What Happens When Your Imports Become Subject to an AD/CVD Investigation?
An antidumping or countervailing duty (AD/CVD) investigation can significantly change the cost of importing goods into the United States. Products that previously entered the country without additional trade remedy duties may suddenly face substantial cash deposit requirements, creating unexpected expenses and uncertainty for importers.
If your products become subject to an AD/CVD investigation, understanding the process, potential financial exposure, and available options is essential to protecting your business.
What Are Antidumping and Countervailing Duties?
Antidumping and countervailing duties are trade remedies designed to address certain unfair trade practices involving imported merchandise.
- Antidumping duties (AD) address products sold in the United States at less than fair value.
- Countervailing duties (CVD) address imports that benefit from certain subsidies provided by foreign governments.
These duties are separate from ordinary customs duties and other applicable tariffs. A product may be subject to both antidumping and countervailing duties, potentially increasing its total import costs substantially.
Two federal agencies play central roles in AD/CVD investigations:
- U.S. Department of Commerce (Commerce): Determines whether dumping or countervailable subsidization exists and calculates applicable margins or subsidy rates.
- U.S. International Trade Commission (USITC): Determines whether the imports materially injure or threaten material injury to a U.S. industry.
Generally, both agencies must make […]
