Page 352 - MANUAL OF SOP

Determination of Dumping Margin

13.15.13 Appendix 2 indicates the details of purchase and sale of PUC (traded
goods). These details should not be used for normal value determination as these
PUC are not manufactured by the said producer exporter and the cost to make and
sell will not cover these quantities. Traded goods exported by any producer are also
required to be disclosed in Appendix 3A, 3B and 3C.

COP for Cooperative Producer Exporter
13.15.14 COP is determined for domestic sales of PUC by each of the co-operative
producers in the country of export. If a company has domestic sales as well as
export sales and the cost is different in both kinds of sales, it may be preferable to
allocate costs to domestic sales of PUC and export sales of PUC separately. Income
from the export sales shall not be considered for COP workings.
13.15.15 COP should reasonably reflect the costs of production associated with
the like articles appearing in the books of account maintained by the producer /
exporter
13.15.16 COP has to be calculated on the basis of records kept by the exporter
or producer under investigation, provided that such records are in accordance
with the generally accepted accounting principles of the exporting country and
reasonably reflect the costs associated with the production and sale of the product
under consideration.
13.15.17 The team should consider all available evidence on the consistency and
reasonability of allocation of costs, particularly in relation to R&D Costs, amortisation
and depreciation and allowances for capital expenditures. The COP also includes
indirect selling, general and administrative expenses. No profit margin is added in
costs.
13.15.18 COP is worked out for domestic sales during POI and no optimization
is generally done. However, necessary adjustments may be required in case of
extraordinary situations.
13.15.19 The aim of the determination of COP is not to be a reflection of an “ideal
cost” or “suitable” cost. Rather, the COP should be such that it reflects the actual
cost of production for a specific producer exporter during POI. The cost cannot be
increased to notionally compensate for the subsidies provided by the exporting
country;
13.15.20 Where transactions with related parties have been reported with
regard to consumption of inputs/utilities/services etc., the team must examine if

329