Page 283 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

(dd) Sometimes, especially in case of those products where input cost or selling
prices are highly volatile, NIP may need to be worked out on the monthly
or quarterly basis. Since cost details may not be available month/quarter
wise, only variable input cost is changed based on the prevailing weighted
average cost price during that month/quarter. It may be seen that overall
month/quarter wise weighted average NIP for the POI as a whole should
reconcile with the overall NIP of the POI as a whole.

DISALLOWANCES
9.6.21. In addition to disallowances as specifically mentioned in Para (4)(vii) of the
Annexure-III, the following expenses are also not allowed for NIP workings as per
the practice:

(a) Commission/remuneration based on share in profits or turnover as paid to
the CMD or Directors of the company ;
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(b) Impact of revaluation of assets on transfer to/from subsidiary/ parent / joint
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venture / associate company ;
(c) CSR Expenses or expenses of this nature like local area development being
part of profits;

(d) Expenses related to Branch Office/Sales Depot. However, no income from
the branch office/sales depot shall be considered; and
(e) Expenses not related to domestic sales like export expenses.

BASIS OF ALLOCATION AND APPORTIONMENT
9.6.22. The basis of allocation adopted for allocation or apportionment of common
expenses or joint expenses is very critical for the NIP computations. The basis of
allocation should be as direct as possible and a reasonable one. The following issues
may merit consideration:

(a) It needs to be ensured that the basis of allocation is appropriate and justified;
(b) If more than one products are coming out of any manufacturing process,
where costs can’t be identified, it may be more prudent to allocate costs on
the basis of:
9 Final Findingsin Anti-dumping investigation concerning imports of Dioctyl Phthalate, originating in or exported from
Korea RP and Chinese Taipei, F No. 6/2/2017-DGAD dated April 27, 2018.
10 Final Finding in Sunset Reviewof Anti-dumping investigation concerning imports of Viscose Filament Yarn
originating in or exported from China PR, F. No. 15/16/2016-DGAD dated April 24, 2017.

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