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FAQs
What are antidumping (AD) and countervailing (CVD) duties?

When and how do I request a review of antidumping or countervailing duties?

Why do I need to file a Quantity and Value Questionnaire?

Why do I need to file a Separate Rates Application?

Why should I be concerned about Scope Inquiries?
 
What are antidumping (AD) and countervailing (CVD) duties?


Antidumping Duties.  Antidumping duties are additional import duties charged on merchandise that the U.S. Department of Commerce determines is being sold at less than its fair value ("dumped") in the United States.  Described simply, if the sale price of the merchandise to the United States ("export price" or "EP") is lower than the sale price to the producer's or exporter's domestic market ("normal value" or "NV"), then the merchandise is being dumped.  The Department of Commerce determines the amount at which the merchandise is being dumped, also called the "dumping margin."  The simple formula is NV - EP = dumping margin.  At the same time, the U.S. International Trade Commission determines that the dumping is causing injury to the U.S. producers of the same merchandise.  If the International Trade Commission determines that dumping is causing injury, the Department of Commerce imposes additional import duties on entries of the merchandise.  The effect is to make the imported goods less competitive in the United States to the benefit of the U.S. producers.

China, Vietnam, and other "Non-Market Economies."  China, Vietnam, and other countries that have been designated as "Non-Market Economies" ("NMEs") have a significant disadvantage.  Instead of looking at the actual prices of the merchandise sold in China, Vietnam, or other NMEs, the U.S. Department of Commerce constructs a price from prices of the inputs to the merchandise.  The price for the inputs is taken from so-called "surrogate countries" and usually results in a much higher normal value, and thus a much higher dumping margin.