[Code of Federal Regulations]
[Title 19, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR351.404]

[Page 258]
 
                        TITLE 19--CUSTOMS DUTIES
 
                         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.  351.404  Selection of the market to be used as the basis for normal value.

    (a) Introduction. Although in most circumstances sales of the 
foreign like product in the home market are the most appropriate basis 
for determining normal value, section 773 of the Act also permits use of 
sales to a third country or constructed value as the basis for normal 
value. This section clarifies the rules for determining the basis for 
normal value.
    (b) Determination of viable market--(1) In general. The Secretary 
will consider the exporting country or a third country as constituting a 
viable market if the Secretary is satisfied that sales of the foreign 
like product in that country are of sufficient quantity to form the 
basis of normal value.
    (2) Sufficient quantity. ``Sufficient quantity'' normally means that 
the aggregate quantity (or, if quantity is not appropriate, value) of 
the foreign like product sold by an exporter or producer in a country is 
5 percent or more of the aggregate quantity (or value) of its sales of 
the subject merchandise to the United States.
    (c) Calculation of price-based normal value in viable market--(1) In 
general. Subject to paragraph (c)(2) of this section:
    (i) If the exporting country constitutes a viable market, the 
Secretary will calculate normal value on the basis of price in the 
exporting country (see section 773(a)(1)(B)(i) of the Act (price used 
for determining normal value)); or
    (ii) If the exporting country does not constitute a viable market, 
but a third country does constitute a viable market, the Secretary may 
calculate normal value on the basis of price to a third country (see 
section 773(a)(1)(B)(ii) of the Act (use of third country prices in 
determining normal value)).
    (2) Exception. The Secretary may decline to calculate normal value 
in a particular market under paragraph (c)(1) of this section if it is 
established to the satisfaction of the Secretary that:
    (i) In the case of the exporting country or a third country, a 
particular market situation exists that does not permit a proper 
comparison with the export price or constructed export price (see 
section 773(a)(1)(B)(ii)(III) or section 773(a)(1)(C)(iii) of the Act); 
or
    (ii) In the case of a third country, the price is not representative 
(see section 773(a)(1)(B)(ii)(I) of the Act).
    (d) Allegations concerning market viability and the basis for 
determining a price-based normal value. In an antidumping investigation 
or review, allegations regarding market viability or the exceptions in 
paragraph (c)(2) of this section, must be filed, with all supporting 
factual information, in accordance with Sec.  351.301(d)(1).
    (e) Selection of third country. For purposes of calculating normal 
value based on prices in a third country, where prices in more than one 
third country satisfy the criteria of section 773(a)(1)(B)(ii) of the 
Act and this section, the Secretary generally will select the third 
country based on the following criteria:
    (1) The foreign like product exported to a particular third country 
is more similar to the subject merchandise exported to the United States 
than is the foreign like product exported to other third countries;
    (2) The volume of sales to a particular third country is larger than 
the volume of sales to other third countries;
    (3) Such other factors as the Secretary considers appropriate.
    (f) Third country sales and constructed value. The Secretary 
normally will calculate normal value based on sales to a third country 
rather than on constructed value if adequate information is available 
and verifiable (see section 773(a)(4) of the Act (use of constructed 
value)).