Definitions for "Antidumping Duty"
Selling below home market prices or cost of manufacture with material injury to an U.S. manufacturer is called dumping. Antidumping duties are levied upon further importation of the merchandise.
An additional duty imposed on imported goods to offset the threat or cause of injury to the domestic industry of the importing country when an exporter sells a good at a lower price in the importing market than in the exporting (home) market.
A penalty charge on imports to protect domestic industry against disruptive pricing practices by foreign firms (see dumping). An antidumping duty is supposed to be set equal to the margin of dumping, defined as the difference between fair value and the actual sales price. GATT Article 6 permits members to levy antidumping duties, while the GATT Antidumping Code attempts to standardize and discipline importing governments' activities in this area. See also circumvention and injury test.