Countervailing duty is an additional import duty imposed after an investigation finds that specified imports benefit from countervailable subsidies and injure or threaten a domestic industry. It applies according to the product scope, country, producer or exporter and current administrative instructions.
How is the duty calculated?
The method depends on the jurisdiction and order. If an illustrative shipment has a relevant customs value of $75,000 and an applicable 8% countervailing-duty rate, the estimated additional duty is $75,000 × 8% = $6,000. Ordinary duty, tax, fees and anti-dumping duty are separate.
What should an importer verify?
- Written product-scope language
- Tariff classification and technical description
- Country of origin, producer and exporter
- Applicable cash-deposit or assessment rate
- Entry date and current customs instructions
- Overlap with anti-dumping measures
Countervailing vs. anti-dumping duty
Countervailing duty addresses certain foreign subsidies. Anti-Dumping Duty addresses specified goods sold below a determined normal value. Both can apply to the same import.
Why can final liability change?
Entry deposits may be adjusted after administrative review, scope decisions or corrected origin and producer information. Importers should preserve the supporting documents and obtain advice for the relevant jurisdiction and product.
