---
kind: "section"
citation: "19 U.S.C. § 1677b"
title: "19"
title_heading: "Customs Duties"
number: "1677b"
heading: "Normal value"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/19/1677b"
units:
  - "Chapter 4 — Tariff Act of 1930"
  - "Subtitle IV — Countervailing and Antidumping Duties"
  - "Part IV — General Provisions"
---

# §1677b. Normal value

- (a) **Determination—** In determining under this subtitle whether [subject merchandise](/usc/19/1677.md?p=25) is being, or is likely to be, sold at less than fair value, a fair comparison shall be made between the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A) and normal value. In order to achieve a fair comparison with the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A), normal value shall be determined as follows:
  - (1) **Determination of normal value—**
    - (A) **In general—** The normal value of the [subject merchandise](/usc/19/1677.md?p=25) shall be the price described in [subparagraph (B)](#a-1-B), at a time reasonably corresponding to the time of the sale used to determine the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A) under [section 1677a(a)](/usc/19/1677a.md?p=a) or (b) of this title.
    - (B) **Price—** The price referred to in [subparagraph (A)](#a-1-A) is—
      - (i) the price at which the [foreign like product](/usc/19/1677.md?p=16) is first sold (or, in the absence of a sale, offered for sale) for consumption in the exporting [country](/usc/19/1677.md?p=3), in the [usual commercial quantities](/usc/19/1677.md?p=17) and in the [ordinary course of trade](/usc/19/1677.md?p=15) and, to the extent practicable, at the same level of trade as the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A), or
      - (ii) in a case to which [subparagraph (C)](#a-1-C) applies, the price at which the [foreign like product](/usc/19/1677.md?p=16) is so sold (or offered for sale) for consumption in a [country](/usc/19/1677.md?p=3) other than the exporting [country](/usc/19/1677.md?p=3) or the [United States](/usc/19/1683.md?p=9), if—
        - (I) such price is representative,
        - (II) the aggregate quantity (or, if quantity is not appropriate, value) of the [foreign like product](/usc/19/1677.md?p=16) sold by the [exporter or producer](/usc/19/1677.md?p=28) in such other [country](/usc/19/1677.md?p=3) is 5 percent or more of the aggregate quantity (or value) of the [subject merchandise](/usc/19/1677.md?p=25) sold in the [United States](/usc/19/1683.md?p=9) or for export to the [United States](/usc/19/1683.md?p=9), and
        - (III) the [administering authority](/usc/19/1677.md?p=1) does not determine that the particular market situation prevents a proper comparison with the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A).
    - (C) **Third country sales—** This subparagraph applies when—
      - (i) the [foreign like product](/usc/19/1677.md?p=16) is not sold (or offered for sale) for consumption in the exporting [country](/usc/19/1677.md?p=3) as described in [subparagraph (B)(i)](#a-1-B-i),
      - (ii) the [administering authority](/usc/19/1677.md?p=1) determines that the aggregate quantity (or, if quantity is not appropriate, value) of the [foreign like product](/usc/19/1677.md?p=16) sold in the exporting [country](/usc/19/1677.md?p=3) is insufficient to permit a proper comparison with the sales of the [subject merchandise](/usc/19/1677.md?p=25) to the [United States](/usc/19/1683.md?p=9), or
      - (iii) the particular market situation in the exporting [country](/usc/19/1677.md?p=3) does not permit a proper comparison with the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A).

      For purposes of [clause (ii)](#a-1-C-ii), the aggregate quantity (or value) of the [foreign like product](/usc/19/1677.md?p=16) sold in the exporting [country](/usc/19/1677.md?p=3) shall normally be considered to be insufficient if such quantity (or value) is less than 5 percent of the aggregate quantity (or value) of sales of the [subject merchandise](/usc/19/1677.md?p=25) to the [United States](/usc/19/1683.md?p=9).

