Argentina

   The cited WTO standards are applied. Decree 2121/94 is of supplementary application in this subject, as long as it does not contradict the Agreement's provisions.

Bolivia

   The constructed price of the like product shall be based on the cost of production.

   Cost of production shall take into account all fixed and variable costs relating to materials and manufacture, in the ordinary course of trade in the country of origin, plus a reasonable amount for administrative and selling costs, profits and other costs.

   The addition for profit shall not in general exceed the profit normally realized on sales of products of the same category in the domestic market of the country of origin. Bi-ministerial Decision, Art. 24.

Brazil

   For the purpose of calculating constructed value, costs will be calculated on the basis of records kept by the exporter or producer under investigation, provided that such records are in accordance with generally accepted accounting principles of the exporting country and reflect the costs associated with the production and sale of the product under consideration.

   It shall be considered available evidence on the proper allocation of costs, including that which is made available by the exporter or the producer in the course of the investigation provided that such allocations have been historically utilized by the exporter or producer, in particular in relation to establishing appropriate amortization and depreciation periods and allowances for capital expenditures and other development costs. (Dec.1602/96 - Art. 6.5 e 6.6).

   Appropriate adjustment shall be made for those non-recurring items of costs which benefit future and/or current production, or for circumstances in which costs during the period of investigation are affected by start-up operations, unless already reflected in the cost allocations discussed in the preceding paragraph.

   The adjustment made for start-up operations shall reflect the costs at the end of the start- up period or, if the start-up period extends beyond the period of investigation, the most recent costs which can reasonably be taken into account during the investigation. (Dec. 1602/95 - art. 6.7 e 6.8).

   For the purpose of calculating the constructed value, the amounts for administrative and selling costs and for profits shall be based on actual data pertaining to production and sales in the ordinary course of trade of the like product by the exporter or producer under investigation.

   When such amounts cannot be determined on this basis, the amounts may be determined on the basis of:

         (a) the actual amounts incurred and realized by the exporter or the producer in question in respect of production and sales in the domestic market of the exporting country of the same general category of products;

         (b) the weighted average of the actual amounts incurred or realized by other exporter or producers subject to investigation in respect of production and sales of the like product in the domestic market of the exporting country;

         (c) any other reasonable method, provided that the amount for profit so established shall not exceed the profit normally realized by other exporters or producers on sales of products of the same general category in the domestic market of the exporting country. (Dec. 1602/95 - Art. 6.9 e 6.10).

Canada

   Paragraph 97(1)(e) of the Special Import Measures Act (SIMA) provides authority for defining by regulation, cost of production, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits, for the purpose of constructed costs.

   In addition, paragraph 97(1)(e.1) provides authority to prescribe by regulation the manner of calculating cost of production and administrative, selling and all other costs with respect to goods.

   In this regard, the regulations provide as follows: cost of production means the aggregate of all costs that are:

         (i) attributable to, or in any manner related to, the production of goods, or

         (ii) directly attributable to the design or engineering of the goods; a reasonable amount for profits means (in hierarchy): (i) the weighted average profit made on sales by the exporter of like goods for use in the country of export; (ii) the weighted average profit made on sales by the exporter for use in the country of export of goods of the same general category as goods sold to the importer in Canada; (iii) the weighted average profit for sales of like goods made by other producers for use in the country of export; (iv) the weighted average profit for sales made by other producers of goods of the same general category as the goods sold to the importer in Canada for use in the country of export; (v) the weighted average profit for sales by the exporter of goods that are of the group or range of goods that is next largest to the goods referred to in (iv) above for use in the country of export; (vi) the weighted average profit for sales made by other producers of goods that are of the group or range of goods that is next largest to the category referred to in (iv) above for use in the country of export; a reasonable amount for administrative, selling, and all other costs means (in hierarchy) (i) an amount equal to the average of all administrative, selling, and other costs, including any costs for design and engineering not included in cost of production but reasonably attributable to the production and domestic sales of like goods, made by the exporter, that satisfy the greatest number of conditions for the determination of normal value as set out in paragraphs 15 (a) to (e) of the SIMA, taking into account subsection 16(1) of the Act which sets out the rules that are applicable if conditions identified in section 15 cannot be met, or (ii) an amount equal to all administrative, selling, and other costs, including the costs of any warranty against defect or guarantee of performance and any design and engineering costs that are not included in the cost of production but are reasonably attributable to the goods. Paragraph 16(2)(b) of the SIMA specifies that any sale of like goods by the exporter during a period of not less than six months shall be excluded from the normal value calculation where three separate conditions are met: i) the sale price is less than the per unit cost of the goods; ii) the volume of sales below per unit costs noted in (I) is 20 percent or greater of the volume of sales of like goods during the period of not less than 6 months or the average selling price of like goods is less than the average cost of the goods; and iii) the unit sale price is equal to or less than the average cost of all like goods sold during the period.

