Page 349 - MANUAL OF SOP
P. 349
Manual of OP for Trade Remedy Investigations
(iv) As a matter of practice, all those sales which are not in the ordinary course
of trade for reasons other than price should also be removed even before
carrying out the OCT test.
(v) The team should assess the OCT keeping both figures – unit SP and unit COP
of the subject goods,at the same level of trade. This means the comparison
should at ex-factory to ex-factory cost or total cost to total selling price.
(vi) Sales at a loss is not the only factor for deciding whether sales are in the
ordinary course of trade or not. There may be sales transactions which are
not in the ordinary course of trade on account of factors such as:
(a) sales to affiliated parties that are not at arm’s length;
(b) sales where there is any consideration payable for or in respect of the
goods other than price; or
(c) sales where the price is influenced by other than commercial
relationship between the buyer, or an associate of the buyer, and
the seller, or an associate of the seller; or
(d) sales where there is a direct or indirect compensatory arrangement
whereby some part of the consideration shall be reimbursed or
adjusted; or
(e) sales where the merchandise is custom-produced according to
unusual product specifications;
(f) sales where the merchandise is sold at aberrational prices; or
(g) sales where the merchandise is sold pursuant to unusual terms of
sale.
(h) Sale price is artificially low.
Particular Market Situation
13.15.6 The term “particular market situation” as used in Rule 9A(1)(c)(ii) has
not been defined or explained in the Act or in the Rules. Therefore, the term should
be understood with reference to the given market situation only and not any other
factor. Such market situation can only be considered which are unique and do not
permit proper comparison. There could be conditions in the market which render
sales in that market not suitable for use in determining prices such a government
control over the prices, different price pattern, etc.
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