  - (2) **Fictitious markets—** No pretended sale or offer for sale, and no sale or offer for sale intended to establish a fictitious market, shall be taken into account in determining normal value. The occurrence of different movements in the prices at which different forms of the [foreign like product](/usc/19/1677.md?p=16) are sold (or, in the absence of sales, offered for sale) in the exporting [country](/usc/19/1677.md?p=3) after the issuance of an antidumping duty order may be considered by the [administering authority](/usc/19/1677.md?p=1) as evidence of the establishment of a fictitious market for the [foreign like product](/usc/19/1677.md?p=16) if the movement in such prices appears to reduce the amount by which the normal value exceeds the [export price](/usc/19/1683.md?p=5-A) (or the constructed [export price](/usc/19/1683.md?p=5-A)) of the [subject merchandise](/usc/19/1677.md?p=25).
  - (3) **Exportation from an intermediate country—** Where the [subject merchandise](/usc/19/1677.md?p=25) is exported to the [United States](/usc/19/1683.md?p=9) from an intermediate [country](/usc/19/1677.md?p=3), normal value shall be determined in the intermediate [country](/usc/19/1677.md?p=3), except that normal value may be determined in the [country](/usc/19/1677.md?p=3) of origin of the [subject merchandise](/usc/19/1677.md?p=25) if—
    - (A) the producer knew at the time of the sale that the [subject merchandise](/usc/19/1677.md?p=25) was destined for exportation;
    - (B) the [subject merchandise](/usc/19/1677.md?p=25) is merely transshipped through the intermediate [country](/usc/19/1677.md?p=3);
    - (C) sales of the [foreign like product](/usc/19/1677.md?p=16) in the intermediate [country](/usc/19/1677.md?p=3) do not satisfy the conditions of [paragraph (1)(C)](#a-1-C); or
    - (D) the [foreign like product](/usc/19/1677.md?p=16) is not produced in the intermediate [country](/usc/19/1677.md?p=3).
  - (4) **Use of constructed value—** If the [administering authority](/usc/19/1677.md?p=1) determines that the normal value of the [subject merchandise](/usc/19/1677.md?p=25) cannot be determined under [paragraph (1)(B)(i)](#a-1-B-i), then, notwithstanding [paragraph (1)(B)(ii)](#a-1-B-ii), the normal value of the [subject merchandise](/usc/19/1677.md?p=25) may be the constructed value of that merchandise, as determined under [subsection (e)](#e).
  - (5) **Indirect sales or offers for sale—** If the [foreign like product](/usc/19/1677.md?p=16) is [sold or, in the absence of sales, offered for sale](/usc/19/1677.md?p=14) through an affiliated party, the prices at which the [foreign like product](/usc/19/1677.md?p=16) is sold (or offered for sale) by such affiliated party may be used in determining normal value.
  - (6) **Adjustments—** The price described in [paragraph (1)(B)](#a-1-B) shall be—
    - (A) increased by the cost of all containers and coverings and all other costs, charges, and expenses incident to placing the [subject merchandise](/usc/19/1677.md?p=25) in condition packed ready for shipment to the [United States](/usc/19/1683.md?p=9);
    - (B) reduced by—
      - (i) when included in the price described in [paragraph (1)(B)](#a-1-B), the cost of all containers and coverings and all other costs, charges, and expenses incident to placing the [foreign like product](/usc/19/1677.md?p=16) in condition packed ready for shipment to the place of delivery to the purchaser,
      - (ii) the amount, if any, included in the price described in [paragraph (1)(B)](#a-1-B), attributable to any additional costs, charges, and expenses incident to bringing the [foreign like product](/usc/19/1677.md?p=16) from the original place of shipment to the place of delivery to the purchaser, and
      - (iii) the amount of any taxes imposed directly upon the [foreign like product](/usc/19/1677.md?p=16) or components thereof which have been rebated, or which have not been collected, on the [subject merchandise](/usc/19/1677.md?p=25), but only to the extent that such taxes are added to or included in the price of the [foreign like product](/usc/19/1677.md?p=16), and
    - (C) increased or decreased by the amount of any difference (or lack thereof) between the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A) and the price described in [paragraph (1)(B)](#a-1-B) (other than a difference for which allowance is otherwise provided under this section) that is established to the satisfaction of the [administering authority](/usc/19/1677.md?p=1) to be wholly or partly due to—
      - (i) the fact that the quantities in which the [subject merchandise](/usc/19/1677.md?p=25) is sold or agreed to be sold to the [United States](/usc/19/1683.md?p=9) are greater than or less than the quantities in which the [foreign like product](/usc/19/1677.md?p=16) is sold, agreed to be sold, or offered for sale,
      - (ii) the fact that merchandise described in subparagraph (B) or (C) of [section 1677(16) of this title](/usc/19/1677.md?p=16) is used in determining normal value, or
      - (iii) other differences in the circumstances of sale.
  - (7) **Additional adjustments—**
    - (A) **Level of trade—** The price described in [paragraph (1)(B)](#a-1-B) shall also be increased or decreased to make due allowance for any difference (or lack thereof) between the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A) and the price described in [paragraph (1)(B)](#a-1-B) (other than a difference for which allowance is otherwise made under this section) that is shown to be wholly or partly due to a difference in level of trade between the [export price](/usc/19/1683.md?p=5-A) or constructed [export price](/usc/19/1683.md?p=5-A) and normal value, if the difference in level of trade—
      - (i) involves the performance of different selling activities; and
      - (ii) is demonstrated to affect price comparability, based on a pattern of consistent price differences between sales at different levels of trade in the [country](/usc/19/1677.md?p=3) in which normal value is determined.

      In a case described in the preceding sentence, the amount of the adjustment shall be based on the price differences between the two levels of trade in the [country](/usc/19/1677.md?p=3) in which normal value is determined.

    - (B) **Constructed export price offset—** When normal value is established at a level of trade which constitutes a more advanced stage of distribution than the level of trade of the constructed [export price](/usc/19/1683.md?p=5-A), but the data available do not provide an appropriate basis to determine under [subparagraph (A)(ii)](#a-7-A-ii) a level of trade adjustment, normal value shall be reduced by the amount of indirect selling expenses incurred in the [country](/usc/19/1677.md?p=3) in which normal value is determined on sales of the [foreign like product](/usc/19/1677.md?p=16) but not more than the amount of such expenses for which a deduction is made under [section 1677a(d)(1)(D) of this title](/usc/19/1677a.md?p=d-1-D).
  - (8) **Adjustments to constructed value—** Constructed value as determined under [subsection (e)](#e), may be adjusted, as appropriate, pursuant to this subsection.
- (b) **Sales at less than cost of production—**
  - (1) **Determination; sales disregarded—** Whenever the [administering authority](/usc/19/1677.md?p=1) has reasonable grounds to believe or suspect that sales of the [foreign like product](/usc/19/1677.md?p=16) under consideration for the determination of normal value have been made at prices which represent less than the cost of production of that product, the [administering authority](/usc/19/1677.md?p=1) shall determine whether, in fact, such sales were made at less than the cost of production. If the [administering authority](/usc/19/1677.md?p=1) determines that sales made at less than the cost of production—
    - (A) have been made within an extended period of time in substantial quantities, and
    - (B) were not at prices which permit recovery of all costs within a reasonable period of time,

    such sales may be disregarded in the determination of normal value. Whenever such sales are disregarded, normal value shall be based on the remaining sales of the [foreign like product](/usc/19/1677.md?p=16) in the [ordinary course of trade](/usc/19/1677.md?p=15). If no sales made in the [ordinary course of trade](/usc/19/1677.md?p=15) remain, the normal value shall be based on the constructed value of the merchandise.