Chile

   Costs are normally calculated on the basis of records kept by the exporter or producer under investigation, provided that such records are kept in accordance with generally accepted accounting principles of the exporting country, and that they reflect fairly the costs of producing and marketing the product in question.

   The Commission will take into account any available evidence to demonstrate that costs have been properly attributed, including evidence submitted by the exporter or producer during the investigation, provided that such attributions are those traditionally used by the exporter or producer, in particular as regards the setting of appropriate amortization and depreciation periods and deductions for capital costs and other product development costs.

   Except where they are already reflected in the attribution of the costs referred to in this section, costs must be duly adjusted to take account of those portions of non-recurrent costs that are related to future and/or current production, or to take account of circumstances where costs relating to the period under investigation have been affected by start-up operations.

   The amounts for administrative, sales and general costs, and the amount for profits, are to be based on actual data related to production and sales of like goods in the normal course of trade, conducted by the exporter or the producer under investigation. Where such amounts cannot be determined on this basis, the following bases may be used:

         i) actual amounts spent and recovered by the exporter or the producer in question with respect to production and sales of the same general category of goods in the domestic market of the country of origin;

         ii) the weighted average of actual amounts spent and recovered by other exporters or producers that have been subject to investigation in relation to the production and sale of like goods in the domestic market of the country of origin;

         iii) any other reasonable method, provided that the amount for profits so determined does not exceed the profit normally earned by other exporters or producers from sales of products of the same general category in the domestic market of the country of origin. (Supreme Decree No. 16, Ministry of External Relations, published in the Diario Oficial on May 17, 1995).

Colombia

   Colombia observes the requirements of Article. 2.2.1 in the Agreement on Antidumping incorporated in Law 170 of 1994.

   There are not additional regulations.

Costa Rica

   Costs shall normally 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.

   Authorities shall consider all available evidence on the proper allocation of costs, including that which is made available by the exporter or the producer in the course of the investigation provided that such allocations have been historically utilized by the exporter or producer, in particular in relation to establishing appropriate amortization and depreciation periods and allowances for capital expenditures and other development costs.

   Unless already reflected in the cost allocations under this sub-paragraph, costs shall be adjusted appropriately for those non-recurring items of cost which benefit future and/or current production, or for circumstances in which costs during the period of investigation are affected by start-up operations.

   The amounts for administrative selling and any other costs and for profits shall be based on actual data pertaining to production and sales in the ordinary course of trade of the like product by the exporter or producer under investigation.

   When such amounts cannot be determined on this basis, the amounts may be determined on the basis of:

         (i) the actual amounts incurred and realized by the exporter or producer in question in respect of production and sales in the domestic market of the country of origin of the same general category of products;

         (ii) the weighted average of the actual amounts incurred and realized by other exporters or producers subject to investigation in respect of production and sales of the like product in the domestic market of the country of origin;

         (iii) any other reasonable method, provided that the amount for profit so established shall not exceed the profit normally realized by other exporters or producers on sales of products of the same general category in the domestic market of the country of origin.

Dominican Republic

Ecuador

El Salvador

   According to the criteria established by the WTO in applying the Central American Regulations on Unfair Trade Practices, the costs of production are normally calculated according to a base that reflects the reality of the exporter or the producer subject to investigation as long as this takes into account generally accepted accounting principles as are generally accepted in the exporting country and reflect, in a reasonable way the costs associated with production and sales of the product under consideration.

