Antidumping and countervailing duties are intended to offset the value of dumping, leveling the playing field for industries affected by unfairly traded imports.
Dumping occurs when a foreign producer or exporter 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, or it may be a constructed value based on its production costs plus profit.
What Is Antidumping in Freight Shipping?
Antidumping duties (AD) are taxes imposed on imported goods to level the playing field against “dumping.” Antidumping and Countervailing Duty (AD/CVD) laws are focus areas of trade enforcement defined in the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA).
How Do Imports Become Subject to Antidumping Laws?
When imports are sold at less than the fair value (“dumped)” or subsidized by the importing government or party (“countervailed”), they are subject to the Antidumping and Countervailing Duty (AD/CVD) statute and regulations.
U.S. imports are subject to antidumping laws after a petition is filed, an investigation is conducted, and the U.S. International Trade Commission (ITC) determines:
- There is a “reasonable indication” that an industry is materially injured or is threatened with material injury, or;
- The establishment of an industry is materially retarded, by reason of imports under investigation by the Department of Commerce (Commerce) that are allegedly sold at less than fair value in the U.S. (AD) or subsidized (CVD).
How Are Antidumping Duty (AD) Amounts Calculated?
The International Trade Association’s Enforcement and Compliance agency calculates AD rates and establishes the scope of each order. This table reports the AD/CVD cases filed against the U.S.
As it relates to both antidumping and countervailing, the U.S. International Trade Commission (ITC) states: “Under the law, the U.S. Department of Commerce determines whether the dumping or subsidizing exists and, if so, the margin of dumping or amount of the subsidy; the USITC determines whether there is material injury or threat of material injury to the domestic industry by reason of the dumped or subsidized imports.”
Which Merchandise Falls Under the Scope of an Antidumping Duty (AD) Order?
If an importer knows the Harmonized Tariff Schedule (HTS) classification of their merchandise, they may be able to determine whether an item will require AD/CVD payments. However, not all imports subject to AD/CVD include or exclude an HTS classification.
Which Agencies are Responsible for Antidumping Duty (AD) Orders?
U.S. Department of Commerce’s International Trade Administration’s Enforcement and Compliance calculates AD rates and establishes the scope of both AD and CVD orders.
Once an order is established, U.S. Customs and Border Protection (CBP) partners with other government agencies, known as Partner Government Agencies (PGAs), to enforce antidumping and countervailing duty (AD/CVD) laws on imported goods. CPB is the agency responsible for collecting these duties in a timely manner.
Who Files an Antidumping Duty (AD) Petition?
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How Do I Know Which Merchandise is Subject to Antidumping Duties (AD)?
To determine whether merchandise is subject to AD duties, businesses should review the scope of orders.
This information can be found via:
- Federal Register notices from U.S. Department of Commerce.
- CBP’s Automated Commercial Environment (ACE).
- The International Trade Administration (ITA) website.
- Request a scope ruling from Department of Commerce.
- Import Specialists at a Center of Excellence and Expertise.
- Published case information from ITA or ITC.
How MercuryGate Helps Support Global Trade Participants Mindful of Antidumping
Freight managers, brokers, and business owners must meet regulatory requirements in an incredibly complex international trade environment.
Antidumping (AD) laws and tariffs exist to help level the playing field across the global economy. Similar to countervailing for importers, companies that export shipments into the U.S. may be required to pay duties if their goods are sold in the U.S. at a price below its normal value. Staying mindful of your product’s impacts on global markets – and thus the risk of dumping – is critical to bottom-line profitability.
In this environment, leading technology and process automation help shippers and brokers mitigate trade compliance risks while gaining operational efficiencies that reduce costs and improve service to end customers. Through MercuryGate Global Trade solutions importers gain control and visibility into multiple important tasks in a single platform that’s built for end-to-end efficiency.
Solutions for Import Compliance and Functionality
- Integrated workflows that incorporate compliance and logistics data to create transactional views.
- Access the ACE portal to file, track, and communicate with CPB entities and stakeholders.
- File entry summaries with the CBP, including the ability to reconcile information.
- Submit import declarations to align with customs regulations and requirements.
- Manage risk proactively through automated monitoring, measurement, and validation of compliance across orders, items, and trading partners.
- Identify denied parties to ensure alignment across international trade.
- Manage brokerage operations to expand visibility and enhance automation.
- Get regular updates on the latest laws, regulations, and documentation in cross-border shipping.
Businesses with an international supply chain need tools and best practices that help them face steep challenges and risks of importing goods. This eBook offers insider tips to keep freight moving across the U.S. border.
Connect with MercuryGate to discover how businesses can maximize the value and efficiency of U.S. imports.
