ARTICLE 56: ADJUSTMENT FOR PHYSICAL DIFFERENCES

When prices vary depending on the physical characteristics of the merchandise sold, and some merchandise sold in the country of origin are not physically equal to the merchandise exported, the normal value will be calculated on all internal sales, once they have been canceled the differences between the internal prices derived from the physical differences between the merchandise. As a general rule, the prices of internal sales not comparable to export sales will be equal to the prices of comparable internal sales by adjusting the difference between the variable production costs of both types of merchandise.

Also, as a general rule, when prices vary according to the physical characteristics of the merchandise sold, and none of the merchandise sold in the country of origin is physically equal to the merchandise exported, the prices of the internal sales shall be equal to the export sales prices by adjusting the difference between the variable production costs of both types of merchandise.

Generally, the merchandise will be considered as physically different when the accounting information systems of each company classify them in different product codes.