Page 289 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

(a) By-products may become more and more important, eventually becoming
joint products ;
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(b) When the relative importance of individual products changes, the products
need to be reclassified and the costing procedures need to be changed; and

(c) Physical unit method (if all products have broadly the same per unit value).
9.6.45. Most commonly used method for allocating joint costs is based on the
market-based data such as using revenues as a basis for allocation. There are two
methods that employ this approach:

(a) Sales value at the split-off method; and
(b) Net realizable value (NRV) method.

(c) Physical units method (if all products have same unit measurable and are
equally desirable and valuable).
9.6.46. The aforesaid methods require adding up of all the production costs up to
the split-off point, then determine the sales value/net realizable value of all joint
products as at the same split-off point, and then assign the costs appropriately. The
net realizable value method allocates joint costs on the basis of the final sale value
less the separable costs. If there are any by-products, do not allocate any costs to
them; instead, charge the proceeds from their sale against the cost of goods sold.
However, based on the merits of the case, the investigation team may use another
appropriate method also. Applicable cost accounting standard must be kept in
mind in this regard.

WEIGHTED AVERAGE NIP
9.6.47. As already stated above, the NIP is worked out plant wise for all the
constituents of DI. Thereafter, weighted average NIP is computed based on the
domestic production with respect to each plant after reducing export sales/captive
consumption, if any, from the production during the POI of the respective plant.
These weights are then used to compute the weighted average NIP of respective
constituents of DI. Finally, one NIP is calculated for the DI as a whole and this NIP is
used to determine injury margin.

14 Final Finding in Anti-Dumping Investigations concerning imports of Methylene chloride originating in or exported
from China P.R. and Russia F.N. 14/33/2014-DGAD dated March 30, 2016, wherein it was held that Methylene chloride
and chloroform are jointly produced and Carbon Tetrachloride comes out as a by- product. Since the production
facilities are common and the products arecoproduced, capacity utilization has been examined accordingly.

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