Dumping is when foreign manufacturers sell goods in the United States for less than what is deemed to be fair market value. Antidumping duty (ADD) is a tariff rate that is levied to level the playing field for U.S. industry. Antidumping cases are company specific. Therefore, known foreign manufacturers have specific case numbers and duty rates assigned. If the manufacturer does not have an individual case number, then the ‘all others’ case rate applies.
Countervailing duty (CVD) cases are similar to antidumping cases, but are established when foreign governments provide assistance, such as subsidies and tax breaks, to manufacturers that export into the U.S. market. These cases are country specific.
ADD and CVD cases are initiated when U.S. businesses file petitions with the International Trade Commission (ITC) claiming that financial injury is occurring as a result of these practices. If the ITC finds substantiating evidence, The Department of Commerce (DOC) will conduct an investigation.
If the DOC determines that either a commodity is being “dumped” into the U.S. or a foreign government is subsidizing a particular product or industry, they instruct US Customs and Border Protection to suspend liquidation of the subject entries. Once given final instruction from the DOC, CBP liquidates the entries.
Documentation Requirements
If your company imports goods that are subject to ADD or CVD, there are two components needed for the entry in the United States:
- Manufacturer name and ADD/CVD case number must be on the commercial invoice
- A non-reimbursement statement, completed by the US party, must be completed and signed by an officer of the company to prevent doubling of duties at the time of liquidation
How do I know if any of my Company’s US Imports are Subject?
Hundreds of commodities from dozens of countries are subject to ADD and/or CVD.
The best tool for searching affected products and countries is the US Customs and Border Protection ADD CVD Search website. This site offers search functionality by keyword, country, or case number. It is updated daily with the latest anti-dumping and countervailing duty messages.
If your commodity is listed on the ADD CVD search, the next step is to read the scope information. The scope information shows the details of each ADD or CVD case, details about the case, and any possible exceptions for commodities that were previously ruled out.
Finally, the latest news and information about recently opened investigations and cases can be found on the United States International Trade Commission’s (USITC) website: http://www.usitc.gov/