Dumping in the United States

Dumping in the International Business Landscape

Definition of Dumping in the context of U.S. international business and public trade policy: Predatory pricing practices in international trade, where goods are sold below cost in a foreign market, or at a cost lower than in the home market.

Dumping in the International Business Landscape

Definition of Dumping in the context of U.S. international business and public trade policy: Sale of imported goods either (1) at prices below what a company charges in its home market or (2) at price below cost.

Dumping in the International Business Landscape

Definition of Dumping in the context of U.S. international business and public trade policy: The sale of commodity in a foreign market at “less than fair value.” Fair value is usually considered to be the price at which the same product is sold in the exporting country or to third countries, but under US law dumping can also be established by comparing the export price to the estimated costs of production of the merchandise in question. When dumping occurs, the legal remedy is imposition of a special duty equal to the “margin” of dumping, the difference between fair value and the actual sales price.

Concept of Dumping in Foreign Trade

A definition of Dumping in relation with foreign trade is provided here: Occurs when goods are exported at a price less than their normal value, generally meaning they are exported for less than they are sold in the domestic market or third-country markets, or at less than production cost. (Source: World Trade Organization)