Dumping occurs when foreign producers sell their products to an importer in the domestic market at prices lower than in their own national markets, or at prices below cost of production, the sale or importation of which injures or threatens to injure a domestic industry producing like or comparable products or retards the establishment of a potential industry. It is a form of price discrimination between two national markets.

Dumping is not illegal, nor prohibited.  Price discrimination in the form of dumping is a common international practice that can be beneficial to both exporting and importing countries.  It is not uncommon for export prices to be lower than the domestic or home market prices because of the intense competition in the international markets.  However, when it injures Philippine producers, duties can be imposed after a formal investigation.

The following conditions must be met to be considered dumping:

-    there must be a price difference between the export price and the normal value of the allegedly dumped product.

-    the imported product is injuring or threatening to injure or retard the establishment of a domestic industry; and

-    there is a causal link to show that injury to the local industry is due to dumping.