INTERNATIONAL TRADE LAW
Anti-Dumping and Countervailing Duties: Cheatsheet
Anti-dumping and countervailing duties (AD/CVD) are extra U.S. import duties that offset two specific unfair-trade problems: foreign goods sold here below fair value (dumping), and foreign goods that benefit from a government subsidy. If your product is covered by an AD/CVD order, you pay these duties on top of normal tariffs — and as the U.S. importer of record, you, not the foreign seller, are on the hook for them.
This cheatsheet is a quick reference. For a deeper walk-through, see our explainers on anti-dumping vs. countervailing duties and the AD/CVD compliance checklist.
The two duties at a glance
| Anti-dumping (AD) | Countervailing (CVD) | |
|---|---|---|
| Targets | Goods sold in the U.S. below “fair value” | Goods that received a foreign government subsidy |
| Statute | Section 731, Tariff Act of 1930 (19 U.S.C. § 1673) | Section 701, Tariff Act of 1930 (19 U.S.C. § 1671) |
| Duty is based on | The “dumping margin” — normal value minus U.S. price | The amount of the countervailable subsidy |
| Aimed at | The exporter’s pricing behavior | The foreign government’s support |
The two often run side by side: a single petition can allege both dumping and subsidization on the same product from the same country.
Who decides: two agencies, two questions
A U.S. AD/CVD order only issues if two federal agencies both answer “yes” to their separate questions:
- The U.S. Department of Commerce (International Trade Administration) decides whether dumping or subsidization is occurring and, if so, calculates the rate.
- The U.S. International Trade Commission (USITC) decides whether those imports cause, or threaten, material injury to a U.S. industry.
If either agency makes a negative finding, no order issues. This dual test is why AD/CVD cases turn on economics and industry data as much as on law.
How a case moves
The process is petition-driven — a domestic industry (or a union) files, simultaneously, with both Commerce and the ITC. From there it runs on statutory deadlines:
| Stage | Roughly when | Who acts |
|---|---|---|
| Petition filed | Day 0 | Domestic industry |
| Initiation | ~20 days | Commerce |
| Preliminary injury | ~45 days | ITC |
| Preliminary duty determination | A few months in | Commerce |
| Final determinations | Later in the year | Commerce, then ITC |
| Order issued | After both final “yes” findings | Commerce directs CBP |
Once an order is in place, it can stay in force for years and is tested every five years in a “sunset” review.
What importers actually pay
The United States uses a retrospective duty-assessment system, and this trips up a lot of importers. Here is what that means in practice:
- At entry, you post a cash deposit of estimated AD/CVD at the current rate.
- The final amount is not set until later. Commerce can run an annual administrative review that recalculates the rate for entries during a given period. The final rate may be higher, lower, or unchanged.
- CBP then settles up. U.S. Customs and Border Protection assesses the final duty, bills you for any shortfall (with interest), or refunds any overpayment (with interest).
Because liability can rise after the goods are already sold, importers of covered products should price in that uncertainty and keep clean records tying each entry to the correct case number and rate.
Where the WTO fits
AD/CVD measures are permitted, but disciplined, by World Trade Organization rules: the Anti-Dumping Agreement (implementing Article VI of GATT 1994) and the Agreement on Subsidies and Countervailing Measures. These set the ground rules for how members may investigate and impose duties, and they are the backdrop for the trade disputes that periodically reach the WTO.
Practical pointers for importers
- Check the scope language, not just the product name. Orders are defined by detailed scope descriptions; whether your specific item is covered can be a close call worth a formal scope ruling.
- Country of origin drives everything. Routing goods through a third country to dodge an order (“transshipment”) is treated as evasion and carries serious penalties.
- The exporter’s rate may not be yours. Rates are often company-specific; using the wrong supplier can change your duty exposure dramatically.
FAQ
Who pays AD/CVD duties — the foreign exporter or the U.S. importer? The U.S. importer of record pays. The duties are collected at entry as cash deposits and reconciled later.
Are anti-dumping and countervailing duties the same as Section 301 or other tariffs? No. AD/CVD are product- and country-specific remedies for unfair pricing or subsidies, set through formal investigations. They are separate from broad tariff actions and are added on top of ordinary duties.
How long does an AD/CVD order last? Indefinitely, in principle. Orders are reviewed every five years in a sunset review and are revoked only if Commerce and the ITC find that removing them would not lead to renewed dumping/subsidization and injury.
Can I get certainty on whether my product is covered? Yes. You can request a scope ruling from Commerce. Getting classification and scope right before you import is far cheaper than fighting a retroactive duty bill.
Importing goods that might fall under an AD/CVD order? Reidel Law Firm delivers a flat-fee import/export compliance memo that maps your products, classifications, and duty exposure in plain English, with direct attorney access. Request a flat-fee compliance memo →
