Antidumping/Countervailing Duties

In the global marketplace, American businesses can be very adversely affected by unfair pricing and government subsidies in other countries. For this reason, the International Trade Administration of the Department of Commerce uses its Import Administration to enforce laws and agreements that protect American businesses from unfair pricing within the United States. This unfair competition with foreign companies and their governments could otherwise be devastating for US businesses. To better understand and work in compliance with International Trade Laws in the state of Massachusetts, a Boston Customs Lawyer such as Paula Connelly can be very beneficial.


When a business sells its products or services in the United States at a cost that is far lower that it sells the products or services in its home country, or much lower than it costs to produce the product or service in the US, that is known as “dumping.”
The dumping margin refers to the difference in price between the foreign market’s cost and the US market’s cost. Companies can be caught off guard when a product that they import is sudden subject to antidumping duties.  It can become cost prohibitive to continue to import the product as oftentimes antidumping duties can exceed 100%.   Many of the antidumping duty cases involve products from China. In order to have a better grasp of what dumping is, and to adhere to antidumping laws, a Customs Compliance Lawyer such as Paula Connelly can guide your business.


Countervailing duties are also known as anti-subsidy duties. These trade import duties were imposed under the World Trade Organization Rules in order to balance out the negative effects that subsidies can bring. When any investigation shows that a foreign country has subsidized their exports, countervailing duties are imposed. This is because the actions of the foreign country in subsidizing its imports can have very negative effects on US businesses. The World Trade Organization has ruled that any country has the right to launch their own investigation and decide whether or not they should charge extra duties. These duties must be in accordance with the GATT Agreement on Subsidies and Countervailing Measures and the GATT Article VI.  As with antidumping duties, countervailing duties assessed on a company’s products can make it cost-prohibitive to continue importing. A good Custom Compliance Lawyer can go over countervailing and anti-subsidies with your business and make sure that you are within the required guidelines.

What Happens to Those Who Import Products Subject to ADD or CVD?

If the International Trade Commission and Commerce both decide that a specific product is subject to antidumping or countervailing duties, then all importers must pay the estimated duties at the time of entry.  Currently, antidumping and countervailing duties are a high priority enforcement area with U.S. Customs as they are trying to deter importers from purposely trying to evade the duties by transshipping to third countries and stating the incorrect country of origin, incorrectly identifying the goods on the entry or other methods. Penalties can be very substantial as they are  assessed as multiples on the loss of revenue to the government.  Oftentimes importers are not aware that their products are subject to ADD or CVD until after the case has been initiated by the Department of Commerce.  In these situations, it is best to seek the guidance of a trade lawyer such as Customs Lawyer Paula Connelly.


The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.

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