Antidumping and Countervailing Duties (AD/CVD) Explained

Antidumping duties offset imports sold in the U.S. below fair value. Countervailing duties offset foreign government subsidies. Both are imposed by orders that follow investigations by the Department of Commerce, which sets the rates, and the U.S. International Trade Commission, which decides whether a U.S. industry is injured. They apply to a specific product from a specific country, often at rates far above normal duty, and the final amount owed can change years after entry.

How an order works

• The scope describes the covered product in words. The HTS numbers in an order are for convenience. The written scope controls.
• Each order has a case number, starting with A- for antidumping and C- for countervailing.
• Rates are company-specific, set for named exporters, with an all-others rate for the rest.

Cash deposits and final rates

At entry, the importer pays a cash deposit at the current rate. Liquidation of covered entries is suspended. Commerce can later set a final rate in an administrative review, and the difference is collected or refunded with interest. This is why AD/CVD liability is open-ended until the entries liquidate.

Risks for importers

• Scope mistakes, such as treating a covered product as outside the order.
• Wrong manufacturer or exporter on the entry, which applies the wrong rate.
• Evasion through transshipment or misdeclared origin, which CBP investigates under the Enforce and Protect Act (EAPA).
• Increases in review, which can bring large bills years later.

Frequently asked questions

Are AD/CVD duties eligible for drawback? No. The statute bars drawback of antidumping and countervailing duties.

How do I know if my product is covered? Read the scope of each relevant order and, if unclear, ask Commerce for a scope ruling.

How Caspian checks AD/CVD exposure

Caspian's audit flags entries that may fall under an order and lines where the case number or rate looks wrong. See our trade audit and trade compliance services.

Works Cited:

• 19 U.S.C. 1673, Antidumping duties imposed
• 19 U.S.C. 1671, Countervailing duties imposed
• 19 U.S.C. 1677h, Drawback treatment

This article is general information, not legal advice.