  - (2) **Definitions and special rules—** For purposes of this subsection—
    - (A) **Reasonable grounds to believe or suspect—**
      - (i) **Review—** In a review conducted under [section 1675 of this title](/usc/19/1675.md) involving a specific exporter, there are reasonable grounds to believe or suspect that sales of the [foreign like product](/usc/19/1677.md?p=16) have been made at prices that are less than the cost of production of the product if the [administering authority](/usc/19/1677.md?p=1) disregarded some or all of the exporter’s sales pursuant to [paragraph (1)](#b-1) in the investigation or, if a review has been completed, in the most recently completed review.
      - (ii) **Requests for information—** In an investigation initiated under [section 1673a of this title](/usc/19/1673a.md) or a review conducted under [section 1675 of this title](/usc/19/1675.md), the [administering authority](/usc/19/1677.md?p=1) shall request information necessary to calculate the constructed value and cost of production under subsections [(e)](#e) and [(f)](#f) to determine whether there are reasonable grounds to believe or suspect that sales of the [foreign like product](/usc/19/1677.md?p=16) have been made at prices that represent less than the cost of production of the product.
    - (B) **Extended period of time—** The term “extended period of time” means a period that is normally 1 year, but not less than 6 months.
    - (C) **Substantial quantities—** Sales made at prices below the cost of production have been made in substantial quantities if—
      - (i) the volume of such sales represents 20 percent or more of the volume of sales under consideration for the determination of normal value, or
      - (ii) the weighted average per unit price of the sales under consideration for the determination of normal value is less than the weighted average per unit cost of production for such sales.
    - (D) **Recovery of costs—** If prices which are below the per unit cost of production at the time of sale are above the weighted average per unit cost of production for the period of investigation or review, such prices shall be considered to provide for recovery of costs within a reasonable period of time.
  - (3) **Calculation of cost of production—** For purposes of this part, the cost of production shall be an amount equal to the sum of—
    - (A) the cost of materials and of fabrication or other processing of any kind employed in producing the [foreign like product](/usc/19/1677.md?p=16), during a period which would ordinarily permit the production of that [foreign like product](/usc/19/1677.md?p=16) in the ordinary course of business;
    - (B) an amount for selling, general, and administrative expenses based on actual data pertaining to production and sales of the [foreign like product](/usc/19/1677.md?p=16) by the exporter in question; and
    - (C) the cost of all containers and coverings of whatever nature, and all other expenses incidental to placing the [foreign like product](/usc/19/1677.md?p=16) in condition packed ready for shipment.

    For purposes of [subparagraph (A)](#b-3-A), if the normal value is based on the price of the [foreign like product](/usc/19/1677.md?p=16) sold for consumption in a [country](/usc/19/1677.md?p=3) other than the exporting [country](/usc/19/1677.md?p=3), the cost of materials shall be determined without regard to any internal tax in the exporting [country](/usc/19/1677.md?p=3) imposed on such materials or their disposition which are remitted or refunded upon exportation.

- (c) **Nonmarket economy countries—**
  - (1) **In general—** If—
    - (A) the [subject merchandise](/usc/19/1677.md?p=25) is exported from a [nonmarket economy country](/usc/19/1677.md?p=18-A), and
    - (B) the [administering authority](/usc/19/1677.md?p=1) finds that available information does not permit the normal value of the [subject merchandise](/usc/19/1677.md?p=25) to be determined under [subsection (a)](#a),

    the [administering authority](/usc/19/1677.md?p=1) shall determine the normal value of the [subject merchandise](/usc/19/1677.md?p=25) on the basis of the value of the factors of production utilized in producing the merchandise and to which shall be added an amount for general expenses and profit plus the cost of containers, coverings, and other expenses. Except as provided in [paragraph (2)](#c-2), the valuation of the factors of production shall be based on the best available information regarding the values of such factors in a market economy [country](/usc/19/1677.md?p=3) or [countries](/usc/19/1677.md?p=3) considered to be appropriate by the [administering authority](/usc/19/1677.md?p=1).

  - (2) **Exception—** If the [administering authority](/usc/19/1677.md?p=1) finds that the available information is inadequate for purposes of determining the normal value of [subject merchandise](/usc/19/1677.md?p=25) under [paragraph (1)](#c-1), the [administering authority](/usc/19/1677.md?p=1) shall determine the normal value on the basis of the price at which merchandise that is—
    - (A) comparable to the [subject merchandise](/usc/19/1677.md?p=25), and
    - (B) produced in one or more market economy [countries](/usc/19/1677.md?p=3) that are at a level of economic development comparable to that of the [nonmarket economy country](/usc/19/1677.md?p=18-A),

    is sold in other [countries](/usc/19/1677.md?p=3), including the [United States](/usc/19/1683.md?p=9).

