Export Compliance Daily is a Warren News publication.

Antidumping and Countervailing Duties (AD/CVD)

Antidumping and Countervailing Duties (AD/CVD) are taxes levied on imported merchandise sold in the U.S. at artificially low or subsidized prices, to level the playing field for U.S. companies. Antidumping Duties result from a foreign industry selling its products at lower than the cost of manufacturing to gain a competitive edge. Countervailing Duties result from subsidies from a foreign government to specific industries or products to gain a competitive advantage abroad. A U.S. company may petition the ITC and Commerce Department to determine whether the goods subject to the petition were sold for less than fair value or benefited from unfair subsidization. If Commerce and the ITC find evidence of subsidization/dumping which has caused injury to a domestic industry, they will direct CBP to suspend liquidation of incoming entries and begin collecting AD/CVD on those entries.