ARTICLE 43: OBLIGATION TO PROVIDE INFORMATION THAT JUSTIFIES SUSTAINED LOSSES

For the purposes of the provisions of the second paragraph of article 32 of the Law (LCE: Art. 32), when the applicant requests the corresponding exclusion, they must provide the information that justify action. In these cases, the Ministry (RLCE: Art. 1) may take into account the fact that, during the investigation period, sales prices or costs and expenses have been exceptionally low or high.

Sales of identical or similar merchandise in the internal market of the exporting country, or sales to a third world country at prices lower than the unit, fixed and variable costs of production plus administrative, sales and general expenses, may be considered as not made in the course of normal commercial operations for reasons of price, and may not be taken into account in the calculation of normal value, only if it is determined that these sales have been made for a prolonged period in substantial quantities and at prices that do not allow to recover all costs within a reasonable time. If the prices lower than the unit costs, at the time of the sale, are higher than the weighted average of the unit costs corresponding to the period under investigation, those prices will be considered to allow the costs to be recovered within a reasonable time.

The prolonged period of time should normally be one year, and never less than six months.

Sales at prices below unit costs in substantial quantities will be deemed to have been made when the authorities establish that the weighted average of the sales prices of the operations considered for the determination of normal value is less than the weighted average of costs units, or that the volume of sales made at prices below unit costs, does not represent less than 20 percent of the volume sold in the operations considered for the calculation of normal value.