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1. The products referred to are products originating in the Community of Ten or in Spain or Portugal.

2. An anti-dumping duty may be applied to any dumped product whose clearance for home use in the Community of Ten or in Spain or Portugal causes inury, where the interests of the Community require Community action.

3. A product shall be considered to have been dumped if its export price to the Community of Ten or to Spain or Portugal is less than the normal value of a like product. B. NORMAL VALUE 4. For the purposes of this Regulation, normal value means:

(a) the comparable price actually paid or payable in the ordinary course of trade for the like product intended for home use in the exporting country or country of origin, providing that if there is considerable variation in prices within the Community of Ten, the weighted average of the prices prevailing within the Community of Ten may be taken as the comparable price; or (b) when there are no sales of the like product in the ordinary course of trade on the domestic market of the exporting country or country of origin, or when such sales do not permit a proper comparison:

(i) the comparable price of the like product when exported to any third country, which may be the highest such export price but should be a representative price; or (ii) the constructed value, determined by adding cost of production and a reasonable margin of profit. The cost of production shall be computed on the basis of all costs, in the ordinary course of trade, both fixed and variable, in the country of origin, of materials and manufacture, plus a reasonable amount for selling, administrative and other general expenses. As a general rule, and provided that a profit is normally realized on sales of products of the same general category on the domestic market of the country of origin, the addition for profit shall not exceed such normal profit. In other cases, the addition shall be determined on any reasonable basis, using available information.

5. Whenever there are reasonable grounds for believing or suspecting that the price at which a product is actually sold for home use in the country of origin is less than the cost of production as defined in paragraph 4 (b) (ii), sales at such prices may be considered as not having been made in the ordinary course of trade if they:

(a) have been made over an extended period of time and in substantial quantities; and (b) are not at prices which permit recovery of all costs within a reasonable period of time in the normal course of trade. In such circumstances, the normal value may be determined on the basis of the remaining sales on the domestic market made at a price which is not less than the cost of production or on the basis of export sales to third countries or on the basis of the constructed value or by adjusting the sub-production-cost price referred to above in order to eliminate loss and provide for a reasonable profit. Such normal-value calculations shall be based on available information.

6. Where a product is not imported directly from the country of origin but is exported to the Community of Ten or to Spain or Portugal from an intermediate country, the normal value shall be the comparable price actually paid or payable for the like product on the domestic market of either the country of export or the country of origin. The latter basis might be appropriate inter alia where the product is merely transhipped through the country of export, where such products are not produced in the country of export, or where no comparable price for it exists in the country of export.

7. For the purpose of determining normal value, transactions between parties which appear to be associated or to have a compensatory arrangement with each other may be considered as not being in the ordinary course of trade unless the Community authorities are satisfied that the prices and costs involved are comparable to those involved in transactions between parties which have no such link. C. EXPORT PRICE 8.

(a) The export price shall be the price actually paid or payable for the product sold for export to the Community of Ten or to Spain or Portugal, as the case may be.

(b) In cases where there is no export price or where it appears that there is an association or a compensatory arrangement between the exporter and the importer or a third party or there are other reasons for thinking that the price actually paid or payable for the product sold for export to the Community of Ten or to Spain or Portugal is unreliable, the export price may be constructed on the basis of the price at which the imported product is first resold to an independent buyer, or if the product is not resold to an independent buyer, or not resold in the condition as imported, on any reasonable basis. In such cases, allowance shall be made for all costs incurred between importation and resale, including all duties and taxes, and for a reasonable profit margin. In particular, allowance shall be made for the following:

(i) usual transport, insurance, handling, loading and ancillary costs;

(ii) customs duties, any anti-dumping duties, and other taxes payable in the importing country by reason of the importation or sale of the goods;

(iii) a reasonable margin for overheads and profit and/or any commission usually paid or agreed. D. COMPARISON

9. To ensure a fair comparison, the export price and the normal value compared shall be on a comparable basis as regards the physical characteristics of the product, the quantities involved and the conditions and terms of sale. They shall normally be compared at the same level of trade, preferably at the ex factory level, and as nearly as possible at the same time.

10. If the export price and the normal value are not on a comparable basis in respect of the factors mentioned in paragraph 9, due allowance shall be made in each case, on its merits, for differences affecting price comparability. Where adjustment for such differences is claimed by an interested party, the onus shall be on the interested party to prove that its claim is justified. The following guidelines shall apply in determing such adjustments:

(a) differences in the physical characteristics of the product: adjustment for such differences shall normally be based on their effect on the market value in the exporting country or country of origin; however, where domestic pricing data in that country are not available or do not permit a fair comparison, the calculation shall be based on the production costs accounting for such differences;

(b) differences in quantities: adjustment shall be made when the amount of any price differential is wholly or partly due to either:

(i) quantity discounts that have been freely available in the ordinary course of trade over a representative preceding period of time, usually not less than six months, in respect of a substantial proportion, usually not less than 20 %, of the total sales of the product concerned on the domestic market or, (ii) savings in production costs for the different quantities.

However, where the export price is based on quantities which are less than the smallest quantity sold on the domestic market or to third countries, as the case may be, an adjustment shall be made to reflect the higher price for which the smaller quantity would be sold on the domestic or third-country market;

(c) differences in conditions and terms of sale: adjustments shall be made only for differences directly relevant to the sales under consideration, including, for example, differences in credit terms, guarantees, warranties, technical assistance, after-sales service, commission or salaries paid to salesmen, packing, transport, insurance, handling, loading and ancillary costs and differences in the level of trade not otherwise allowed for; no adjustment will generally be made for differences in overheads and general expenses, including research development or advertising costs; the size of adjustments shall normally be determined by the cost of such differences to the seller, though consideration may also be given to their effect on the value of the product;

(d) differences in import charges: adjustments shall be made for the exemption of the product exported to the Community of Ten or to Spain or Portugal, as the case may be, from import charges borne by the like product or materials physically incorporated therein when destined for consumption in the exporting country or country of origin, or for the refund of such charges. E. ALLOCATION OF COSTS 11. In general, all cost calculations shall be based on available accounting data, normally allocated, where necessary, in proportion to the turnover for each product and market under consideration. F. LIKE PRODUCT 12. For the purposes of this Regulation, 'like product' means a product which is identical, i.e. alike in all respects to the product under consideration, or, in the absence of such a product, another product which has characteristics closely resembling those of the product under consideration. G. DUMPING MARGIN 13.

(a) 'Dumping margin' means the amount by which the normal value exceeds the export price.

(b) Where prices vary, the dumping margin may be established on a transaction-by-transaction basis or by reference to the most frequently occurring, representative or weighted average, prices.

(c) Where dumping margins vary, weighted averages may be established. H. CONSULTATION OF INTERESTED MEMBER STATES 14. For the purposes of this Regulation, consultation of interested Member States in connection with anti-dumping proceedings means the consultation, in writing and, if necessary, orally, of Member States which have an economic interest in the proceedings and have declared such interest within the period laid down by the Commission when it sent them the information referred to in Article 4 (3) and (6).