In an anti dumping investigation the investigating authorities are required to determine ‘Export Price’ of the product under investigation which is being dumped in order to determine the dumping margin.
“Export price is the price actually paid or payable for goods sold for export, net of all taxes, discounts and rebates actually granted and directly related to that sale” The export price is evaluated at the ex‐factory level. To arrive at the ex factory export price, authority usually adjusts the export price for payment terms; inland freight, export taxes, ocean freight and insurance where applicable.
Type of Export Price‐
1. Actual Export price‐ A price actually paid or payable for the product when sold for export to the importing country.
2. Constructed Export Price ‐ Export price would be constructed where there is no export price available or the export price is unreliable. Export price can be constructed in any of the following manner:
a) On the basis of the price at which the imported products are first resold to an independent buyer; and
b) If the products are not resold to an independent buyer or not resold in the condition as imported, on a reasonable basis.
Determination of export price‐ Export price is determined in two ways.
a) For responding exporter the export price may be determined on the basis of questionnaire responses filed by the exporters.
b) For non responding exporters the export price may be determined as per facts available, or the data received from data compiling agencies, DGCI&S and co‐operative exporters is typically collated and adopted for the purposes.
Price adjustment‐ The Agreement requires that a fair comparison of the export price be made with the normal value. The basic requirements for a fair comparison are that the prices being compared are those of sales made at the same level of trade, normally the ex‐factory level, and of sales made at as nearly as possible the same time.
The authorities typically undertake in‐depth analysis and verification of export price. In case of cooperating exporters, the authority requires the responding exporters to provide information relating to exports made to India in prescribed form and manner, which are generally prescribed in the questionnaire.
Use of export price for injury determination‐ Export price is used for quantification of injury. Typically, the landed price is determined on the basis of the export price considering CIF price and applicable duties of customs. This landed price is compared with selling price of the domestic industry to determine price undercutting. Further, the landed price of imports is compared with the non injurious price or target price of the domestic industry to determine the injury margin.
In order to determine whether or not dumping has taken place, the normal value is compared with the export price. Thus, export price determination is one of the key determinations in an anti dumping investigation. For correct calculation of dumping margin, the authority need to accurately establish export price. Without correct export price determination, dumping margin determined may be flawed. Further, the information on import volumes and import price is also critical for injury determination.
Ms. Manisha Sharma, (Costing)
©Forum for Trade Remedies™ 2016