Antidumping (AD) and countervailing (CVD) duties are additional tariffs imposed on imported goods to offset unfair foreign pricing or government subsidies. They stack on top of every other tariff, including MFN rates, Section 301, Section 232, and Section 122. Combined rates on some products from China exceed 300%. There are over 600 active AD/CVD orders in effect as of early 2026. If your product is covered by an order you did not know about, you could face a retroactive duty bill that wipes out your entire margin. Here is how AD/CVD works, how to check if your products are affected, and what to do if they are.
Key Takeaways
AD/CVD duties are separate from and in addition to all other tariffs. A product can face MFN duty + Section 301 + Section 232 + AD duty + CVD simultaneously.
There are over 600 active AD/CVD orders in the United States as of early 2026. Over 150 of those cover steel and aluminum products alone.
AD/CVD rates can range from under 1% to over 265% depending on the product, country, and specific foreign producer. Combined AD + CVD rates on some Chinese steel products exceed 300%.
The U.S. uses a retrospective assessment system. The cash deposit rate you pay at entry is an estimate. The final rate is determined months or years later through administrative review. You could owe significantly more than you deposited.
AD/CVD duties are not eligible for duty drawback. Unlike Section 301 or Section 122, you cannot recover AD/CVD payments through the drawback program.
Failing to identify and report an active AD/CVD order on your entries is a violation that can result in penalties, criminal investigation referrals, and seizure of goods.
China is the country most frequently subject to AD/CVD orders, followed by India, South Korea, Vietnam, and Turkey.
What Are Antidumping Duties?
Antidumping duties are additional tariffs imposed when the U.S. Department of Commerce determines that a foreign producer is selling goods in the U.S. market at "less than fair value." This means the export price to the United States is lower than the price in the producer's home market or lower than the cost of production.
The short answer is: antidumping duties penalize foreign companies for selling their products in the U.S. too cheaply, undercutting American producers.
Key definition: Dumping margin is the percentage difference between the normal value of the goods (typically the home market price or cost of production) and the export price to the United States. This margin becomes the AD duty rate.
For non-market economies like China, Commerce uses surrogate country data to calculate normal values. This methodology frequently produces very high dumping margins, which is why AD rates on Chinese products are often dramatically higher than rates on similar products from market economy countries.
What Are Countervailing Duties?
Countervailing duties are additional tariffs imposed when the U.S. Department of Commerce determines that a foreign government is subsidizing its domestic producers. Subsidies can include direct cash payments, tax exemptions, below-market loans, discounted raw materials from state-owned enterprises, or preferential energy pricing.
The short answer is: countervailing duties penalize foreign governments for giving their producers an unfair cost advantage through subsidies.
Key definition: Net subsidy rate is the benefit the foreign producer receives from government subsidies, expressed as a percentage of the export price. This rate becomes the CVD.
A single product can be subject to both AD and CVD orders simultaneously. The rates are cumulative. A Chinese steel product could face a 25% Section 232 tariff plus a 265% AD rate plus a 15% CVD rate, totaling over 300% in combined duties.
How Do AD/CVD Duties Stack With Other Tariffs?
This is where the financial exposure becomes alarming for importers who have not checked their products against active orders.
| Duty Layer | Example Rate | Eligible for Drawback? |
|---|---|---|
| MFN base rate | 5% | Yes |
| Section 301 (China) | 25% | Yes |
| Section 232 (steel) | 25% | No |
| Section 122 surcharge | 10% | Yes |
| Antidumping duty | 80% | No |
| Countervailing duty | 15% | No |
Hypothetical total
160%
AD/CVD duties are assessed in addition to every other applicable duty. They are not subject to any cap, exemption, or preference program. USMCA does not exempt goods from AD/CVD orders. Free Trade Zone status does not exempt goods from AD/CVD orders. There is no mechanism to avoid AD/CVD duties other than not importing the covered product from the covered country.
How Does the Retrospective Assessment System Work?
The U.S. AD/CVD system is retrospective, which means the final duty rate is not determined at the time of entry. Instead, the process works in two stages.
At entry: The importer deposits estimated AD/CVD duties based on the cash deposit rate established from the most recent completed administrative review (or the original investigation rate if no review has been completed). This deposit is collected by CBP at the time of entry, just like other duties.
