11.—(1) The TRA must determine the costs of production of the like goods in the exporting country or territory for the purpose of regulation 8(1)(a) in accordance with this regulation.
(2) Where paragraph (3) applies, costs of production of the like goods in the exporting country or territory must normally be calculated by the TRA on the basis of records kept by the overseas exporter of the goods concerned.
(3) This paragraph applies where the records of the overseas exporter of the goods concerned—
(a)are in accordance with generally accepted accounting principles of the exporting country or territory; and
(b)reasonably reflect the costs associated with the production and sale of the like goods in the exporting country or territory.
(4) In making a determination under this regulation the TRA must—
(a)consider any evidence on the proper allocation of costs provided that such allocations have been historically utilised by the overseas exporter, in particular in relation to establishing appropriate amortisation and depreciation periods and allowances for capital expenditures and other development costs;
(b)adjust costs where appropriate for non-recurring items of cost which benefit future or current production;
(c)adjust costs where they are affected by start-up operations; and
(d)take into account any other factors it considers relevant.
(5) Where the records of the overseas exporter do not meet the criteria in paragraph (3) the costs of production may be calculated by the TRA using any other reasonable basis.
(6) This regulation is subject to the TRA's power to make adjustments in accordance with regulation 13 (adjustments).
Commencement Information
I1Reg. 11 in force at 6.3.2019, see reg. 1(2)