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.
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
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.
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
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.
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.
If you find that AD/CVD cases do apply to your commodities, there are a few implications for your importer bond that should be considered.
Your importer bond must be approved to cover AD/CVD activity, as these entries can be at much higher risk of increased duty bills, and they typically remain unliquidated longer than standard consumption entries. This can create stacking exposure.
The bond amount must also be sufficient to cover the additional anti-dumping/countervailing duties.
Check out the recording of a previous AD/CVD webinar hosted by our subject matter experts. Learn about:
