News & Press

May 16th 2024

Rogers & Brown 

Written By Beth Morris, VP of Compliance at Rogers & Brown 

How Do I Know If My Merchandise is Subject to Antidumping (AD) or Countervailing Duties (CVD)?

Whether you’re new to importing or an experienced importer bringing in a new product, it’s important to research and understand your expenses before shipping goods to the U.S. Antidumping and countervailing cases are on the rise, as well as enforcement. You must know if they apply to your merchandise, and this article is here to help you.

What are antidumping and countervailing duties?

Antidumping duties are imposed on imported merchandise sold below its fair market value, threatening domestic industries.

Countervailing duties are imposed on imported merchandise to offset subsidies or financial assistance provided to foreign companies by their governments.

Determining whether your merchandise is subject to antidumping (AD) and/or countervailing (CVD) duties can be complex and often requires professional/legal advice.

Below are some suggested steps you can take:

1. Verify your product’s harmonized tariff classification. Suppose you are unsure and importing for the first time. In that case, you might consider filing for a binding ruling with U.S. Customs and Border Protection (CBP) since your tariff number determines tariff rates and additional duties, including AD and/or CVD duties. However, please know that your merchandise may still fall under the scope of an order based on the description.

2. Review the scope of the antidumping and/or countervailing order(s) to determine if your merchandise falls under the scope of the order. You can find these orders in several places, such as https://access.trade.gov/ADCVD_Search.aspx. You can also contact your current broker and request a copy of the order. You can search using your Harmonized Tariff Schedule (HTS) number or product commodity.

3. Research previous cases related to similar merchandise in your industry.

4. Given the complexity of some of these orders and the potential financial implications, it is advisable to seek professional guidance if you are unsure if the order applies to your merchandise.

5. Stay informed of trade developments regarding your merchandise. One way to be informed is by reaching out and establishing a solid relationship with a trusted Customs broker or trade consultant who specializes in their industry and can provide valuable expertise to keep you up to date. Also, accessing government websites such as the S. Customs and Border Protection (CBP), the U.S. International Trade Commission (USITC), and the Office of the United States Trade Representative (USTR) can provide up-to-date information on trade policies, tariff rates, and any changes to antidumping or countervailing duty orders.

If you determine that AD/CVD does apply, your broker will need to confirm whether a reimbursement occurred from the origin. If your HTS number could be subject but your specific product is excluded, you must provide a written disclaimer to your Customs broker explaining why the order does not apply.

Remember, the primary aim of antidumping and countervailing duties is to ensure a level playing field for U.S. companies, protecting them from the adverse effects of unfairly traded imported and subsidized merchandise.