After administrative review: The Department of Commerce conducts annual administrative reviews of active orders. During these reviews, actual transaction data from the review period is analyzed to calculate updated duty rates. Reviews typically take 12 to 18 months to complete. After the review, Commerce issues final rates. If the final rate is higher than the deposit rate, CBP sends the importer a bill for the difference plus interest. If the final rate is lower, the importer receives a refund.
The short answer is: you pay an estimate at the time of import, and the real bill (or refund) comes one to three years later. The final rate can be dramatically different from what you deposited.
This creates a unique financial planning challenge. Importers of AD/CVD merchandise should reserve funds (typically 10% to 20% above the estimated deposit) as a contingency against potential rate increases at liquidation.
Important: A cash deposit rate of zero does not mean your product is free of AD/CVD obligations. A zero rate means the last calculated rate was zero. You must still report the AD/CVD case information on your entry, and a subsequent review could establish a higher rate, resulting in a bill.
How Do You Check If Your Products Are Subject to AD/CVD Orders?
This is the question every importer must answer before placing a purchase order for goods from any foreign supplier.
Step 1: Search the Department of Commerce AD/CVD case database at trade.gov. You can search by product description, HTS code, or country of origin. The database lists all active orders, the covered products, the countries and specific producers subject to the order, and the current deposit rates.
Step 2: Search CBP's AD/CVD module in ACE, which contains the case numbers, deposit rates, and scope descriptions for all active orders.
Step 3: Check the scope of the order carefully. AD/CVD orders are defined by detailed scope language, not just an HTS code. Two products classified under the same HTS heading may have different AD/CVD treatment depending on their physical characteristics, end use, or method of manufacture. The Department of Commerce regularly conducts scope inquiries to determine whether specific products fall within an existing order.
Step 4: Verify the specific producer. Many AD/CVD orders have different rates for different foreign producers. A producer who cooperated with the investigation may have a rate of 5%, while a non-cooperating producer may face the "all others" rate of 80% or higher. If your supplier is not specifically listed, the all-others rate typically applies.
Step 5: Consult with a customs broker or trade counsel for any product where AD/CVD exposure is unclear. The cost of a professional opinion is negligible compared to the cost of a retroactive duty assessment.
What Are the Most Common AD/CVD Mistakes Importers Make?
1. Not Knowing an Order Exists
This is the most expensive mistake. Over 600 orders are active. They cover steel, aluminum, nails, pencils, plastic bags, shrimp, tires, tissue paper, wooden furniture, solar panels, honey, pasta, and hundreds of other products from dozens of countries. Many importers assume AD/CVD only applies to industrial metals. It does not. A pasta importer from Italy, a shrimp importer from Vietnam, and a honey importer from Argentina are all subject to AD/CVD orders.
2. Relying on the Customs Broker's System to Flag the Order
While brokers should flag AD/CVD products, their systems are not always current with every scope ruling and rate change. CBP's own guidance states that "it is the importer's duty and responsibility to report if their product is subject to AD and/or CVD." Relying solely on your broker's automated flagging without independent verification is a compliance gap.
3. Failing to Report a Zero Deposit Rate
Some importers assume that a zero deposit rate means the product is not subject to AD/CVD and therefore do not report the case on their entries. This is wrong. A zero rate is still an active case. Failing to report it is a violation, and a subsequent administrative review could establish a rate above zero, creating a retroactive bill.
4. Not Reserving Funds for Retrospective Assessment
The cash deposit is an estimate. Final rates can increase substantially after administrative review. Importers who spend down to their deposit amount without reserving a contingency can face unexpected bills that create serious cash flow problems.
5. Attempting to Evade Through Transshipment or Misclassification
Shipping goods through a third country to avoid an AD/CVD order (transshipment) or classifying goods under a different HTS code to fall outside the scope (misclassification) are both forms of evasion that can result in severe penalties, criminal investigation referrals, and seizure of goods. CBP and Commerce actively investigate circumvention, and the consequences are far more severe than simply paying the duty.
What Is a Scope Inquiry and Why Does It Matter?
A scope inquiry is a determination by the Department of Commerce on whether a specific product falls within the scope of an existing AD/CVD order. Importers, foreign producers, or domestic industries can request scope inquiries when there is ambiguity about whether a particular product is covered.
The short answer is: if you are not sure whether your product is subject to an AD/CVD order, a scope inquiry provides a binding determination from Commerce.
