Calculation of dumping margins (1/3)

1. Dumping Margin = Normal Value – Export Price

Pursuant to 19 USCS §1677 35 (A), the margin of dumping is “the amount by which the normal value exceeds the export price or constructed export price of the subject merchandise.” The Export Price is the net U.S. price and the Normal Value is the net prices based on (1) Home Market, (2) Comparable Market, or (3) Constructed Value (cost of production plus a reasonable amount of administrative expenses as well as profits).

In order to determine the margin of dumping in an anti-dumping investigation, the Department of Commerce (the “DOC”), in general, compares the weighted average normal value to a weighted average export price (or constructed export price) for comparable merchandise, or it compares the normal values of individual transactions to the individual export prices (or constructed export prices) for comparable merchandise.

However, in case the DOC is convinced that a pricing pattern of export prices (or constructed export prices) of a merchandise is significantly different among different purchasers, regions, or time periods, comparison based on weighted average-to-weighted average methodology or the individual-to-individual methodology may not be appropriate, and in such case, the DOC may compare a weighted average normal value to individual export prices (or constructed export prices).

(To be continued…)