Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties imposed under

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

(WTO). They are applied following an investigation that determines a foreign country's subsidies on exports have harmed domestic producers in the importing country. These duties aim to counterbalance the adverse impacts of such subsidies. According to

rules, a country can launch its own investigation and decide to charge extra duties, provided such additional duties are in accordance with the

GATT The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its p ...

Article VI and the GATT Agreement on Subsidies and Countervailing Measures. Since countries can rule domestically whether domestic industries are in danger and whether foreign countries subsidize the products, the institutional process surrounding the investigation and determinations has significant impacts beyond the countervailing duties.

By country

United States

Countervailing duties in the U.S. are assessed by the

International Trade Administration The International Trade Administration (ITA) is an agency in the United States Department of Commerce that promotes United States exports of nonagricultural U.S. goods and services. Duties The ITA's stated goals are to # Provide practical info ...

of the U.S. Department of Commerce which determines whether imports in question are being subsidized and, if so, by how much. If the U.S. International Trade Commission determines that there is material injury to the competing domestic industry, the Department of Commerce will instruct

U.S. Customs and Border Protection United States Customs and Border Protection (CBP) is the largest federal law enforcement agency of the United States Department of Homeland Security. It is the country's primary border control organization, charged with regulating and facilita ...

to levy duties in the amount equivalent to subsidy margins.https://www.trade.gov/us-antidumping-and-countervailing-duties Petitions for remedies may be filed by domestic manufacturers or unions within the domestic industry, but the law requires that the petitioners represent at least 25% of the domestic production of the goods for which competition is causing material injury.

References

{{reflist Import Customs duties