Countervailing Duties

What are countervailing duties?

Countervailing duties (CVD) are duties intended to protect the U.S. manufacturing industry from foreign goods made cheap by subsidies and tax benefits from foreign governments.

How are countervailing duties determined?

Countervailing duties are determined on a country-specific level, and the duty rates counteract the subsidy or foreign government assistance value to exactly level the playing field.

Will countervailing duties apply to my product?

CV duties are dependent on the country of origin and type of product. For a comprehensive and official list of goods affected, visit the International Trade Administration’s website.

How do countervailing duties affect your landed cost?

In the U.S., the Department of Commerce calculates the subsidy rate, and the International Trade Commission (ITC) decides whether the domestic industry has been injured. U.S. Customs and Border Protection (CBP) collects the duties at entry, on top of regular duties. Rates can differ by exporter, so two suppliers in the same country may face different duties on the same product.

Check whether your product falls under an active order before you buy. Rates are reviewed periodically and can change after you've placed an order. Antidumping duties are a separate remedy that applies when foreign producers sell below fair value.

Back to the full glossary.