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Understanding Constructed Export Price in International Trade Law
Definition & Meaning
The constructed export price refers to the price at which goods are first sold in the United States by or on behalf of the producer or exporter, or by an affiliated seller, to a buyer who is not affiliated with them. This price is adjusted to reflect various factors, ensuring it accurately represents the market value of the merchandise.
Table of content
Legal Use & context
This term is commonly used in international trade law and customs regulations. It is particularly relevant in cases involving anti-dumping duties, where the constructed export price is used to determine whether imported goods are being sold at unfairly low prices. Users may encounter this term when dealing with forms related to import/export activities, and they can utilize US Legal Forms templates to navigate these processes effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
For instance, if a company in Germany exports machinery to a U.S. distributor, the constructed export price would be the price at which the distributor sells that machinery in the U.S., adjusted for any applicable tariffs or costs. (hypothetical example)
Comparison with related terms
Term
Definition
Difference
Export Price
The price at which goods are sold for export.
Constructed export price includes adjustments and specific buyer/seller relationships.
Normal Value
The price of goods in the home market.
Normal value is based on domestic sales, while constructed export price is based on U.S. sales.
Common misunderstandings
What to do if this term applies to you
If you are involved in importing goods into the U.S. and need to understand the constructed export price, start by reviewing your sales agreements and pricing structures. Consider using US Legal Forms' templates to assist with any necessary documentation. If the situation is complex, seeking professional legal advice may be beneficial.
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