Barcode : 4259556-02 A-533-889 REV - Admin Review 12 / 13 / 19 - 5 / 31 / 21
Because PESL had no viable home or third-country market during the POR , we based NV on CV . When NV is based on CV , the NV LOT is that of the sales from which we derive selling expenses and profit . In accordance with 19 CFR 351.412 ( d ), where possible , Commerce will make its LOT determination under paragraph ( d )( 2 ) of that section on the basis of sales of the foreign like product by the producer or exporter .
Because it is not possible to make an LOT determination for PESL on the basis of home-market or third-country sales , Commerce may use sales of different or broader product lines , sales by other companies , or any other reasonable basis . As discussed further below in the section titled “ Calculation of Normal Value Based on Constructed Value ,” we based the CV profit and selling expenses for PESL on the financial statements of two Indian producers of QSP . However , there is no information on the record pertaining to these companies ’ selling activities with respect to their sales of QSP that allows us to determine the LOT of the sales from which we derived profit and selling expenses for CV , or examine whether any difference in LOT exists or affects price comparability . Therefore , because there is no basis to evaluate whether the price comparability has been affected because of differences in the level of trade , we did not grant a level of trade adjustment to NV that we established for PESL in this administrative review .
3 . Calculation of Normal Value Based on Constructed Value
In accordance with section 773 ( a )( 4 ) of the Act , we based PESL ’ s NV on CV because PESL had no viable home or third-country markets . In accordance with section 773 ( e ) of the Act , we calculated CV based on the sum of the costs of materials and fabrication employed in producing the subject merchandise , amounts for general and administrative ( G & A ) expenses , interest , profit , selling expenses , and U . S . packing costs . We relied on the cost data submitted by PESL , except for adjustments made regarding non-prime merchandise . 71 We examined the cost data and determined that our quarterly cost methodology is not warranted in this review . Therefore , we have applied our standard methodology of using annual costs based on the reported data of PESL .
PESL did not have a viable home or third-country market during the POR , and thus , we are unable to calculate CV selling expenses and profit ratios using the preferred method under section 773 ( e )( 2 )( A ) of the Act , i . e ., based on the respondent ’ s own home-market or thirdcountry sales made in the ordinary course of trade . When the preferred method is unavailable , we must instead rely on one of the three alternatives outlined in sections 773 ( e )( 2 )( B )( i ) through ( iii ) of the Act . Those alternatives are : ( i ) the use of the actual amounts incurred and realized by the specific exporter or producer in connection with the production and sale of merchandise that is in the same general category of products as the subject merchandise ; ( ii ) the use of the weighted average of the actual amounts incurred and realized by exporters or producers ( other than the respondent ) that are subject to the investigation or review ; or ( iii ) based on any other reasonable method , except that the amount for profit may not exceed the amount realized by exporters or producers ( other than the respondent ) in connection with the sale , for consumption in the foreign country , of merchandise that is in the same general category of products as the subject merchandise ( i . e ., the “ profit cap ”).
71
See PESL ’ s Preliminary Analysis Memorandum at 4 and Attachment 1 .
17 Filed By : Kyle Clahane , Filed Date : 7 / 1 / 22 2:00 PM , Submission Status : Approved