Scope inquiries are critical when your product is similar to but not identical to the products described in the order, when your product has been modified or redesigned in ways that may take it outside the scope, or when you are sourcing from a new country where the product has not previously been subject to an order.
What Happens to AD/CVD Entries During the IEEPA Refund Process?
Entries subject to antidumping or countervailing duties face additional complexity in the IEEPA refund process. Under CAPE Phase 1, AD/CVD entries with a suspended or extended liquidation status will have IEEPA codes removed, but CBP will not liquidate or refund those entries until the Department of Commerce lifts suspension and issues liquidation instructions in the normal course.
The short answer is: if your entries are subject to both IEEPA tariffs and AD/CVD orders, IEEPA refunds on those entries will take longer to process than non-AD/CVD entries. See our IEEPA refund guide for details on the CAPE system and Phase 1 eligibility.
Frequently Asked Questions
What are antidumping and countervailing duties?
Antidumping duties are additional tariffs imposed when a foreign producer sells goods in the U.S. at less than fair value (below home market price or cost of production). Countervailing duties are additional tariffs imposed to offset subsidies provided by foreign governments to their domestic producers. Both are administered by the Department of Commerce and enforced by CBP.
How high can AD/CVD rates be?
There is no statutory cap. AD rates commonly range from 7% to over 265%. CVD rates typically range from 2% to 50%. Combined AD + CVD rates on some Chinese products exceed 300%. These rates stack on top of all other applicable duties.
How many active AD/CVD orders are there?
Over 600 as of early 2026. The number continues to grow as new investigations are initiated. Steel and aluminum products account for over 150 orders. China is the most frequent target, followed by India, South Korea, Vietnam, and Turkey.
Do AD/CVD duties stack on top of Section 301 and Section 232 tariffs?
Yes. AD/CVD duties are assessed in addition to MFN rates, Section 301, Section 232, and Section 122. There is no offsetting or netting. All layers are cumulative.
Are AD/CVD duties eligible for duty drawback?
No. Under 19 U.S.C. § 1558 and 19 CFR § 191.3(b)(3), AD/CVD duties are explicitly excluded from the drawback program. You cannot recover AD/CVD payments through drawback, even if the goods are subsequently exported.
What is the cash deposit rate?
The cash deposit rate is the estimated AD/CVD duty rate that importers must pay at the time of entry. It is based on the most recent completed administrative review or the original investigation rate. The final rate is determined later through a retrospective administrative review process.
Can the final rate be higher than the deposit rate?
Yes. Administrative reviews can increase or decrease the rate. If the final rate is higher, the importer owes the difference plus interest. If lower, the importer receives a refund. Reviews typically take 12 to 18 months.
How do I check if my product is subject to an AD/CVD order?
Search the Department of Commerce AD/CVD database at trade.gov by product description, HTS code, or country of origin. Also check CBP's AD/CVD module in ACE. For ambiguous cases, consult with a licensed customs broker or trade counsel, or request a formal scope inquiry from Commerce.
Does USMCA exempt goods from AD/CVD duties?
No. AD/CVD orders apply regardless of trade agreement status, FTZ status, or any other preference program. There is no mechanism to avoid AD/CVD duties other than sourcing the product from a country or producer not covered by the order.
What happens if I do not report an AD/CVD order on my entries?
Failing to identify and report an active order is a violation that can result in monetary penalties exceeding several times the lost revenue, criminal investigation referrals, seizure and forfeiture of goods, and increased bond requirements from your surety.
How often do AD/CVD rates change?
Rates are reviewed annually through administrative reviews conducted by the Department of Commerce. Rates can also change through sunset reviews (conducted every five years to determine whether the order should continue), new shipper reviews, and scope inquiries.
What products are most commonly subject to AD/CVD orders?
Common categories include steel and aluminum products (nails, pipe, wire, sheet, plate), solar panels and cells, shrimp, wooden furniture, tires, plastic bags, tissue paper, pasta, honey, chemicals, and many industrial components. The list is extensive and covers products from dozens of countries.
This guide reflects U.S. AD/CVD law and CBP enforcement practices as of April 3, 2026. Active orders, deposit rates, and scope determinations are subject to change through administrative reviews, new investigations, and Commerce Department rulings. Importers should verify AD/CVD status for their specific products and consult with a licensed customs broker or trade counsel. For related topics, see our guides on tariff stacking, HTS classification errors, customs audits, and IEEPA refunds.
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