Dumping occurs when a foreign manufacturer, producer, or exporter sells goods in the U.S. at less than fair-market value, causing injury to the U.S. industry. Duties are calculated to bridge the gap back to fair market value.
Antidumping occurs when a foreign producer, exporter, or manufacturer sells a product in the United States at a price that is below “normal value.” Normal value may be the price at which the foreign producer sells the merchandise in its own domestic market (or a third-country market) based on its production costs plus an amount for profit. Antidumping is additional duties assessed on goods to counteract dumping.
Countervailing occurs when a foreign government provides assistance and subsidies, such as tax breaks to manufacturers that export goods to the U.S. This enables the manufacturers to sell the goods cheaper than domestic manufacturers. The assessment of Countervailing duties offsets or “countervails” these subsidies. Duties are calculated to duplicate the value of the subsidy.
You need to review the scope of AD/CVD orders to determine whether the merchandise falls under the scope of an order. The scope of AD/CVD orders can be found in several places:
It is the Importer of Record’s responsibility to be aware of any antidumping and/or countervailing duties that may apply to its goods, and to pay the applicable AD/CV duties at the time of entry.
Failure to correctly declare AD/CVD and pay required duties at time of entry may expose the importer to serious penalties and other consequences, including a referral to U.S. Immigration and Customs Enforcement for civil and/or criminal investigation.
Liability for AD/CVD is dictated by the AD/CV case scope definition, NOT by HTS number. The U.S. Government provides a list of likely HTS numbers for each AD/CVD case for convenience only, but not all items covered by an HTS number are necessarily covered under the Scope definition. An importer must read the scope of any AD/CVD case that could apply to its goods in order to determine applicability.
If your product is flagged as subject to AD/CVD duties but is not within the scope of the AD/CVD order, you must fill out an ADD/CVD Statement of Non-Applicability to indicate that you have researched your product and determined that it does not fall within the scope of the AD/CVD order. (Find our forms page here)
Foreign Goods Returned
Single Transaction Bonds (STBs) cover a single import transaction at one port of entry. This option is ideal for companies that typically have less than four imports into the U.S. per year, especially if the goods have low value and no Partner Government Agency (PGA) reporting (i.e., FDA, EPA, APHIS Core, etc.). An STB for merchandise that requires PGA reporting is required to be executed at three times the total entered value of the merchandise. For each shipment, the purchase of a new STB is required.
Continuous bonds cover all of an importer’s shipments, at all U.S. ports of entry, for a full year. For companies that have five or more shipments per year or have high value shipments, a continuous bond is highly recommended. A continuous bond may also be recommended for importers with products that require reporting to Partner Government Agencies (PGAs).