Anti-dumping and countervailing duties explained

Anti-dumping duties (ADD) and countervailing duties (CVD) are extra tariffs imposed on imported goods to protect domestic industries from unfair trade practices.

Anti-Dumping Duties

Dumping occurs when a manufacturer exports a product at a price lower than its normal value in the home market. If a domestic industry proves material injury from dumped imports, the importing country's trade authority can impose an ADD equal to the dumping margin.

Countervailing Duties

CVDs offset the advantage gained from government subsidies in the exporting country. If subsidized imports cause injury to a domestic industry, the importing country can impose a CVD equal to the subsidy amount.

How Investigations Work

1. A domestic industry files a complaint with evidence of dumping/subsidies and injury.
2. The trade authority investigates (usually 12–18 months).
3. Provisional duties may be imposed during investigation.
4. If confirmed, definitive duties are imposed, typically for 5 years and subject to review.

Impact on Your Trade

Before quoting a price, check whether your product faces ADD or CVD in the destination market. Faktorist flags products with known anti-dumping measures and shows the additional duty rate in the cost calculator.

Common sectors affected include steel, textiles, chemicals, and ceramics.