U.S. Antidumping (AD) & Countervailing Duties (CVD)

US Antidumping & Countervailing Duties

Antidumping and Countervailing Duty Order

  • The Tariff Act of 1930, as amended, (the Act) allows the U.S. to collect antidumping duties (AD) on imported merchandise found to have been sold in the U.S. at "less than fair value", if these sales have caused or are likely to cause material injury to an industry in the U.S. In a similar way, the Act also permits the U.S. to collect a countervailing duty (CVD) to offset any unfair competitive advantage that an exporter might gain over a U.S. producer because of foreign subsidies.

  • If an original AD/CVD investigation results in an affirmative final determination, an AD/CVD rate will be ordered. Each year thereafter, during the anniversary month of the order issue date, interested parties have the opportunity to request an administrative review of that order.

  • An AD/CVD order can be revoked if the administrative review results in a de minimis rate for three consecutive years and no interested party objects to its revocation.

    Sunset Review

  • The URAA (which implements GATT/WTO) requires the U.S. DOC and ITC to conduct a sunset review investigation no later than five years after the issuance of a AD or CVD order or the suspension of an investigation (SA). The investigation will determine whether revocation of the order or termination of the SA would be likely to lead to continuation or recurrence of dumping or countervailable subsidies and injury. Under previous U.S. law, a revocation review was not automatic and could only be requested if no administrative review was conducted for five consecutive years.
  • If the DOC or ITC determines that unfair trade practices are not likely to recur in the absence of the order or SA, or the domestic industry does not agree to participate in the sunset review, the order must be revoked.
  • If the order is not revoked, the sunset review will have no effect on the deposit rate. The next opportunity for a sunset review would be another five years.