Dumping is the trade practice of selling goods in a foreign market below their normal value.
In trade-law analysis, normal value is often linked to the comparable price in the exporter’s domestic market, or to a constructed value when a direct comparison is unavailable. The comparison also requires attention to factors such as product characteristics, sales conditions and timing.
Importing countries may investigate dumping when domestic producers claim that low-priced imports cause material injury. If the legal tests are met, authorities can impose an anti-dumping duty, which is an additional import charge.
Dumping is not simply the same as offering a low price. A low export price may reflect lower costs, market conditions or ordinary competition. Anti-dumping procedures therefore use detailed evidence rather than price differences alone.