What is a constructed value?

Constructed value refers to a valuation method used in international trade, particularly in the context of anti-dumping investigations. It is determined by estimating the value of a product based on its production costs, including materials, labor, and overhead, plus a reasonable profit margin. This approach is used when the actual market value of a product cannot be accurately assessed or when it is sold at unfairly low prices. Essentially, it helps establish a fair price for comparison against exported goods.