Countervailing duties (CVDs) are special tariffs imposed on imported goods that benefit from subsidies provided by foreign governments. These duties help neutralize the unfair pricing advantage and protect domestic industries from injury caused by underpriced imports.
Governments impose CVDs to offset the impact of foreign subsidies that distort fair market competition. The U.S. Department of Commerce conducts investigations to determine if subsidies exist and whether they harm U.S. manufacturers.
CVD rates vary by country and type of product. The duty is calculated to match the benefit received by the foreign exporter, effectively eliminating the price distortion caused by subsidies.
Whether CVDs apply depends on the product type and country of origin. To check if your goods are subject to countervailing duties, refer to the International Trade Administration (ITA) for official lists and determinations.
