Understanding Anti-Dumping and Countervailing Duties

What Are Anti-Dumping and Countervailing Duties?

Anti-dumping duties (AD) and countervailing duties (CVD) are trade remedy mechanisms that the US government uses to protect domestic industries from unfair foreign trade practices. Anti-dumping duties are imposed when a foreign manufacturer sells products in the US at prices below their normal value (typically below what they charge in their home market). Countervailing duties are imposed to offset subsidies that foreign governments provide to their exporters, giving them an unfair price advantage. Together, AD/CVD duties affect billions of dollars of US imports annually.

How AD/CVD Orders Are Established

AD/CVD orders result from a quasi-judicial process involving two agencies: the Department of Commerce (DOC) and the International Trade Commission (ITC). The process begins when a domestic industry files a petition alleging dumping or subsidization. Commerce investigates the margin of dumping or amount of subsidy, while the ITC determines whether the domestic industry has been materially injured. Both findings are required — if either agency makes a negative determination, no duties are imposed. The entire process typically takes 12-18 months.

1. Petition filed: US domestic producers file with Commerce and ITC simultaneously.
2. ITC preliminary injury determination: Within 45 days. If negative, case ends.
3. Commerce preliminary determination: Within 160 days. Preliminary duties begin if affirmative.
4. Commerce final determination: Within 235 days. Sets the final duty rates by company.
5. ITC final injury determination: Within 280 days. If affirmative, AD/CVD order is issued.
6. Annual administrative reviews: Commerce recalculates rates annually based on updated data.

Products Most Commonly Subject to AD/CVD

Certain product categories and countries appear repeatedly in AD/CVD orders. As of 2025, the products most commonly covered include:

• Steel products: Over 150 AD/CVD orders covering hot-rolled, cold-rolled, galvanized, pipe, tube, wire, and structural steel from dozens of countries.
• Aluminum: Sheets, extrusions, foil, and wire from China and several other countries.
• Solar panels: Crystalline silicon photovoltaic cells and modules from China and Southeast Asia.
• Tires: Passenger vehicle and truck tires from China, Thailand, Korea, and others.
• Furniture: Wooden bedroom furniture from China (one of the oldest and largest AD orders).
• Chemicals: Wide range including caustic soda, glycine, saccharin, and various organic chemicals primarily from China.
• Agricultural products: Honey, garlic, crawfish, and shrimp from China and other countries.

How AD/CVD Duty Rates Work

AD/CVD duty rates are specific to each foreign producer/exporter. Companies that cooperate with the investigation receive individual rates based on their actual dumping margins or subsidy levels. Companies that do not cooperate receive an 'adverse facts available' (AFA) rate that is typically much higher — often the highest rate found for any cooperating company. There is also an 'all others' rate for companies not individually investigated. These rates are recalculated annually through administrative reviews.

The Deposit and Liquidation System

Unlike regular customs duties, AD/CVD duties use a deposit-and-liquidation system. At the time of entry, the importer deposits an estimated duty amount based on the applicable rate. After the annual administrative review (which can take 12-18 months), Commerce calculates the actual duty rate for that period. If the actual rate is higher than the deposit, the importer owes additional duties plus interest. If the actual rate is lower, the importer receives a refund. This uncertainty in final duty liability is one of the most challenging aspects of importing AD/CVD merchandise.

EAPA: Combating AD/CVD Evasion

The Enforce and Protect Act (EAPA) of 2015 gave CBP new tools to investigate and combat AD/CVD evasion, particularly transshipment schemes where products are routed through third countries to avoid duties. CBP's Trade Remedy Law Enforcement Directorate (TRLED) investigates allegations of evasion and can impose interim measures within 90 days. Penalties for evasion include the full AD/CVD duty amount, additional penalties up to 4 times the duty, and potential criminal prosecution.

Compliance Requirements for Importers

• Check every product against current AD/CVD orders before importing.
• Identify the specific foreign manufacturer and exporter to determine the applicable rate.
• Declare AD/CVD merchandise on the entry summary and deposit the appropriate estimated duty.
• Maintain records documenting the manufacturer, exporter, and country of origin for at least 5 years.
• Monitor annual administrative review results for rate changes that may affect your deposits.
• If your product might be scope-covered, request a scope ruling from Commerce before importing.
• Report any evasion you become aware of — failure to report can be considered complicity.

Challenging AD/CVD Orders

Importers are not powerless against AD/CVD duties. Options include: participating in administrative reviews to argue for lower rates, requesting scope rulings from Commerce to determine if your specific product is covered by an order, filing changed circumstances reviews if market conditions have shifted, and pursuing sunset reviews (every 5 years) where orders can be revoked if the underlying conditions no longer exist. Importers can also challenge AD/CVD determinations at the US Court of International Trade.

“AD/CVD duties are a fact of life for many import programs. The key is not to avoid them through evasion — that ends badly every time — but to manage them through accurate classification, proper manufacturer identification, and strategic use of the administrative review process.”

— Camtom Team