Less Than Fair Value

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Less Than Fair Value

The deliberate sale of an export so that the export is significantly less expensive than a domestically produced good. A less than fair value sale is not simply less expensive, it is determined to be anti-competitive. Importing countries attempt to counteract less than fair value sales by setting up tariff barriers or countervailing duties. See also: Dumping.
References in periodicals archive ?
Underpinned by delivery delays, we slash our 2009e revenue and earnings estimates by c50% and 100%, and reduce our LTFV by 17% to AED1.11 per share.
The percentage amount that the price of the less than fair value (LTFV) imports must be increased to equal the fair price is called the dumping margin.
(10) Investigations are carried out by two agencies: the International Trade Administration (ITA) of the Department of Commerce, which investigates allegations of sales at less than fair value (LTFV); and the International Trade Commission (ITC), which investigates injury allegations.
(128) In Gerald Metals, the ITC originally determined that LTFV imports of magnesium from China, Russia, and the Ukraine injured the U.S.
As noted previously, (133) and as expressed by the CAFC, the antidumping statute "requires the injury to occur `by reason of' the LTFV imports." (134) The circuit court rejected the CIT's reasoning that evidence of minimal or tangential causation of injury satisfies the statutory causal requirement.
The ITA (Commerce) actually looks for prices that are "less than fair value" (LTFV) when determining whether dumping occurred.
If the actual transaction prices are below this constructed price then LTFV sales are said to have occurred.
This smaller value of pending sales, said the ITC, "also makes it more likely that purchasers will continue to use the LTFV imports to extract price concessions from the domestic producers."
Department of Commerce has determined that imports are being, or are likely to be, sold at less than fair value (LTFV) in the United States and when the U.S.