Dumping occurs when foreign manufacturers sell goods in the U.S. at less than fair value. Countervailing cases are when a foreign government provides enough subsidies and tax benefits for their manufacturers to sell their goods more cheaply than U.S. manufacturers. Both of these occurrences lead to foreign undercutting of U.S. manufacturers’ prices.
How are these duties determined?
Anti-dumping duties (AD) are calculated at a company-specific level, where the actual duty amount makes up for the gap between foreign manufacturer pricing and fair market value.
Countervailing duties (CVD) are determined at a country-specific level, and the duty rates counteract the subsidy or foreign government assistance’s value to exactly level the playing field.
Are your products impacted by these duties?
ADs and CVDs are dependent on the country of origin and type of product. For a comprehensive and official list of goods affected, visit the International Trade Administration’s website here.