  - (3) **Factors of production—** For purposes of [paragraph (1)](#c-1), the factors of production utilized in producing merchandise include, but are not limited to—
    - (A) hours of labor required,
    - (B) quantities of raw materials employed,
    - (C) amounts of energy and other utilities consumed, and
    - (D) representative capital cost, including depreciation.
  - (4) **Valuation of factors of production—** The [administering authority](/usc/19/1677.md?p=1), in valuing factors of production under [paragraph (1)](#c-1), shall utilize, to the extent possible, the prices or costs of factors of production in one or more market economy [countries](/usc/19/1677.md?p=3) that are—
    - (A) at a level of economic development comparable to that of the [nonmarket economy country](/usc/19/1677.md?p=18-A), and
    - (B) significant producers of comparable merchandise.
  - (5) **Discretion to disregard certain price or cost values—** In valuing the factors of production under [paragraph (1)](#c-1) for the [subject merchandise](/usc/19/1677.md?p=25), the [administering authority](/usc/19/1677.md?p=1) may disregard price or cost values without further investigation if the [administering authority](/usc/19/1677.md?p=1) has determined that broadly available export subsidies existed or particular instances of subsidization occurred with respect to those price or cost values or if those price or cost values were subject to an antidumping order.
- (d) **Special rule for certain multinational corporations—** Whenever, in the course of an investigation under this subtitle, the [administering authority](/usc/19/1677.md?p=1) determines that—
  - (1) [subject merchandise](/usc/19/1677.md?p=25) exported to the [United States](/usc/19/1683.md?p=9) is being produced in facilities which are owned or controlled, directly or indirectly, by a [person](/usc/19/1683.md?p=8), firm, or corporation which also owns or controls, directly or indirectly, other facilities for the production of the [foreign like product](/usc/19/1677.md?p=16) which are located in another [country](/usc/19/1677.md?p=3) or [countries](/usc/19/1677.md?p=3),
  - (2) [subsection (a)(1)(C)](#a-1-C) applies, and
  - (3) the normal value of the [foreign like product](/usc/19/1677.md?p=16) produced in one or more of the facilities outside the exporting [country](/usc/19/1677.md?p=3) is higher than the normal value of the [foreign like product](/usc/19/1677.md?p=16) produced in the facilities located in the exporting [country](/usc/19/1677.md?p=3),

  it shall determine the normal value of the [subject merchandise](/usc/19/1677.md?p=25) by reference to the normal value at which the [foreign like product](/usc/19/1677.md?p=16) is sold in substantial quantities from one or more facilities outside the exporting [country](/usc/19/1677.md?p=3). The [administering authority](/usc/19/1677.md?p=1), in making any determination under this paragraph, shall make adjustments for the difference between the cost of production (including taxes, labor, materials, and overhead) of the [foreign like product](/usc/19/1677.md?p=16) produced in facilities outside the exporting [country](/usc/19/1677.md?p=3) and costs of production of the [foreign like product](/usc/19/1677.md?p=16) produced in facilities in the exporting [country](/usc/19/1677.md?p=3), if such differences are demonstrated to its satisfaction. For purposes of this subsection, in determining the normal value of the [foreign like product](/usc/19/1677.md?p=16) produced in a [country](/usc/19/1677.md?p=3) outside of the exporting [country](/usc/19/1677.md?p=3), the [administering authority](/usc/19/1677.md?p=1) shall determine its price at the time of exportation from the exporting [country](/usc/19/1677.md?p=3) and shall make any adjustments required by [subsection (a)](#a) for the cost of all containers and coverings and all other costs, charges, and expenses incident to placing the merchandise in condition packed ready for shipment to the [United States](/usc/19/1683.md?p=9) by reference to such costs in the exporting [country](/usc/19/1677.md?p=3).

