LTFV financial definition of LTFV
Less Than Fair Value (redirected from LTFV)
Also found in: Acronyms
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
While the statute protects domestic magnesium producers from injury caused by LTFV imports, its scope of protection does not reach so far as to support artificially inflated prices when fairly-traded imports are underselling the domestic product.
Hence, the antidumping statute mandates a showing of causal--not merely temporal--connection between the LTFV goods and the material injury.
The three alternative criteria for establishing LTFV are the following:
If the actual transaction prices are below this constructed price then LTFV sales are said to have occurred.
First, the ITA often combines methods when determining the LTFV margin.