Page 364 - MANUAL OF SOP

DETERMINATION OF DuMPINg MARgINS CHAPTER 14

LEGAL PROVISIONS

14.1. Section 9A(1) of the Act provides as following:
“dumping” occurs when the export price is less than the normal
value. The “margin of dumping” or “dumping margin” is the
fair comparison between the export price and the normal value.
Irrespective of whether the duties are recommended on an ad
valorem basis or in specific terms, the Authority must necessarily
calculate the dumping margin in percentage terms in order to carry
out the de minimis test. All data for the calculation of dumping
margin should be only for the defined period of investigation .
1
14.2. Extract of Rule (6) of Annexure-1 to the Rules states that:
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 the same time. Due allowance shall
be made in each case, on its merits, for differences which affect
price comparability, including differences in conditions and terms
of sale, taxation, levels of trade, quantities, physical characteristics,
and any other differences which are demonstrated to affect price
comparability.

(ii) In the cases where export price is a constructed price, the
comparison shall be made only after establishing the normal value
at equivalent level of trade…

1 Please refer to Para XIV of Chapter 24 for WTO Jurisprudence.

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