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What Are Anti-dumping and Countervailing Duties

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Anti-Dumping and Countervailing Duties: Protecting U.S. Manufacturing

What are Anti-Dumping (AD) and Countervailing Duties (CVD)?

Anti-dumping duties and countervailing duties are trade barriers designed to safeguard the U.S. manufacturing industry from foreign competition.

How do Anti-Dumping Duties Work?

Anti-dumping duties are imposed when foreign manufacturers sell goods in the U.S. below fair value, a practice known as "dumping." Key points include:

  • Determined on a company-specific basis
  • Calculation based on the gap between foreign pricing and fair market value
  • Goal: Level the playing field and prevent unfair competition

What about Countervailing Duties?

Countervailing duties are imposed when foreign manufacturers receive subsidies, allowing them to sell goods more cheaply than U.S. manufacturers. Key points:

  • Determined on a country-specific basis
  • Calculation offsets the value of subsidies or government assistance
  • Objective: Prevent unfair advantages due to government support

Administration of AD and CVD

Administered by the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC).

Filing Petitions for AD/CVD

If a U.S. manufacturer believes dumping or subsidies occur, they can file a petition with the ITC and DOC. Steps include:

  • Provide information about imported goods, exporters, and importers
  • Include details about subsidies, prices, and any injury to the U.S. industry
  • Review and investigation by ITC and DOC
  • If appropriate, instruct U.S. Customs and Border Protection to impose duties

Impact on Your Products

AD/CVD duties may affect your products if imported into the U.S. Check the International Trade Administration's website for updated information on affected goods, countries of origin, and duty rates.

Ensuring Compliance

Stay informed about AD/CVD duties to ensure compliance and avoid penalties or enforcement actions.

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