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.

There are four (4) elements of dumping, namely:

The foreign producer's domestic selling price is referred to as the "normal value" of the article. It is the comparable price in the ordinary course of trade for the like product when destined for consumption in the country of export or origin.

"Export price" refers to (1) the ex-factory price at the point of sale for export; or (2) the price assessed at the free-on-board (F.O.B.) level (at the point of shipment) of the allegedly dumped product.

An "arms length transaction" refers to a transaction where the price is not affected by any relationship between the buyer and the seller, of if there is no compensation, reimbursement, benefit, or other consideration given in respect of the price.

"Domestic industry" refers to the domestic producers of like products as a whole or to those whose collective output of the products constitutes a major proportion of the total domestic production of those products in the industry concerned.

"Comparable price" means the domestic price in the exporting country at the same level of trade which is sold or offered for sale at wholesale on the date of exportation to the Philippines.