- (e) **Constructed value—** For purposes of this subtitle, the constructed value of imported merchandise shall be an amount equal to the sum of—
  - (1) the cost of materials and fabrication or other processing of any kind employed in producing the merchandise, during a period which would ordinarily permit the production of the merchandise in the [ordinary course of trade](/usc/19/1677.md?p=15);
  - (2)
    - (A) the actual amounts incurred and realized by the specific [exporter or producer](/usc/19/1677.md?p=28) being examined in the investigation or review for selling, general, and administrative expenses, and for profits, in connection with the production and sale of a [foreign like product](/usc/19/1677.md?p=16), in the [ordinary course of trade](/usc/19/1677.md?p=15), for consumption in the foreign [country](/usc/19/1677.md?p=3), or
    - (B) if actual data are not available with respect to the amounts described in [subparagraph (A)](#e-2-A), then—
      - (i) the actual amounts incurred and realized by the specific [exporter or producer](/usc/19/1677.md?p=28) being examined in the investigation or review for selling, general, and administrative expenses, and for profits, in connection with the production and sale, for consumption in the foreign [country](/usc/19/1677.md?p=3), of merchandise that is in the same general category of products as the [subject merchandise](/usc/19/1677.md?p=25),
      - (ii) the weighted average of the actual amounts incurred and realized by exporters or producers that are subject to the investigation or review (other than the [exporter or producer](/usc/19/1677.md?p=28) described in [clause (i)](#e-2-B-i)) for selling, general, and administrative expenses, and for profits, in connection with the production and sale of a [foreign like product](/usc/19/1677.md?p=16), in the [ordinary course of trade](/usc/19/1677.md?p=15), for consumption in the foreign [country](/usc/19/1677.md?p=3), or
      - (iii) the amounts incurred and realized for selling, general, and administrative expenses, and for profits, based on any other reasonable method, except that the amount allowed for profit may not exceed the amount normally realized by exporters or producers (other than the [exporter or producer](/usc/19/1677.md?p=28) described in [clause (i)](#e-2-B-i)) in connection with the sale, for consumption in the foreign [country](/usc/19/1677.md?p=3), of merchandise that is in the same general category of products as the [subject merchandise](/usc/19/1677.md?p=25); and
  - (3) the cost of all containers and coverings of whatever nature, and all other expenses incidental to placing the [subject merchandise](/usc/19/1677.md?p=25) in condition packed ready for shipment to the [United States](/usc/19/1683.md?p=9).

  For purposes of [paragraph (1)](#e-1), if a particular market situation exists such that the cost of materials and fabrication or other processing of any kind does not accurately reflect the cost of production in the [ordinary course of trade](/usc/19/1677.md?p=15), the [administering authority](/usc/19/1677.md?p=1) may use another calculation methodology under this part or any other calculation methodology. For purposes of [paragraph (1)](#e-1), the cost of materials shall be determined without regard to any internal tax in the exporting [country](/usc/19/1677.md?p=3) imposed on such materials or their disposition that is remitted or refunded upon exportation of the [subject merchandise](/usc/19/1677.md?p=25) produced from such materials.

- (f) **Special rules for calculation of cost of production and for calculation of constructed value—** For purposes of subsections [(b)](#b) and [(e)](#e).—[^1]
  - (1) **Costs—**
    - (A) **In general—** Costs shall normally be calculated based on the records of the [exporter or producer](/usc/19/1677.md?p=28) of the merchandise, if such records are kept in accordance with the generally accepted accounting principles of the exporting [country](/usc/19/1677.md?p=3) (or the producing [country](/usc/19/1677.md?p=3), where appropriate) and reasonably reflect the costs associated with the production and sale of the merchandise. The [administering authority](/usc/19/1677.md?p=1) shall consider all available evidence on the proper allocation of costs, including that which is made available by the [exporter or producer](/usc/19/1677.md?p=28) on a timely basis, if such allocations have been historically used by the [exporter or producer](/usc/19/1677.md?p=28), in particular for establishing appropriate amortization and depreciation periods, and allowances for capital expenditures and other development costs.
    - (B) **Nonrecurring costs—** Costs shall be adjusted appropriately for those nonrecurring costs that benefit current or future production, or both.
    - (C) **Startup costs—**
      - (i) **In general—** Costs shall be adjusted appropriately for circumstances in which costs incurred during the time period covered by the investigation or review are affected by startup operations.
      - (ii) **Startup operations—** Adjustments shall be made for startup operations only where—
        - (I) a producer is using new production facilities or producing a new product that requires substantial additional investment, and
        - (II) production levels are limited by technical factors associated with the initial phase of commercial production.

