Section 9: Calculation of costs

9. Calculation of costs (1) The Investigating Authority shall calculate costs 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 reasonably reflect the costs associated with the production and sale of the like product. (2) The amount for administrative, selling and general 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. (3) Where the amount of costs and profits cannot be calculated under subsection (2), the amount may be determined on the basis of— (a) the actual amount incurred and realized by the exporter or producer in respect of production and sales in the domestic market of the country of origin of the same general category of products; (b) the weighted average of the actual amounts incurred and realised 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; or (c) any other reasonable method, provided that the amount for profit so established does not exceed the profit normally realised by other exporters or producers on sales of products of the same general category in the domestic market of the country of origin of the like product. (4) The Investigating Authority shall consider all available evidence on the proper allocation of costs, including that which is made available by the exporter or producer in the course of the investigation provided that such allocations have been historically utilised by the exporter or producer, in relation to establishing appropriate amortization and depreciation periods and allowances for capital expenditures and other development costs. (5) Unless already reflected in the cost allocations under this section, the Investigating Authority shall adjust costs appropriately for non-recurring items of cost which benefit future or current production, or for circumstances in which costs during the period of investigation are affected by start-up operations. T14A – 7 [Issue 3] Trade (Anti-Dumping and Countervailing Measures) Act (6) The adjustment made for start-up operations shall reflect the costs at the end of the start-up period or where that period extends beyond the period of investigation, the most recent costs which can reasonably be taken into account by the Investigating Authority during the investigation.