In principle, dumping is defined as importing (selling) merchandise into a country below the cost of manufacture (or below fair market value) in its source economy. In practice the methods of accounting used in a dumping investigation (i.e., a case) for establishing the cost of manufacture of the goods in their domestic market are usually heavily skewed in favor of finding dumping. Under international trade rules, if dumping is found to be taking place, the country of import can impose a tariff called a “dumping margin” on the goods to increase their imported value to “fair market value.”

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