      For purposes of subclause (II), the initial phase of commercial production ends at the end of the startup period. In determining whether commercial production levels have been achieved, the [administering authority](/usc/19/1677.md?p=1) shall consider factors unrelated to startup operations that might affect the volume of production processed, such as demand, seasonality, or business cycles.

      - (iii) **Adjustment for startup operations—** The adjustment for startup operations shall be made by substituting the unit production costs incurred with respect to the merchandise at the end of the startup period for the unit production costs incurred during the startup period. If the startup period extends beyond the period of the investigation or review under this subtitle, the [administering authority](/usc/19/1677.md?p=1) shall use the most recent cost of production data that it reasonably can obtain, analyze, and verify without delaying the timely completion of the investigation or review. For purposes of this subparagraph, the startup period ends at the point at which the level of commercial production that is characteristic of the merchandise, producer, or [industry](/usc/19/1677.md?p=4-A) concerned is achieved.
  - (2) **Transactions disregarded—** A transaction directly or indirectly between affiliated [persons](/usc/19/1683.md?p=8) may be disregarded if, in the case of any element of value required to be considered, the amount representing that element does not fairly reflect the amount usually reflected in sales of merchandise under consideration in the market under consideration. If a transaction is disregarded under the preceding sentence and no other transactions are available for consideration, the determination of the amount shall be based on the information available as to what the amount would have been if the transaction had occurred between [persons](/usc/19/1683.md?p=8) who are not affiliated.
  - (3) **Major input rule—** If, in the case of a transaction between affiliated [persons](/usc/19/1683.md?p=8) involving the production by one of such [persons](/usc/19/1683.md?p=8) of a major input to the merchandise, the [administering authority](/usc/19/1677.md?p=1) has reasonable grounds to believe or suspect that an amount represented as the value of such input is less than the cost of production of such input, then the [administering authority](/usc/19/1677.md?p=1) may determine the value of the major input on the basis of the information available regarding such cost of production, if such cost is greater than the amount that would be determined for such input under [paragraph (2)](#f-2).

## Footnotes

[^1]: So in original. The period preceding the dash probably should not appear.

## Source credit

(June 17, 1930, ch. 497, title VII, § 773, as added Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. 182; amended Pub. L. 98–573, title VI, §§ 615, 620(b), Oct. 30, 1984, 98 Stat. 3036, 3039; Pub. L. 99–514, title XVIII, § 1886(a)(11), Oct. 22, 1986, 100 Stat. 2922; Pub. L. 100–418, title I, §§ 1316(a), 1318, 1319, Aug. 23, 1988, 102 Stat. 1186, 1189; Pub. L. 103–465, title II, § 224, Dec. 8, 1994, 108 Stat. 4878; Pub. L. 114–27, title V, §§ 504(b), (c), 505, June 29, 2015, 129 Stat. 385.)

## Notes

### Editorial Notes

### Amendments

2015—Subsec. (a)(1)(B)(ii)(III). Pub. L. 114–27, § 504(b), which directed amendment of subcl. (III) by striking out “in such other country.”, was executed by striking out “in such other country” after “particular market situation” to reflect the probable intent of Congress.

Subsec. (b)(2)(A). Pub. L. 114–27, § 505(a), added subpar. (A) and struck out former subpar. (A). Prior to amendment, text read as follows: “There are reasonable grounds to believe or suspect that sales of the foreign like product were made at prices that are less than the cost of production of the product, if—

“(i) in an investigation initiated under section 1673a of this title or a review conducted under section 1675 of this title, an interested party described in subparagraph (C), (D), (E), (F), or (G) of section 1677(9) of this title provides information, based upon observed prices or constructed prices or costs, that sales of the foreign like product under consideration for the determination of normal value have been made at prices which represent less than the cost of production of the product; or

“(ii) in a review conducted under section 1675 of this title involving a specific exporter, the administering authority disregarded some or all of the exporter’s sales pursuant to paragraph (1) in the investigation or if a review has been completed, in the most recently completed review.”

