Definition
Antidumping duties (AD) are imposed on imported goods sold in the United States at less than fair market value — essentially, when a foreign manufacturer sells products here at prices lower than in their home market. Countervailing duties (CVD) target imports that benefit from subsidies provided by a foreign government, such as grants, tax breaks, or below-market financing.
Both AD and CVD are imposed on top of normal duties and can push total duty rates well past 200%.
Why It Matters for Importers
AD/CVD orders affect thousands of products across hundreds of HTS codes. If your product falls under an active AD/CVD order, you could face duty rates that fundamentally change the economics of your supply chain. The U.S. Department of Commerce maintains and periodically reviews these rates, meaning they can change with each annual administrative review.
The consequences of ignoring AD/CVD are severe. Importers who fail to declare AD/CVD-covered merchandise face retroactive duty assessments, penalties, and potential criminal charges for evasion under the Enforce and Protect Act (EAPA).
Key Details
- Retroactive liability: AD/CVD duties are assessed retroactively. You deposit an estimated rate at entry, but the final rate is determined during annual reviews — sometimes years later.
- Scope rulings: If you're unsure whether your product is covered by an AD/CVD order, you can request a scope ruling from Commerce.
- Country-specific rates: Different manufacturers and countries have different AD/CVD rates for the same product.
- Evasion enforcement: CBP actively investigates AD/CVD evasion through transshipment and misclassification.
AD/CVD exposure is one of the most significant risks in importing. Read our detailed guide on antidumping and countervailing duties.
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