Anti-dumping (AD) duties and countervailing duties (CVD) are types of trade barriers that are designed to protect the U.S. manufacturing industry from foreign competition
Anti-dumping duties are imposed on foreign manufacturers who sell their goods in the US at less than fair value. This practice, known as "dumping," can lead to lower prices for imported goods, which can make it difficult for domestic manufacturers to compete.
Countervailing duties are imposed on foreign manufacturers who receive subsidies or other benefits from their government that allow them to sell their goods more cheaply than U.S. manufacturers. This can also lead to unfair competition and harm to the U.S. manufacturing industry.
Both AD duties and CVDs are intended to level the playing field for U.S. manufacturers and prevent foreign companies from undercutting domestic prices.
Anti-dumping (AD) duties and countervailing duties (CVD) are determined in different ways, depending on the type of duty being imposed.
Anti-dumping duties are calculated on a company-specific basis. The duty amount is determined based on the gap between the foreign manufacturer's pricing and the fair market value of the goods. The goal is to level the playing field by imposing a duty that makes up for the difference between the two prices.
Countervailing duties, on the other hand, are determined on a country-specific basis by the relevant authorities. The duty rate is calculated to exactly offset the value of the subsidy or foreign government assistance that the foreign manufacturer is receiving.
This is intended to level the playing field and prevent foreign manufacturers from having an unfair advantage due to government support.
Anti-dumping (AD) duties and countervailing duties (CVD) are administered by the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC).
If a U.S. manufacturer or company believes that a foreign manufacturer is selling goods in the US at less than fair value (a practice known as "dumping"), or if a foreign government is providing subsidies or other benefits to its manufacturers (thereby allowing them to sell their goods more cheaply than U.S. manufacturers), they can file a petition with the ITC and DOC requesting that AD duties or CVDs be imposed.
To file a petition, the manufacturer or company must provide information about the imported goods, the exporters, and the importers, as well as information about the subsidies and prices involved and any critical circumstances or injury to the U.S. industry.
The ITC and DOC will review the petition and conduct investigations to determine its validity. If they determine that AD duties or CVDs are appropriate, they will instruct U.S. Customs and Border Protection to assess the appropriate duties on the imported goods.
Anti-dumping (AD) duties and countervailing duties (CVD) may impact your products if they are imported into the United States, depending on the country of origin and type of product. To determine whether your products are subject to these duties, you can check the list of goods that are currently affected by AD/CVD duties on the International Trade Administration's website.
This list is updated regularly and provides official information on the products that are subject to AD/CVD duties, as well as the countries of origin and the applicable duty rates. By checking this list, you can determine whether your products are impacted by these duties and, if so, what the applicable duty rates are.
It's important to be aware of AD/CVD duties and their potential impact on your products to ensure compliance and avoid any penalties or other enforcement actions.