Subsec. (c)(5). Pub. L. 114–27, § 505(b), added par. (5).

Subsec. (e). Pub. L. 114–27, § 504(c)(2), in concluding provisions, substituted “For purposes of paragraph (1), if a particular market situation exists such that the cost of materials and fabrication or other processing of any kind does not accurately reflect the cost of production in the ordinary course of trade, the administering authority may use another calculation methodology under this part or any other calculation methodology. For purposes of paragraph (1), the cost of materials shall be determined without regard to any internal tax in the exporting country imposed on such materials or their disposition that is remitted or refunded upon exportation of the subject merchandise produced from such materials.” for “For purposes of paragraph (1), the cost of materials shall be determined without regard to any internal tax in the exporting country imposed on such materials or their disposition which are remitted or refunded upon exportation of the subject merchandise produced from such materials.”

Subsec. (e)(1). Pub. L. 114–27, § 504(c)(1), substituted “trade” for “business”.

1994—Pub. L. 103–465 amended section generally, substituting present provisions for provisions relating to foreign market value, which provided for determination of value in subsec. (a), sales at less than cost of production in subsec. (b), treatment of merchandise from nonmarket economy countries in subsec. (c), special rule for certain multinational corporations in subsec. (d), determination of constructed value in subsec. (e), and exportation from an intermediate country in subsec. (f).

1988—Subsec. (a)(5). Pub. L. 100–418, § 1319, added par. (5).

Subsec. (c). Pub. L. 100–418, § 1316(a), amended subsec. (c) generally, substituting provisions relating to nonmarket economy countries, for provisions relating to State-controlled economies.

Subsec. (e)(2) to (4). Pub. L. 100–418, § 1318, substituted “(4)” for “(3)” wherever appearing in par. (2), added par. (3), and redesignated former par. (3) as (4) and in introductory provisions substituted “paragraphs (2) and (3)” for “paragraph (2)”.

1986—Subsecs. (f), (g). Pub. L. 99–514 redesignated subsec. (g) as (f).

1984—Subsec. (a)(1). Pub. L. 98–573, § 615(1), substituted “time such merchandise is first sold within the United States by the person for whom (or for whose account) the merchandise is imported to any other person who is not described in subsection (e)(3) of this section with respect to such person” for “time of exportation of such merchandise to the United States” in provisions before subpar. (A).

Subsecs. (a)(1)(A), (4)(A), (e)(1)(B). Pub. L. 98–573, § 615(2), substituted “commercial quantities” for “wholesale quantities” wherever appearing.

Subsec. (f). Pub. L. 98–573, § 620(b), struck out subsec. (f) which related to the authority to use sampling techniques and to disregard insignificant adjustments.

Subsec. (g). Pub. L. 98–573, § 615(3), added subsec. (g).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1994 Amendment

Amendment by Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO Agreement enters into force with respect to the United States (Jan. 1, 1995), and applicable with respect to investigations, reviews, and inquiries initiated and petitions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set out as a note under section 1671 of this title.

### Effective Date of 1988 Amendment

Amendment by sections 1316(a) and 1318 of Pub. L. 100–418 applicable with respect to investigations initiated after Aug. 23, 1988, and to reviews initiated under section 1673e(c) or 1675 of this title after Aug. 23, 1988, and amendment by section 1319 of Pub. L. 100–418 applicable with respect to reviews initiated under section 1673e(c) or 1675 of this title after Aug. 23, 1988, and to reviews initiated under such sections which are pending on Aug. 23, 1988, and in which a request for revocation is pending on Aug. 23, 1988, see section 1337(b), (f) of Pub. L. 100–418, set out as a note under section 1671 of this title.

### Effective Date of 1984 Amendment

Amendment by section 615 of Pub. L. 98–573 effective Oct. 30, 1984, and amendment by section 620(b) of Pub. L. 98–573 applicable with respect to investigations initiated by petition or by the administering authority under parts I and II of this subtitle, and to reviews begun under section 1675 of this title, on or after Oct. 30, 1984, see section 626(a), (b)(1) of Pub. L. 98–573, as amended, set out as a note under section 1671 of this title.

### Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code.