Glossary
What is a countervailing duty (CVD)?
A countervailing duty (CVD) is an additional import duty imposed to offset a subsidy granted by a foreign government to its exporters, where that subsidised pricing causes injury to producers in the importing country. |
When is a countervailing duty imposed?
- A countervailable subsidy is identified a government financial contribution conferring a benefit
- The subsidy is specific to an industry or enterprise rather than generally available
- Material injury to a domestic industry is demonstrated, with a causal link to the subsidised imports
Countervailing duty or anti-dumping duty?
Anti-dumping duty targets a company pricing below normal value. Countervailing duty targets the government subsidy sitting behind that price. Both are WTO-sanctioned trade remedies investigated along similar lines, and both can attach to a single consignment with rules to stop the same subsidy being counted twice.
What importers should check
CVD rates are producer-specific, so the named manufacturer decides the rate not the commodity code alone. Rates are also revisable at administrative review, and in the United States the final liability assessed can differ from the cash deposit paid at entry, sometimes years later.
iCustoms checks trade remedy measures against commodity code and supplier before the entry is filed. |
