Dumping Allegation
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The allegation of sales in the United States at less than fair value, i.e., dumping, is the
thrust of any petition. The petition’s dumping allegation must contain "all factual information
(particularly documentary evidence) relevant to the calculation of the export price and/or the
constructed export price of the subject merchandise as well as the normal value of
the foreign like product." See the Department’s regulations at section 351.202.
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In reviewing a petition’s dumping allegation, the Department must establish the
"reasonableness" and "accuracy" of the price data used to establish the alleged less than
fair value sales. This analysis begins with a thorough review of all supporting
documentation for alleged prices and adjustments claimed.
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Petitioners can make a sales below cost allegation in the petition
(price in home market is lower than cost to produce subject merchandise) in which case, the
Department would separately evaluate this allegation. If the cost allegation is rejected at
the initiation stage, petitioners can make a new cost allegation during the course of the
investigation, subject to statutory time limits.
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In analyzing the petition’s alleged export price (EP) and/or constructed export price
(CEP), and normal value (NV), the Department looks to affirmatively answer the following questions:
| (i) |
Do alleged prices have adequate supporting documentation? |
| (ii) |
Do market research reports include affidavits referring to sources and how the information was obtained? |
| (iii) |
Is the price data used as the basis EP and/or CEP and NV contemporaneous with the period of investigation? |
| (iv) |
Is the price and cost data from contemporaneous time periods? |
| (v) |
Is the correct currency rate used for all conversions to U.S. dollars? |
| (vi) |
Are the appropriate conversion factors used for comparisons of differing units of measure? |
| (vii) |
Are values consistent across calculations, e.g., are input prices the same in both the constructed value and cost of production calculations? |
| (viii) |
If petitioners used their own factors of production to derive NV, were adjustments made for known production differences? |
| (ix) |
Are deductions from U.S. price conservative and consistent with the Department’s normal methodology? |
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A petitioner can obtain price and cost information from a myriad of sources, including
lost sale and call reports, affidavits, and market research reports. In reviewing affidavits
which attest to knowledge of actual prices, the Department requires, among other things,
that the affidavit clearly identify the source and explain the form in which the person
received the information, i.e., verbally via telephone or in person, or in writing.
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In addition to establishing the authenticity and accuracy of all source documentation, the
Department will also trace the data in the source documents to the petition’s U.S. price
and NV calculations.
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