Anti-Dumping/Countervailing Duties

Navigating the complexities of anti-dumping duties (ADD) and countervailing duties (CVD) can be a challenge. This page is intended to provide a high-level overview of anti-dumping and countervailing duties (AD/CVD) and resources to learn more.

 

 

What is AD/CVD?

At a high level, dumping occurs when foreign companies can produce items at a lower price than those items would sell domestically, or below cost of production (often with assistance from a foreign government). Countervailable subsidies are a subset of financial assistance provided by a foreign government to aid production and exportation of goods for lower cost. ADD and CVD are types of trade remedies that exist to help protect U.S. industries from the harm that such activities can cause, and attempt to “level the playing field” so U.S. industry can remain competitive with goods being imported. Resources that provide more detailed information about the AD/CVD programs in the U.S.:

AD/CVD Management for Importers

How can an importer know what items might be subject to additional duties? How would an importer manage that information? Here are some actions to help get you started.

Determine if Any of Your Commodities Are Potentially Subject to an AD/CVD Case

If you’re importing goods into the U.S., chances are you are familiar with HTS codes – numbers assigned to commodities to help CBP identify those goods. Potential AD/CVD case numbers are “attached” to these cases electronically. Here’s how you can find that information:

 

Understand the Scope of a Case and Determine if It Applies to Your Commodities

AD/CVD cases can be extremely specific, so it’s important to understand exactly what a case covers, and also the specifications of your commodities. Here are some suggestions and resources to help.

Update Your Records

For those commodities that do have potential cases “attached”, it is important to document your findings – whether it is determined the items are subject to a case or not. You may want to consider updating parts databases or databases that generate commercial documents, storing your research, or building your research practices into an import compliance manual for your company or operation. 

Communicate With Your Customs Broker

If you find that AD/CVD cases do apply to your commodities, you should ensure your Importer Bond amount is sufficient to include the additional anti-dumping/countervailing duties. It is also critical to confirm the bond is approved to cover such activity, as entries subject to AD/CVD can be at much higher risk of increased duty bills and typically remain unliquidated longer than standard consumption entries, which can create stacking exposure.

Additionally, you may need to set up reimbursement certificates (in situations where ADD applies).

Make sure you can also provide that information to your Customs Broker. When filing a declaration with CBP, they will need to know whether or not any AD/CVD cases apply to your commodities. 

Interested In Learning More?

 

Check out the recording of a previous AD/CVD webinar hosted by our subject matter experts. Learn about:

  • The basics of AD/CVD
  • What are dumping and subsidization
  • How the U.S. Government determines if dumping or subsidization is occurring
  • How to know if your commodities are subject to AD/CVD
  • Resources for AD/CVD

 

Watch here

Resources

Government

ITA

CBP

Congressional Research Service 

Expeditors

Brokerage Operations

Newsflash Blog

Tradewin

Tradeflow

Podcast

Global Customs: Anti-Dumping & Countervailing Duties

Stephanie Holloway, Regional Customs Manager for The Americas, gives a crash course on anti-dumping and countervailing duties: how they're alike, how they work, what importers need to do to avoid overpaying, and much more.


 

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