AD/CVD Duties: What Importers Need to Know

Anti-Dumping Duties (AD) and Countervailing Duties (CVD) are additional tariffs imposed on imported goods when the US Department of Commerce determines that foreign manufacturers are selling below fair market value (dumping) or receiving unfair government subsidies. These duties can range from a few percent to over 200%.

How AD/CVD Works

• Investigation: US industry files a petition claiming unfair trade practices
• Preliminary determination: Commerce sets preliminary duty deposit rates
• Final determination: Final deposit rates are established
• Annual reviews: Deposit rates are updated yearly based on actual dumping margins
• Liquidation: Final duty amounts are assessed—you may owe more or receive a refund

Commonly Affected Products

Hundreds of active AD/CVD orders cover products from dozens of countries. The most commonly encountered include:

• Steel and aluminum products (multiple countries)
• Shrimp from India, Vietnam, China, Thailand
• Wooden bedroom furniture from China
• Softwood lumber from Canada
• Solar panels and cells
• Tires from multiple countries

The Liquidation Risk

AD/CVD entries are not liquidated for years after importation. When Commerce completes its annual review, the final duty rate may be higher or lower than the deposit rate. If higher, you owe the difference with interest. This retroactive exposure can be devastating—importers have received bills for hundreds of thousands of dollars years after importation.

Evasion & Penalties

CBP actively investigates AD/CVD evasion through the EAPA (Enforce and Protect Act) process. Transshipping goods through third countries to avoid AD/CVD duties is illegal and results in severe penalties, seizure of goods, and potential criminal prosecution.