Everything Foreign Manufacturers Need to Know About AD/CVD

In order to successfully import goods to this country, there are a number of rules and regulations that must be met. There are different organizations assigned to oversee various aspects of the import/export industry, such as the US Customs and Border Protection (CBP) agency. Other agencies that assist with regulating foreign imports are the International Trade Commission (ITC) and the Department of Commerce (DOC).

These three organizations are particularly important when it comes to enforcing antidumping and countervailing duties (AD/CVD) on foreign manufacturers. It is important to take the time to go over the extent of AD/CVD orders to ensure that your merchandise does not fall under it. If it does, you must take the necessary steps to avoid incurring this penalty.

What Are Antidumping and Countervailing Duties?

Under the Tariff Act of 1930, the United States Department of Commerce implemented a system of rules that affect all foreign manufacturers planning to import their goods into the United States. It essentially requires all international importers to sell their goods at a fair price within the market. If the DOC finds that imported goods have been sold in the US at a subsidized or drastically reduced price, the company that imported the goods will be subject to antidumping and countervailing duties.

The intention of this is to level the playing field for American manufacturers and ensure that the market is not flooded with low-cost competition, ultimately making it impossible for American companies to push their goods in their own country.

This means that if you are a foreign manufacturer and have received subsidies or tax breaks for your government for importing goods into the US at unfairly low prices, you may be subject to AD/CVD.

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How Do I Know If My Merchandise is Subject to AD/CV Duties?

As an international importer of goods into the United States, it is your sole responsibility to make yourself fully aware of the current market for your merchandise. The scope of your merchandise in regards to AD/CVD is at the discretion of the agencies administering the antidumping laws, however, you can refer to different resources to get a better understanding of AD/CVD operations.

  • The Department of Corrections offers Federal Register Notices and Unpublished Decisions so you can review current and past cases.
  • The International Trade Association offers a list of products subject to AD/CVD duties, separated by country.
  • US Customs and Border Protection has a list of Frequently Asked Questions that offers information regarding AD/CVD duties.

Ultimately, as long as you do your homework and check the current duty rates of imported merchandise from your country into the United States, you should be able to avoid any unexpected taxes or fees.

Hire a Customs Broker to Help

A great way to ensure that you don’t miss anything is to hire a Licensed Customs Broker who has experience with international imports. At Promptus LLC, we have a number of qualified Customs Brokers available to help you sort through all the necessary paperwork and regulations to legally import goods into the United States. Contact us today to receive your quote for our services!