AD/CVD duties can be many times higher than normal tariffs and can apply retroactively. Yet many exporters only hear about them when a buyer suddenly cancels orders. Here is how they work.
Two kinds of trade remedy duty
- Anti-dumping (AD): applied when imports are sold in the US below their "normal value" and injure a US industry.
- Countervailing (CVD): applied when imports benefit from countervailable government subsidies.
How a US case unfolds
- A US industry files a petition.
- The Department of Commerce investigates dumping or subsidies; the US International Trade Commission (ITC) investigates injury.
- Preliminary determinations can require cash deposits on imports.
- Final determinations lead to an order if both agencies find in favour.
- Annual administrative reviews set the final duty for past entries — which can be higher or lower than the deposits.
Who pays?
The US importer of record pays AD/CVD deposits and final duties. Under DDP, that cost sits with the seller side — a key reason to check AD/CVD before quoting. See why the importer of record matters.
Circumvention and evasion
Orders on one country can be extended to products completed in another country from that country's inputs (circumvention), and CBP can investigate evasion through transshipment (EAPA). Vietnam has been involved in such cases for steel, aluminium and wood products — see furniture & plywood, steel origin and aluminium extrusions.
How to protect yourself
- Check current orders and investigations for your product before quoting.
- Document the origin of key inputs and your production process.
- Respond to questionnaires if you are selected — non-responding companies often receive the highest rates.
- Agree contract terms on who bears AD/CVD risk.
Official sources to check
- USITC Harmonized Tariff Schedule (hts.usitc.gov) — base rates and Chapter 99 additional duties
- CBP CSMS messages — implementation guidance for new tariff measures
- Federal Register — proclamations, executive orders and AD/CVD notices
- ITA Enforcement & Compliance — AD/CVD case lists and scope rulings