                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
           SUBTITLE IV--COUNTERVAILING AND ANTIDUMPING DUTIES
 
                       Part IV--General Provisions
 
Sec. 1677a. Export price and constructed export price


(a) Export price

    The term ``export price'' means the price at which the subject 
merchandise is first sold (or agreed to be sold) before the date of 
importation by the producer or exporter of the subject merchandise 
outside of the United States to an unaffiliated purchaser in the United 
States or to an unaffiliated purchaser for exportation to the United 
States, as adjusted under subsection (c) of this section.

(b) Constructed export price

    The term ``constructed export price'' means the price at which the 
subject merchandise is first sold (or agreed to be sold) in the United 
States before or after the date of importation by or for the account of 
the producer or exporter of such merchandise or by a seller affiliated 
with the producer or exporter, to a purchaser not affiliated with the 
producer or exporter, as adjusted under subsections (c) and (d) of this 
section.

(c) Adjustments for export price and constructed export price

    The price used to establish export price and constructed export 
price shall be--
        (1) increased by--
            (A) when not included in such price, the cost of all 
        containers and coverings and all other costs, charges, and 
        expenses incident to placing the subject merchandise in 
        condition packed ready for shipment to the United States,
            (B) the amount of any import duties imposed by the country 
        of exportation which have been rebated, or which have not been 
        collected, by reason of the exportation of the subject 
        merchandise to the United States, and
            (C) the amount of any countervailing duty imposed on the 
        subject merchandise under part I of this subtitle to offset an 
        export subsidy, and

        (2) reduced by--
            (A) except as provided in paragraph (1)(C), the amount, if 
        any, included in such price, attributable to any additional 
        costs, charges, or expenses, and United States import duties, 
        which are incident to bringing the subject merchandise from the 
        original place of shipment in the exporting country to the place 
        of delivery in the United States, and
            (B) the amount, if included in such price, of any export 
        tax, duty, or other charge imposed by the exporting country on 
        the exportation of the subject merchandise to the United States, 
        other than an export tax, duty, or other charge described in 
        section 1677(6)(C) of this title.

(d) Additional adjustments to constructed export price

    For purposes of this section, the price used to establish 
constructed export price shall also be reduced by--
        (1) the amount of any of the following expenses generally 
    incurred by or for the account of the producer or exporter, or the 
    affiliated seller in the United States, in selling the subject 
    merchandise (or subject merchandise to which value has been added)--
            (A) commissions for selling the subject merchandise in the 
        United States;
            (B) expenses that result from, and bear a direct 
        relationship to, the sale, such as credit expenses, guarantees 
        and warranties;
            (C) any selling expenses that the seller pays on behalf of 
        the purchaser; and
            (D) any selling expenses not deducted under subparagraph 
        (A), (B), or (C);

        (2) the cost of any further manufacture or assembly (including 
    additional material and labor), except in circumstances described in 
    subsection (e) of this section; and
        (3) the profit allocated to the expenses described in paragraphs 
    (1) and (2).

(e) Special rule for merchandise with value added after importation

    Where the subject merchandise is imported by a person affiliated 
with the exporter or producer, and the value added in the United States 
by the affiliated person is likely to exceed substantially the value of 
the subject merchandise, the administering authority shall determine the 
constructed export price for such merchandise by using one of the 
following prices if there is a sufficient quantity of sales to provide a 
reasonable basis for comparison and the administering authority 
determines that the use of such sales is appropriate:
        (1) The price of identical subject merchandise sold by the 
    exporter or producer to an unaffiliated person.
        (2) The price of other subject merchandise sold by the exporter 
    or producer to an unaffiliated person.

If there is not a sufficient quantity of sales to provide a reasonable 
basis for comparison under paragraph (1) or (2), or the administering 
authority determines that neither of the prices described in such 
paragraphs is appropriate, then the constructed export price may be 
determined on any other reasonable basis.

(f) Special rule for determining profit

                           (1) In general

        For purposes of subsection (d)(3) of this section, profit shall 
    be an amount determined by multiplying the total actual profit by 
    the applicable percentage.

                           (2) Definitions

        For purposes of this subsection:

        (A) Applicable percentage

            The term ``applicable percentage'' means the percentage 
        determined by dividing the total United States expenses by the 
        total expenses.

        (B) Total United States expenses

            The term ``total United States expenses'' means the total 
        expenses described in subsection (d)(1) and (2) of this section.

        (C) Total expenses

            The term ``total expenses'' means all expenses in the first 
        of the following categories which applies and which are incurred 
        by or on behalf of the foreign producer and foreign exporter of 
        the subject merchandise and by or on behalf of the United States 
        seller affiliated with the producer or exporter with respect to 
        the production and sale of such merchandise:
                (i) The expenses incurred with respect to the subject 
            merchandise sold in the United States and the foreign like 
            product sold in the exporting country if such expenses were 
            requested by the administering authority for the purpose of 
            establishing normal value and constructed export price.
                (ii) The expenses incurred with respect to the narrowest 
            category of merchandise sold in the United States and the 
            exporting country which includes the subject merchandise.
                (iii) The expenses incurred with respect to the 
            narrowest category of merchandise sold in all countries 
            which includes the subject merchandise.

        (D) Total actual profit

            The term ``total actual profit'' means the total profit 
        earned by the foreign producer, exporter, and affiliated parties 
        described in subparagraph (C) with respect to the sale of the 
        same merchandise for which total expenses are determined under 
        such subparagraph.

(June 17, 1930, ch. 497, title VII, Sec. 772, as added Pub. L. 96-39, 
title I, Sec. 101, July 26, 1979, 93 Stat. 181; amended Pub. L. 98-573, 
title VI, Sec. 614, Oct. 30, 1984, 98 Stat. 3036; Pub. L. 103-465, title 
II, Sec. 223, Dec. 8, 1994, 108 Stat. 4876.)


                               Amendments

    1994--Pub. L. 103-465 amended section generally, substituting 
present provisions for provisions defining ``United States price'', 
``purchase price'', and ``exporter's sales price'' and providing for 
adjustments to purchase price and exporter's sales price.
    1984--Subsec. (b). Pub. L. 98-573 inserted ``a reseller or'' before 
``the manufacturer''.


                    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 1984 Amendment

    Amendment by Pub. L. 98-573 effective Oct. 30, 1984, see section 
626(a) of Pub. L. 98-573, set out as a note under section 1671 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1677b, 1677f-1 of this 
title.
