Anti-dumping / Countervailing duty

Antidumping Duties (ADD) are additional tariffs that a domestic government

imposes on foreign imports that are believed to be priced below fair market value.
In the U.S., the Department of Commerce (DOC) often imposes anti-dumping duties
at well over 100% of the Entered Value, in addition to the specific duty rate on the
particular goods being imported. When there is evidence that a foreign company is
selling goods to U.S. Importers at a price that is significantly lower than the
companys production cost, or at a price that is below the producers sales price in
its home market, the DOC will further investigate. If justified, these additional tariffs
will be imposed. This is just one effort to reduce the competitiveness of a foreign
companys product and to help save domestic jobs.
Countervailing duties (CVDs), also known as anti-subsidy duties, are trade
import duties imposed under the World Trade Organization (WTO) rules to neutralize
the negative effects of subsidies.
These duties are imposed after an investigation finds that a foreign country
subsidized its exports to benefit the production, manufacture, or exportation of
goods, thus injuring domestic producers in the importing country.
According to World Trade Organization rules, a country can launch its own
investigation and decide to charge extra duties, provided such additional duties are
in accordance with the GATT Article VI and the GATT Agreement on Subsidies and
Countervailing Measures.
The Department of Commerces Enforcement and Compliance (DOC E&C)
safeguards and improves the competitive strength of U.S. industries against unfair
trade through the enforcement of both the U.S. antidumping duty (ADD) and
countervailing duty (CVD) trade laws.
The department oversees trade agreement compliance and supports the
negotiation of trade agreements with foreign markets. The Department of
Commerces Enforcement and Compliance (OC E&C) also oversees the Foreign
Trade Zone (FTZ) programs.
The DOCs E&C department of Antidumping and Countervailing Duty Operations
enforces U.S. antidumping duty and countervailing duty laws by conducting
investigations and reviews to remedy unfairly traded, dumped, and/or subsidized
imports, and determines the appropriate duties to offset any unfair trade practices.
When the Department of Commerce finds that imported merchandise was sold in
the United States at an unfairly low or subsidized price, in order to level the playing
field for U.S. companies injured by these unfair trade practices, the U.S. Customs
and Border Protection (CBP) becomes responsible for collecting the Anti-dumping
and Countervailing Duties (AD/CVD) and does so in a timely manner.
CBPs Priority Trade Issue for ADD/CVD is to detect and deter circumvention of the
ADD/CVD law, to liquidate final duties timely and accurately, while at the same
time, facilitating legitimate trade.
Products subject to AD/CV duties are very diverse. They can range from goods
such as steel wire and pencils, to items such as ball bearings and lined paper. The
types of goods and why they are being dumped into the market may not be clear
cut, which is a good reason to continually do your research.
Each country and manufacturer may have a specific case number and ADD or CVD
rate for the specific goods being imported and that is assessed at the time of entry.
ACE: The best resource to obtain ADD and CVD case information through is the
U.S. Customs ACE system. Within this system, anyone with an ACE account can
query the HTS # to obtain ADD or CVD information. Work with High Desert CHB
when you need assistance with ACE.
Full listing by country: In addition, the Department of Commerce has a full
listing, by country, which can be accessed online. Further information clarifying
what is included in an ADD or CVD Order through a Scope Ruling initiative that may
have taken place, can also be found online.
ADD CVD handbook: The U.S. International Trade Commission has published
their ADD and CVD handbook with pertinent information including a guide through
the history of ADD/CVD beginnings as well as instructions on how to petition for
relief. The handbooks most recent update was in June 2015.
www.usitc.gov/trade_remedy/documents/handbook.pdf
Documentation requirements: Lastly, its important to know the documentation
requirements prior to importation of any goods with anti-dumping or countervailing
duties. A Reimbursement Certificate should be present at time of Importation and
should be submitted to U.S. Customs on a blanket or a transactional basis.
www.cbp.gov/sites/default/files/documents/guidance_for_cert_3.pdf
In summary, when deciding to import an item or manufacture a product outside of
the U.S., it is imperative to check the HTS # to determine if there will be any
additional or unforeseen duty or fees for that particular product. It may be that a
particular product has been dumped or sold for lower than market value by a
supplier or manufacturer, or a foreign country subsidized the export of that product
and therefore anti-dumping duties or countervailing duties may apply.