Page 350 - MANUAL OF SOP

Determination of Dumping Margin

Normal Value for Cooperative Producer Exporter
13.15.7 Once the eligibility tests have been passed, the normal value of the
cooperative producer exporters may be determined based on the eligible domestic
sales transactions.

13.15.8 The invoice prices are duly adjusted to arrive at ex-factory works price. The
producer exporters may claim adjustments relevant for fair comparison. The onus
of claiming and proving the validity of the additional claims of adjustments lies with
the producer exporter making such a claim.

13.15.9 In a case where Producer sells through a related trader to Unrelated
Customer, then the price paid by the Unrelated Customer should be considered as
selling price after due adjustments for SG&A and profits of the Trader to arrive at
the ex-factory price.

13.15.10 In case the producer(s) is a part of a group separate normal value for each
producer is to be determined and a weighted average of NV for the entire group is
then determined. There can be several scenarios as detailed below:

(i) In a case where all goods are being sold through a group entity, the normal
value shall be based on sale price to un-related customer by such related
trader.
(ii) If a producer(s) in the group sell directly in the domestic market and also
exports directly as well as sells through a related trader(group entity), in such
a case, the normal value shall be determined based on his direct domestic
sales to unrelated parties (as given in Appendix 4A) and also domestic sales
to unrelated parties by the related trader (Appendix 4C read with Appendix
4B). The sales are to be duly adjusted for profits & direct & indirect SG&A
expenses as per the evidence provided and verified.
(iii) In a case where a Group of Producers/producer exporter sells in the domestic
market through a related trader/group entity, who is like an extended arm
of the producer, then profit & indirect SGA expenses of the related trader
should not be reduced while arriving at the normal value provided it can
be demonstrated that the related trader is acting as a sales department for
the producer i.e. if producer is selling the product in domestic market solely
through said trader and the said trader also deals solely with the products
of the group entity. The logic behind this is that if producer would have set

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