Understanding NME Dumping Margin Calculations: Pricing and Normal Values Explained

1. Sample Non Market-Economy (NME) Dumping Margin Calculation Compare U.S Price to Normal Value U.S. Price Normal Value Normal Value $110.00 U.S. Price $90.00 Difference Attributable to Dumping $20.00 Dumping Margin Difference Attributable to Dumping/U.S Price $20.00 / $90.00=22.22% = Note: For general information purposes only. When interpreting and applying the law, please refer to the Tariff Act of 1930, as amended, (19 U.S.C. 1671-1671h, 1673-1673h) and the related regulations in Title 19 of the Code of Federal Regulations.

2. Sample Non-Market (NME) U.S. Price Calculation “Starting Price” per unit in the U.S. Market Gross Price=$110.00 Less Discounts Discounts=$4.00 Less Rebates Rebates=$4.00 Less U.S. Movement Expenses Movement=$3.00 Adjusted U.S Price Less U.S. Insurance Expenses Insurance=$3.00 U.S. Price=$90.00 Less U.S. Brokerage Brokerage=$1.00 Less Foreign Inland Brokerage Expenses Brokerage=$1.00 Less Foreign Inland Movement Expenses Movement=$2.00 Less Foreign Inland Insurance Expenses Insurance=$2.00 Note: For general information purposes only. When interpreting and applying the law, please refer to the Tariff Act of 1930, as amended, (19 U.S.C. 1671-1671h, 1673-1673h) and the related regulations in Title 19 of the Code of Federal Regulations.

3. Normal Value Calculation for a Non Market-Economy (NME) Investigation Costs Calculated Using Surrogate Values Raw Material Costs=$60.00 Plus Labor Costs Calculated Using the Hourly Wage Rates Published Online Labor Costs=$5.00 Plus Surrogate Energy Costs Energy Costs=$10.00 Plus Surrogate Factory Overhead Overhead=10.00 Plus Surrogate Selling, General and Administrative Expenses SG&A Expenses=$15.00 Plus Surrogate Profit Expenses Profit Expenses=$5.00 Plus Packing Expenses Packing expenses=$5.00 Equals Normal Value Normal Value=$110.00 Note: For general information purposes only. When interpreting and applying the law, please refer to the Tariff Act of 1930, as amended, (19 U.S.C. 1671-1671h, 1673-1673h) and the related regulations in Title 19 of the Code of Federal Regulations.

4. Non Market-Economy (NME) Raw Material Cost Calculation Factors of Production Surrogate Value Movement Expense Raw Material Cost x + = Total quantity of material input required to produce one unit of the finished product. Per-unit price of the input obtained from a market economy country whose economy is similar to that of the NME and is a significant producer of the product being investigated. Estimated cost for the producer to transport the material input from various suppliers to the production facility. Note: For general information purposes only. When interpreting and applying the law, please refer to the Tariff Act of 1930, as amended, (19 U.S.C. 1671-1671h, 1673-1673h) and the related regulations in Title 19 of the Code of Federal Regulations.

5. Non Market-Economy (NME) Factor of Production Calculation (Calculated for each raw material input, energy input (e.g., electricity, natural gas or steam), packing material and labor hours) Total quantity of each material input consumed during the period of investigation in order to produce the product. Total quantity of the finished product produced during the same period. Factor of Production ÷ = Note: For general information purposes only. When interpreting and applying the law, please refer to the Tariff Act of 1930, as amended, (19 U.S.C. 1671-1671h, 1673-1673h) and the related regulations in Title 19 of the Code of Federal Regulations.