Trade Remedies & Import Compliance
Countervailing Duty
Also known as: CVD, Anti-subsidy Duty
A countervailing duty is an additional import duty levied to neutralize the benefit of a foreign government subsidy that has artificially lowered the price of exported goods and injured a competing domestic industry. Like antidumping duties, countervailing duties follow a formal investigation and result in an order specifying a subsidy margin, and the two remedies frequently apply to the same products at the same time, stacking on top of the ordinary tariff. Importers must identify whether their merchandise falls within the scope of an order, post the required deposits, and monitor administrative reviews that can raise or lower the applicable rate.
The mirror of antidumping, aimed at subsidy rather than pricing, and it lands on importers the same way. The practical point is identical: the order defines a class of merchandise from a country, and your intentions are irrelevant to whether your goods fall inside it.
Where it matters for compliance
- AD and CVD orders frequently apply to the same goods simultaneously.
- Cash deposit rates change at review. The rate at entry is not necessarily the rate you owe.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.