Section 8: Sales below cost

8. Sales below cost (1) (a) The Investigating Authority may treat any sale of the like product in the domestic market of the exporting country, or sales to a third country at prices below unit cost of production including administrative, selling and general costs as not being in the ordinary course of trade by reason of price. (b) For the purposes of paragraph (a), “unit cost of production” shall include both fixed and variable costs of production. (2) The Investigating Authority may, for the purposes of subsection (1), disregard such sales in determining the normal value where such sales were made— (a) within an extended period of time of not less than 6 months and not more than one year; (b) in substantial quantities; and (c) at prices which do not provide for the recovery of all costs within a reasonable period of time. (3) For the purposes of this section, sales below cost shall be considered as made in substantial quantities where— (a) the weighted average selling price of the transaction under consideration for the determination of the normal value is below the weighted average cost; or [Issue 3] T14A – 6 Revised Laws of Mauritius (b) the volume of sales below cost represents not less than 20 per cent of the volume sold in transaction under consideration for the determination of the normal value. (4) Where prices which are below cost at the time of sale are above the weighted average cost for the period of investigation, the Investigating Authority shall consider such prices as providing for recovery of costs within a reasonable period of time.