[Code of Federal Regulations]
[Title 19, Volume 3]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR351.405]

[Page 258-259]
 
                        TITLE 19--CUSTOMS DUTIES
 
            CHAPTER III--INTERNATIONAL TRADE ADMINISTRATION,
                         DEPARTMENT OF COMMERCE
 
PART 351--ANTIDUMPING AND COUNTERVAILING DUTIES--Table of Contents
 
 Subpart D--Calculation of Export Price, Constructed Export Price, Fair 
                         Value, and Normal Value
 
Sec. 351.405  Calculation of normal value based on constructed value.

    (a) Introduction. In certain circumstances, the Secretary may 
determine normal value by constructing a value based on the cost of 
manufacture, selling general and administrative expenses, and profit. 
The Secretary may use constructed value as the basis for normal value 
where: neither the home market nor a third country market is viable; 
sales below the cost of production are disregarded; sales outside the 
ordinary course of

[[Page 259]]

trade, or sales the prices of which are otherwise unrepresentative, are 
disregarded; sales used to establish a fictitious market are 
disregarded; no contemporaneous sales of comparable merchandise are 
available; or in other circumstances where the Secretary determines that 
home market or third country prices are inappropriate. (See section 
773(e) and section 773(f) of the Act.) This section clarifies the 
meaning of certain terms relating to constructed value.
    (b) Profit and selling, general, and administrative expenses. In 
determining the amount to be added to constructed value for profit and 
for selling, general, and administrative expenses, the following rules 
will apply:
    (1) Under section 773(e)(2)(A) of the Act, ``foreign country'' means 
the country in which the merchandise is produced or a third country 
selected by the Secretary under Sec. 351.404(e), as appropriate.
    (2) Under section 773(e)(2)(B) of the Act, ``foreign country'' means 
the country in which the merchandise is produced.