   The authorities may consider all elements, including those relating to information provided by the exporter or the producer during the course of the investigation, as long as the costs reported by such persons are accurate reflections of traditional costs.

   To effect the determination of a normal value applicable to a similar product, the authorities may adjust the estimates of the cost of production in the country of origin in a manner that is reasonable in order to take into account administrative costs, cost of sales and other normal matters.

   Information drawn from real transactions for similar products may also be considered as long as they are not the sole determining base.

   Information may be related to: costs and prices relative to the home market of the exporter or producer; costs and prices relative to the home market of other exporters or producers.

Guatemala

   According to the criteria established by the WTO in applying the Central American Regulations on Unfair Trade Practices, the costs of production are normally calculated according to a base that reflects the reality of the exporter or the producer subject to investigation as long as this takes into account generally accepted accounting principles as are generally accepted in the exporting country and reflect, in a reasonable way the costs associated with production and sales of the product under consideration.

   The authorities may consider all elements, including those relating to information provided by the exporter or the producer during the course of the investigation, as long as the costs reported by such persons are accurate reflections of traditional costs.

   To effect the determination of a normal value applicable to a similar product, the authorities may adjust the estimates of the cost of production in the country of origin in a manner that is reasonable in order to take into account administrative costs, cost of sales and other normal matters.

   Information drawn from real transactions for similar products may also be considered as long as they are not the sole determining base.

   Information may be related to: costs and prices relative to the home market of the exporter or producer; costs and prices relative to the home market of other exporters or producers.

Honduras

   According to the criteria established by the WTO in applying the Central American Regulations on Unfair Trade Practices, the costs of production are normally calculated according to a base that reflects the reality of the exporter or the producer subject to investigation as long as this takes into account generally accepted accounting principles as are generally accepted in the exporting country and reflect, in a reasonable way the costs associated with production and sales of the product under consideration.

   The authorities may consider all elements, including those relating to information provided by the exporter or the producer during the course of the investigation, as long as the costs reported by such persons are accurate reflections of traditional costs.

   To effect the determination of a normal value applicable to a similar product, the authorities may adjust the estimates of the cost of production in the country of origin in a manner that is reasonable in order to take into account administrative costs, cost of sales and other normal matters.

   Information drawn from real transactions for similar products may also be considered as long as they are not the sole determining base.

   Information may be related to: costs and prices relative to the home market of the exporter or producer; costs and prices relative to the home market of other exporters or producers.

Jamaica

Mexico

   Mexican regulations provide that "production costs, overheads and profit margins shall correspond to those obtained in the ordinary course of trade". (II/44).

   As a general rule, the profit margin shall not be greater than that ordinarily obtained in the sale of products of the same generic category in the country of origin. (II/46- XI).

   When the margin of price discrimination is estimated by type of product, the profit margin shall be estimated according to the weighted average profit margin for domestic sales used to establish normal values based on prices. (II/46-XI).

   If this method is not applicable because there is no normal value by class of goods determined on the basis of prices, the generic category shall be deemed to be the first category of goods, according to the accounting information systems of the enterprise, which contains the product under investigation and for which there are profit figures. (Id.).

   "When the accounting information available only reports profits at the corporate level, the profit margin for the subject merchandise shall be calculated by dividing the profits for all products of the enterprise, before direct taxation and distributions of the share of profits due to third parties, into the selling cost, in accordance with corporate data. The resulting average margin shall be multiplied by the selling costs specific to the subject merchandise to determine the profit attributable to such merchandise". (II/46-XI).

   The above methods "shall not be used when they result in a profit margin which does not reflect a long-term position, but a transitory effect or the economic situation . . .". (II/46-XI).

   Overheads shall be determined taking into account administration and sales, financial and other not directly attributable costs, including R&D and depreciation of assets not related to production. (II/46-II).

   Indirect costs and expenses shall be allocated proportionally to the product under investigation. The Ministry shall reconcile the available accounting information in order to verify that, when the proportion allocated to the product under investigation is added to the allocations determined for products not under investigation, each of the indirect costs and expenses is totally or partly absorbed. (II/46-III).

