Tariffs & Duties
Anti-Dumping and Countervailing Duties: What Importers Need to Know
AD/CVD orders are separate from Section 301 tariffs — and they can be far more damaging. Rates of 200% or more are common, they apply retroactively, and CBP can bill you months or years after your goods entered. Here's how to identify exposure and protect yourself.
What Are Anti-Dumping Duties?
Anti-dumping duties (AD duties) are imposed on imported goods that are sold in the US at a price lower than their “normal value” in the exporting country — essentially, sold below cost or below home-market price. The US government treats this as unfair competition that harms American domestic industry.
When the US International Trade Commission (ITC) determines that dumped imports are injuring or threatening to injure a US industry, and the US Department of Commerce (Commerce) calculates a dumping margin, an anti-dumping order is issued. Importers must then pay a cash deposit equal to the dumping margin on every shipment covered by the order.
What Are Countervailing Duties?
Countervailing duties (CVD) address a different problem: foreign government subsidies. When a foreign government subsidizes an industry — through cheap loans, tax breaks, direct grants, or below-market inputs — those subsidies allow the exporter to undercut US market prices artificially.
Commerce investigates the subsidy and calculates a countervailing duty rate. Like AD duties, CVD applies per shipment and is collected at the time of entry as a cash deposit.
AD and CVD cases are often filed simultaneously against the same product and country, which is why they're commonly abbreviated together as “AD/CVD.”
How AD/CVD Is Different from Section 301
| Feature | Section 301 Tariffs | AD/CVD Orders |
|---|---|---|
| Legal authority | Trade Act of 1974, Section 301 | Tariff Act of 1930, Titles VII and II |
| Triggers | Unfair trade practices (IP theft, market barriers) | Dumping or foreign government subsidies |
| Who initiates | USTR (presidential action) | US domestic industry petitions ITC/Commerce |
| Rates | Flat rate per HTS code (7.5%–145%) | Company-specific rates; can exceed 200% |
| Retroactivity | No — applies from effective date | Yes — subject to retroactive assessment at liquidation |
| Country coverage | Primarily China (also others) | Any country where dumping or subsidies are found |
| Scope | Broad product categories | Specific products, often by manufacturer/country |
How AD/CVD Rates Work
Cash deposits
When you import goods subject to an AD or CVD order, CBP requires you to pay a “cash deposit” at the time of entry. The deposit rate is set per manufacturer or exporter — not per product. A Chinese factory with a 12% AD rate and a different factory making the identical product with a 185% AD rate are treated differently even on the same HTS code.
Annual administrative reviews
Each year, Commerce conducts administrative reviews to recalculate the actual AD/CVD rate for the previous year's shipments. After the review, CBP “liquidates” the entries — finalizing the duty amount. If the final rate is higher than your cash deposit, you owe the difference (plus interest). If lower, you get a refund.
The gap between the cash deposit rate and the final liquidated rate is the core financial risk of AD/CVD. An importer who paid a 15% deposit may face a 200% final rate after review.
New shipper reviews
A new exporter that wasn't included in the original investigation can request a “new shipper review” to get their own company-specific rate. Until that rate is established, they're subject to the “all others” rate, which is often high.
Common Products Subject to AD/CVD Orders
AD/CVD orders cover hundreds of products. Some of the highest-volume categories affecting ecommerce importers include:
- Steel and aluminum products (many HTS chapters 72–76)
- Solar panels and solar cells (China)
- Mattresses (China, Southeast Asia)
- Wooden bedroom furniture (China)
- Passenger tires (China, Korea)
- Paper and paperboard products
- Seafood (shrimp, certain fish from China/Vietnam)
- Hardwood plywood (China)
- Ceramic tile (China)
- Various fasteners and hardware (China)
How to Check If Your Product Is Subject to an AD/CVD Order
The authoritative source is the Commerce Department's ADD/CVD Search portal at access.trade.gov. To check:
- Search by HTS code, country, or product description
- Filter for “active” orders — revoked orders no longer apply
- Note the case number, the scope description, and the current cash deposit rates by company
- Compare the scope description carefully against your specific product — scope exclusions are common and can be narrow
Your customs broker should also check for AD/CVD applicability when classifying your goods. If they're not doing this automatically, ask — it's a standard part of import compliance.
What Happens If You Import Without Knowing
Ignorance of an AD/CVD order is not a defense. If CBP discovers your goods are subject to an active order that you haven't deposited on, you face:
- Back payment of all unpaid deposits plus interest
- Potential penalties for evasion (up to 4x the unpaid duties)
- Referral to CBP's Trade Remedy Law Enforcement Directorate for investigation
The Enforce and Protect Act (EAPA) gives CBP strong tools to pursue AD/CVD evasion, and domestic industries actively monitor imports in covered categories.
Scope Rulings: When Coverage Is Ambiguous
AD/CVD orders are written in broad language, and whether your specific product falls within scope isn't always obvious. Commerce issues “scope rulings” that determine whether a specific product is covered by an existing order.
If your product is borderline, you can request a scope ruling from Commerce before importing. Like a CBP binding ruling on classification, a scope ruling provides legal certainty. This is especially valuable when the potential AD/CVD rate is high.
For more on how regular duty rates work — separate from AD/CVD — see our guide to US customs duty rates and our overview of Section 301 tariffs. Use our free HTS lookup tool to check your product's base duty rate and Section 301 status, then verify AD/CVD exposure separately via access.trade.gov.
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