Page 601 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

Nothing in Article 2.4 suggests that the fair comparison requirement
provides guidance with respect to the determination of the component
elements of the comparison to be made, that is, normal value and export
price. Indeed, itis clear that the requirement to make a fair comparison in
Article 2.4 logically presupposes that normal value and export price, the
elements to be compared, have already been established.”

24.58. In a WTO Dispute Argentina – Poultry Anti-Dumping Duties (DS-241), the
Panel rejected Brazil's claim that an investigation cannot be initiated based on an
application including only normal value data related to sales in one city.

"It is sufficient for an investigating authority to base its decision to
initiate on evidence concerning domestic sales in a major market of
the exporting country subject to the investigation, without necessarily
having data for sales throughout that country".

24.59. In a WTO Dispute US – OCTG (Korea) (DS488), the panel explained how the
low volume of sales are relevant for construction of normal value.
“Under Article 2.2, upon the identification of low-volume sales, an
investigating authority is required to either construct normal value or use
third-country export prices as normal value. Therefore, the identification
of low-volume sales serves as a trigger for an investigating authority to use
an alternative to the price of those sales for normal value determination
but not necessarily to exclude the components of the price pertaining to
those sales from that determination. If an investigating authority opts
to construct a normal value, nothing in Article 2.2 suggests that it is
required to, or may, exclude data derived from the rejected low-volume
sales from that construction.

Article 2.2.2 requires that only sales that are in the ordinary course of trade
be used as a basis for CV profit determination. Thus, only data from such
sales, even if in low volumes, can be used in constructing normal value.
Therefore, what is discarded for normal value determination under
Article 2.2 is the price of low-volume sales but what is accepted for
purposes of normal value construction under Article 2.2.2 is the amount
for profit and SG&A(selling, general and administrative costs) on those
low-volume sales that are in the ordinary course of trade.”

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