   With regard to overheads which cannot be directly allocated to the product under investigation, when the available accounting information allocates parts of such expenses at departmental level and part at corporate level, both headings are prorated to the product under investigation, preferably on the basis of selling costs. (II/46-IV).

Nicaragua

   According to the criteria established by the WTO in applying the Central American Regulations on Unfair Trade Practices, the costs of production are normally calculated according to a base that reflects the reality of the exporter or the producer subject to investigation as long as this takes into account generally accepted accounting principles as are generally accepted in the exporting country and reflect, in a reasonable way the costs associated with production and sales of the product under consideration.

   The authorities may consider all elements, including those relating to information provided by the exporter or the producer during the course of the investigation, as long as the costs reported by such persons are accurate reflections of traditional costs.

   To effect the determination of a normal value applicable to a similar product, the authorities may adjust the estimates of the cost of production in the country of origin in a manner that is reasonable in order to take into account administrative costs, cost of sales and other normal matters.

   Information drawn from real transactions for similar products may also be considered as long as they are not the sole determining base.

   Information may be related to: costs and prices relative to the home market of the exporter or producer; costs and prices relative to the home market of other exporters or producers.

Panama

Paraguay

Peru

Santa Lucia

Trinidad and Tobago

   If the normal value of goods exported or intended to be exported to Trinidad and Tobago cannot be determined because

         (1) an absence of sales that would be relevant for the purpose of determining a price;

         (2) the sales in the relevant market are not suitable for use in determining a price;

         (3) like goods are not sold in the ordinary course of trade in the home market for home consumption in the country of export in sales that are arm's length transactions by the exporter, then normal value is determined by the sum of an amount determined by the Ministers as the cost of production of the subject goods in the country of export. (Sec. 12(2) and 12(3)).

   This amount would include reasonable amount for administrative and selling costs, delivery charges, the rate of profit, and other charges incurred in the sale. (Sec. 12(3)(b)).

United States

   Commerce normally will calculate costs on the basis of records kept by the exporter or producer of the merchandise, provided such records are kept in accordance with generally accepted accounting principles of the exporting country and reasonably reflect the costs associated with the production and sale of the merchandise. Commerce will consider all available evidence submitted by the exporter on a timely basis regarding the proper allocation of costs.

   The exporter will be expected to demonstrate that it has historically utilized such allocations, particularly with regard to the establishment of appropriate amortization and depreciation periods and allowances for capital expenditures and other development costs.

   Commerce will adjust costs appropriately for those non-recurring costs that benefit current or future production, or both.

   In addition, Commerce will adjust costs appropriately for circumstances in which costs incurred during the time period covered by the investigation or review are affected by startup operations.

   As a general rule, Commerce will base amounts for profit and for selling, general, and administrative expenses on the actual amounts incurred and realized in connection with sales in the ordinary course of trade.

   If actual data are not available, U.S. law establishes alternative methods for calculating profit and selling, general, and administrative expenses:

         (1) actual amounts incurred or realized by the same producer on home market sales of the same producer on home market sales of the same general category of products;

         (2) the weighted-average of actual amounts incurred or realized by other investigated companies on home market products in the ordinary course of trade; or

         (3) any other reasonable method, provided that the amount for profit does not exceed the profit normally realized by other companies on home market sales of the same general category of products.

Uruguay

Venezuela

   The "constructed value" is the total of the following elements "related to the allegedly dumped good or a like good (1993 Regulations, Art. 12):

         1. Production costs, meaning the total of fixed and variable costs for the inputs utilized and the manufacturing process, in the ordinary course of trade in the country of origin, with a reasonable margin for selling, administrative and other general costs;

         2. A reasonable margin of profit, calculated in relation to the respective costs and earnings of the producer or exporter, for sales for profit other than associated persons in the country of origin or of export.

   If this information is not reliable or is insufficient, the Commission shall use "the production costs and the related profit of other producers or exporters in the country of origin or of export for sales for profit of a like good.

   If such information is still not sufficient, the value may be calculated on the basis of sales of other goods by the exporter or other manufacturers within the same economic sector in the country of origin or of export, or on any other reasonable basis determined by the Commission".