Antidumping and countervailing duties are imposed in order to protect the home market and its domestic producers.

 

When imported goods are sold at a substantially low price compared to its home market or cost of production, it is referred to as "dumping" the product. Dumping creates unfair trade practices for U.S. companies and thus the Department of Commerce, International Trade Commission (ITC), and U.S. Customs and Border Protection (CBP) enforce laws and impose antidumping duties in order to protect domestic industries. The Commerce Department is responsible for the general administration of the laws and determines whether the goods are being sold at less than fair value, whether it has been subsidized, and the rate of duty it will be assessed; ITC assesses the impact of these practices on U.S. industries; and CBP determines the actual duties. To read more about antidumping, please click here.

 

Countervailing duties, also known as anti-subsidy duties, are duties that are imposed in order to offset the negative impact of import subsidies. Import subsidies are established when a foreign goverment provides subsidies, such as tax breaks, to manufacturers that export certain goods to the U.S., therefore allowing them to sell merchandise at a substantially lower price than U.S. manufacturers. In order to prevent financial injuries of U.S. producers, the World Trade Organization enables a country to charge extra duties (countervailing duties) provided that they are aligned with the GATT Artivle VI and the GATT Agreement on Subsidies and Countervailing Measures.

 

DK Express specialists will help you understand the procedures and risks in the case your products are subject to antidumping and countervailing duties.