ARTICLE 46: APPLICABLE RULES TO OBTAIN THE RECONSTRUCTED VALUE
For the purposes of section II of article 31 of the Law (LCE: Art. 31), the following rules will apply:
The cost of production must be obtained through the weighted average cost incurred in all the plants, of each exporter, that manufactures the merchandise under investigation.
As a general rule, the cost of packaging will be considered part of the cost of production;
The assignment methods must show an obvious and reasonably verifiable relationship between the cost or expense to be distributed and the proration basis that applies;
In the second case, the assignment of general expenses to the product under investigation must be equivalent to the general expense observed on average for all the company's products. For the purposes of this calculation, general expenses should be normalized in terms of cost of sales. The average general expenses will be estimated by dividing the general expenses by the cost of sales, according to the figures reported in the financial statements of the company. The general expenses attributable to the product under investigation shall be determined by multiplying the resulting factor by the specific cost of sales of said product;
The costs related to the idleness of the factors of production will be considered as fixed costs and, as the case may be, will be assigned directly to the product under investigation or distributed to it in a proportional manner;
As an exception to the previous rule, the expenses recognized in a fiscal year may be distributed over a longer period, when:
When the margin of price discrimination is estimated by the type of merchandise, for purposes of calculating the profit margin, the generic category will be understood as the types of merchandise for which the normal value is determined according to internal prices. In particular, the profit margin will be estimated according to the weighted average profit margin observed in internal sales that serve as a basis for establishing normal values based on prices.
If this method is not applicable because no normal value per class of merchandise is determined on the basis of prices, the first category of goods will be understood as a generic category, according to the company's accounting information systems, which contains the product under investigation and with regarding which there are profit figures.
When the accounting information available only refers to profits at the corporate level, the company as a whole will be considered as a generic category. In these cases, the profit margin for the product under investigation must be equivalent to the average margin observed for all the company's products. In particular, the average margin should be calculated by dividing the profits, before being affected by direct taxes and by third party participation on them, by the cost of sales, according to the corporate data. The profit attributable to the product under investigation shall be determined by multiplying the resulting average margin by the specific cost of sales of said product.
The methods described in the previous paragraphs should be discarded when a profit margin is obtained that does not reflect a long-term condition, but a transitory or temporary situation. In these cases, the profit margin should be calculated on the basis of additional financial information that strictly corresponds to the investigation period; if this last procedure is not satisfactory, the Ministry will determine the profit margin by any other method of economic and accounting research, as well as based on the facts that are known, and
For the purpose of calculating the above concepts, the Ministry will accept as valid the generally accepted accounting principles that prevail in the country of origin as long as they do not contravene the legislation on unfair international trade practices and other legal provisions that are applicable.