last update: August 09, 2012    

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Antidumping (AD) and Countervailing Duty (CVD)

Petition Counseling and Analysis Unit


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  Site Index
      What is Dumping?    
      What is a Countervailable Subsidy?    
      How is Dumping or Subsidization Remedied?    
      What is the Role of the International Trade Commission?    
      What Relief is the Result of an Antidumping or Countervailing Duty Investigation?    
      How Long Does it Take for Antidumping or Countervailing Duty Orders to Be Issued?    
      What Are the Requirements for Filing an Antidumping or Countervailing Duty Petition?    


What is Dumping?     top  

Dumping occurs when a foreign producer sells a product in the United States at a price that is below that producer's sales price in the country of origin ("home market"), or at a price that is lower than the cost of production. The difference between the price (or cost) in the foreign market and the price in the U.S. market is called the dumping margin. Unless the conduct falls within the legal definition of dumping as specified in U.S. law, a foreign producer selling imports at prices below those of American products is not dumping.


What is a Countervailable Subsidy?     top  

Foreign governments subsidize industries when they provide financial assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, credits against taxes, and loans at terms that do not reflect market conditions. The statute and regulations establish standards for determining when a subsidy has been conferred. The amount of subsidies the foreign producer receives from the government is the basis for the subsidy rate by which the subsidy is offset, or "countervailed," through higher import duties.


How is Dumping or Subsidization Remedied?     top  

If a U.S. industry believes that it is being injured by unfair competition through dumping or subsidization of a foreign product, it may request the imposition of antidumping or countervailing duties by filing a petition with both the Department of Commerce and the United States International Trade Commission. Enforcement and Compliance investigates foreign producers and governments to determine whether dumping or subsidization has occurred and calculates the amount of dumping or subsidization.


What is the Role of the International Trade Commission?     top  

The International Trade Commission determines whether the domestic industry is suffering material injury as a result of the imports of the dumped or subsidized products. The International Trade Commission considers all relevant economic factors, including the domestic industry's output, sales, market share, employment, and profits. For further information on the International Trade Commission's injury investigation, see http://www.usitc.gov. Both the International Trade Commission and the Department of Commerce must make affirmative preliminary determinations for an investigation to go forward.


What Relief is the Result of an Antidumping or Countervailing Duty Investigation?     top  

If both Commerce and the International Trade Commission make affirmative findings of dumping and/or subsidization and injury, Commerce instructs the U.S. Customs Service to assess duties against imports of that product into the United States. The duties are assessed as a percentage of the value of the imports and are equivalent to the dumping and subsidy margins, described above. For example, if Commerce finds a dumping margin of 35%, the U.S. Customs Service will collect a 35% duty on the product at the time of importation into the United States in order to offset the amount of dumping. Information on the U.S. Bureau of Customs and Border Protection may be found at http://www.cbp.gov.


How Long Does it Take for Antidumping or Countervailing Duty Orders to Be Issued?     top  

If both the International Trade Commission and the Department of Commerce make affirmative preliminary determinations (within 190 days of initiation of the antidumping investigation, or 130 days for a countervailing duty investigation) importers are required to post a bond or cash deposit to cover an estimated amount for the duties which would be collected in the event that an AD or CVD order is issued upon the completion of the investigations. Typically, the final phases of the investigations by the Department of Commerce and the International Trade Commission are completed within 12 to 18 months of initiation.


What Are the Requirements for Filing an Antidumping or Countervailing Duty Petition?     top  

Petitions may be filed by a domestic interested party, including a manufacturer or a union within the domestic industry producing the product which competes with the imports to be investigated. To ensure that there is sufficient support by domestic industry for the investigation, the law requires that the petitioners must represent at least 25% of domestic production and 50% of the domestic production produced by that portion of the industry expressing support for, or opposition to, the petition. The statute requires the petition to contain certain information, including data about conditions of the U.S. market and the domestic industry, as well as evidence of dumping or unfair subsidization.

Antidumping and countervailing duty trade remedies have been successfully pursued by a variety of domestic industries, including producers of steel, industrial equipment, computer chips, agricultural products, textiles, chemicals, and consumer products. Both the Department of Commerce and the International Trade Commission have staff available to assist domestic industries in deciding whether there is sufficient evidence to file a petition for antidumping or countervailing duty investigations. The staff may also assist eligible small businesses with the filing process.

For further information, please see How to File a Petition.     top  


Note: For general information purposes only. When interpreting and applying the law, please refer to the Tariff Act of 1930,
as amended, (19 U.S.C. 1671-1671h, 1673-1673h) and the related regulations in Title 19 of the Code of Federal Regulations.
Counseling Assistance Hotline: (202) 482-1255 AD/CVD Petition Hotline (recorded update of recent filings): (202) 482-0430


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United States Department of Commerce . International Trade Administration . Enforcement and Compliance . 1401 Constitution Ave. N.W. Washington DC 20230
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