned
below are to be followed for application of OCT test:

(a) The basic documents for this test are Appendices 4A, 4B and 4C
in producer exporter’s QR pertaining to the Domestic Sales in the
Exporting Country and the COP of the producer exporter.
(b) All the workings should be done in the Excel Sheet and preserved for
records.
(c) At the first instant, the team should compare the transaction wise
per unit selling price (SP) with per unit COP of the subject goods for
the POI.

(d) If all the sales transactions are in profit or the profit making transactions
are more than 80% of the total volume sold in the domestic market,
then all the transactions are considered for determination of Normal
Value by computing a per unit weighted average of all the domestic
sales.

(e) If the volume of loss making transactions in 20% or more of the total
volumes old in the domestic market, then the team should discard all
the loss-making transactions from the sales listing given in Appendix-
4A, 4B and 4C leading to determination of the normal value.

(iii) In those cases where PCNs have been notified, 80:20 test is to be applied
again at PCN level.

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