Antidumping and Countervailing Duties
- IFF, inc.
- May 8
- 4 min read
Disclaimer
IFF, Inc. provides this document as a reference guide to help importers better understand the antidumping/countervailing duty (AD/CVD) framework and conduct initial AD/CVD research. This is not a comprehensive list of requirements or resources and should be used for informational purposes only.
Importer’s Responsibility for AD/CVD Compliance
Importers must exercise reasonable care in identifying whether their goods are subject to any antidumping or countervailing duty case. While IFF, Inc Operations may notify you of specific cases affecting your products, additional cases may apply, even if they do not appear in a customs broker’s system. As a result, IFF may not always be able to provide alerts.
Failure to comply with AD/CVD regulations can result in significant consequences, including:
Monetary penalties that may exceed several times the lost revenue, up to the full domestic value of the merchandise.
Referral to U.S. Immigration and Customs Enforcement (ICE) for civil or criminal investigation.
Key Government Resources for AD/CVD Information
For further details, visit the following official U.S. government sites:
ACCESS – Antidumping and Countervailing Search tool
Document Overview
This document contains the following attachments:
Section A: Overview of antidumping and countervailing duties.
Section B: Importer compliance guidelines and key concepts regarding AD/CVD evasion and circumvention.
Section C: A curated list of U.S. government resources for AD/CVD research, including guidance from CBP, the Department of Commerce, and the International Trade Commission.
Section A: What Are Antidumping and Countervailing Duties?
Under the Tariff Act of 1930, U.S. industries may seek government intervention for imports that:
Are sold in the U.S. at less than fair market value, subject to antidumping duties.
Receive foreign government subsidies, subject to countervailing duties.
The U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC) oversee the AD/CVD investigation process, while U.S. Customs and Border Protection (CBP) enforces these duties at the U.S. border.
Lifecycle of an AD/CVD Case
Upon receiving a complaint, Commerce evaluates whether an investigation is warranted. If approved, the process involves both Commerce and ITC:
Commerce: Determines if imported goods are unfairly priced or subsidized.
ITC: Assesses whether domestic industries face material injury or a credible threat of injury.
Investigations occur in two phases:
Preliminary Phase: If both agencies issue affirmative preliminary findings, AD/CVD duties are imposed on applicable imports. Commerce establishes a dumping/subsidy margin to offset unfair pricing.
Final Phase: Commerce and ITC finalize their determinations, potentially adjusting duty rates or enforcement actions.
Final Determination and Post-Investigation Actions
Once both the Department of Commerce (Commerce) and the International Trade Commission (ITC) issue final determinations, the following actions take place:
If both agencies affirm that dumping or subsidization has occurred and that it harms U.S. industries, Commerce will issue an AD/CVD order.
Importers of affected goods must deposit duties at rates determined by Commerce, and U.S. Customs and Border Protection (CBP) enforces collection at the border.
Importers may request administrative reviews of duty rates. If Commerce revises the rates, duties may be adjusted retroactively.
Some cases undergo sunset reviews every five years to determine if duties should remain in place.
Evasion and circumvention investigations may follow if importers attempt to bypass AD/CVD duties through transshipment or misclassification.
Ongoing Compliance
Importers must remain vigilant and continuously monitor updates to AD/CVD regulations, including potential rate changes and new investigations that could impact their supply chains.
Section B: Importer Compliance with AD/CVD Regulations
Due Diligence for Importers
Importers are responsible for conducting thorough AD/CVD research to ensure compliance. Key aspects to consider include:
Identifying applicable cases: Not all cases are flagged by a customs broker’s system—importers must verify independently.
Understanding duty assessment: AD/CVD rates can fluctuate based on administrative reviews, investigations, and enforcement actions.
Avoiding evasion and circumvention: Transshipment or misclassification of goods to avoid duties can result in severe penalties, including fines and criminal investigation referrals to U.S. Immigration and Customs Enforcement (ICE).
Consequences of Non-Compliance
Failure to comply with AD/CVD obligations may result in:
Monetary penalties, potentially exceeding the domestic value of the merchandise.
Seizure of goods and suspension of trade privileges.
Legal action, including civil and criminal liability.
To ensure compliance, importers are encouraged to consult AD/CVD databases regularly and seek legal or trade compliance expertise when necessary.
Section C: Resources for AD/CVD Research
Key U.S. Government Resources
Importers can access detailed AD/CVD regulations and case information through the following agencies:
1. U.S. Customs and Border Protection (CBP)
Provides guidelines on duty enforcement, compliance, and importer obligations.
2. Department of Commerce – International Trade Administration (ITA)
Contains detailed case lists, investigation procedures, and historical duty rates.
3. U.S. International Trade Commission (ITC)
Offers case-specific analysis and industry impact assessments.
Additional Research Tools
Federal Register Notices: Provides updates on orders, as well as AD/CVD investigations and duty changes.
ACE Portal: A CBP system that allows importers to track AD/CVD entries and duty payments.
Trade Compliance Professionals: Consulting experts can provide insights on complex AD/CVD cases.
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