19 C.F.R. § 351.406
Calculation of normal value if sales are made at less than cost of production
(a) Introduction. In determining normal value, the Secretary may disregard sales of the foreign like product made at prices that are less than the cost of production of that product. However, such sales will be disregarded only if they are made within an extended period of time, in substantial quantities, and are not at prices which permit recovery of costs within a reasonable period of time. (See section 773(b) of the Act.) This section clarifies the meaning of the term “extended period of time” as used in the Act.
(b) Extended period of time. The “extended period of time” under section 773(b)(1)(A) of the Act normally will coincide with the period in which the sales under consideration for the determination of normal value were made.
Notes of Decisions
Cited in 3
cases, 2002–2014 · leading case: Nsk Ltd. v. United States, 346 F. Supp. 2d 1312 (Ct. Intl. Trade 2004).
Nsk Ltd. v. United States, 346 F. Supp. 2d 1312 (Ct. Intl. Trade 2004). “27,296, 27,412 (May 19, 1997), Asahi argue that the overall 20% below-cost determination has to be done on a foreign like product basis, as per 19 C.F.R. § 351.406 , and not a model-specific basis.”
Thai Plastic Bags Indus. Co. v. United States, 746 F.3d 1358 (Fed. Cir. 2014). “at 7339 (discussing proposed 19 C.F.R. § 351.406 ). Reliance on physical characteristics, because of its ability to promote consistency, is a predictable methodology that is administrable across all investigations and administrative reviews.”
Prodotti Alimentari Meridionali, S.R.L. v. United States, 2002 CIT 68 (Ct. Intl. Trade 2002). “11 19 CFR § 351.406 (b) states that “the extended period of time * * * normally will coincide with the period in which the sales under consideration of the determination of normal value were made.”
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