Countervailing duties, or CVD, are additional import duties applied to offset unfair foreign government subsidies given to producers or exporters. When subsidised goods enter another country at artificially low prices, CVD helps protect domestic industries from injury. In customs and trade compliance, countervailing duties are usually assessed in addition to normal customs duties and may apply to specific products, countries, manufacturers, or exporters. Importers must review CVD orders carefully because rates and requirements can change by case and supplier.
Countervailing duties (CVD) are tariffs imposed by an importing country on foreign goods that benefit from government subsidies in the country of origin, offsetting the unfair price advantage those subsidies create.
How CVDs Are Imposed
In the U.S., the Department of Commerce investigates whether foreign government subsidies are being provided to exporters. If confirmed, CVD orders are issued setting a duty rate to offset the subsidy amount.
Impact on Importers
- Duty deposits required at entry based on a preliminary or final rate
- Annual administrative reviews can adjust rates retroactively
- CVD orders are country and product specific; importers must verify applicability
For related logistics context, see Dedola’s aftermarket auto parts logistics and glossary entries on Anti-Dumping Duties, Trade Remedy, Country of Origin, and Customs Entry.
