Antidumping and Countervailing Duties

Antidumping Duties (ADs) and Countervailing Duties (CVDs) are additional taxes applied to imported goods in the USA to protect domestic manufacturing from unfair trade practices.

CVDs are applied to imported goods and materials when their manufacturing processes are subsidized by a foreign government, resulting in an unfair market advantage through less-than-fair-value pricing. ADs, on the other hand, are applied when a foreign manufacturer sells products in the US at a less-than-fair value to undercut US manufacturers. 

How Are Antidumping and Countervailing Duties Calculated?

Countervailing duties are calculated at the country-specific level, matching the foreign government’s subsidy amount on imports. Antidumping duties are made as company-specific calculations, making up the difference between the manufacturer’s or supplier’s price and the domestic fair market value.

Reporting Unfair Trade Practices 

Supply chain professionals can file petitions with either the US International Trade Commission or the US Department of Commerce if they discover a foreign manufacturer selling below fair market prices.