If you’re importing into the United States, there is one thing you’ll want to avoid: surprise duties. Anti-dumping (AD) and countervailing duties (CVD) are tariffs imposed on goods that the U.S. government believes are unfairly priced or subsidized by foreign governments. These are not minor fees. In some cases, anti-dumping duty rates can exceed 100 percent and dramatically inflate your landed cost.
So how can you avoid an unexpected anti-dumping duty or CVD bill? Use this guide to properly vet your products and rely on your customs broker to ensure compliance from the start.
Step 1: Know What You’re Importing
This might sound obvious, but don’t just say “metal fasteners” or “kitchenware” and call it a day. The government wants details. Is the item stainless or carbon steel? What is its intended use? How is it manufactured? What components are included? What is the country of origin? What is the HTS (Harmonized Tariff Schedule) code?
Examples of Common Anti-Dumping Products
- Steel products such as flat-rolled steel, stainless steel, and steel pipes are some of the most frequently cited categories, particularly from countries like China and Korea.
- Aluminum extrusions are another recurring focus, often used in construction and manufacturing applications.
- A wide range of consumer goods may be affected, including nails, plastic bags, tires, wooden bedroom furniture, and ceramic tiles.
- Even agricultural items like honey, shrimp, and apple juice concentrate have been subject to anti-dumping duties.
These examples show why it is critical to understand exactly how your product is classified and where it originates from, especially when working with high-risk categories like steel or aluminum.
Keep in mind, anti-dumping and countervailing duties apply based on the country of origin, not the shipping origin. For example, goods made in China but routed through Vietnam may still be subject to anti-dumping duty if China is the country of origin.
Step 2: Know Who Made Your Product
Duty rates under anti-dumping and countervailing duty cases can vary by supplier. Some suppliers are assigned specific duty rates while others fall under a default “all others” category. You must confirm which category your supplier falls into to calculate the correct duty rate.
Also note that some products are covered by both anti-dumping and countervailing duty cases. Always check for both.
Step 3: Use Search Tools or Let Your Broker Handle It
The U.S. Department of Commerce (DOC) maintains a list of anti-dumping and countervailing duty cases. These tools are not always intuitive, but customs brokers have access to specialized systems like ACE that make it easier to check:
- If your product is subject to a current AD/CVD case
- The scope of the case (what is included or excluded)
- Rates and how they’re applied
- Existing scope rulings that match your product
Many AD and CVD search tools use HTS codes to help locate applicable cases. While this can be a useful starting point, the HTS code alone isn’t enough to determine whether a case is applicable. Just because a case is associated with an HTS code does not mean it automatically applies to your product.
On the other hand, your product may still fall under the scope of a case even if its HTS code is not listed. The only way to know for certain is by carefully reviewing the scope language in the case documentation and comparing it against your product’s full description. This is another reason why working with a knowledgeable broker can make a big difference.
Step 4: Request a Scope Ruling when Necessary
When it’s unclear whether your product falls under an anti-dumping duty or countervailing duty order, you can request a formal scope ruling from the Department of Commerce. However, these rulings are technical, take time, and require precise documentation.
Your customs broker or trade compliance expert can help build a strong case or advise when a ruling may not be worth pursuing. They can help you put together a strong, well-documented request, or tell you when to avoid one entirely.
Step 5: Watch Out for the “Evading Duties” Trap
CBP has increased enforcement against duty evasion. Misdeclaring the origin, classification, or, missing an applicable case can lead to serious penalties, including fines, audits, and even suspension of import privileges. Keep detailed documentation to support your determination that anti-dumping duty or countervailing duty applies or doesn’t apply to your product.
Step 6: Make AD/CVD Part of Your Product Vetting Checklist
Before you greenlight a new product or sign a purchase order, ask:
- Is this product within the scope of an AD/CVD order?
- What is the origin of its raw materials and where is it manufactured?
- Are there recent scope rulings on similar products?
- What are the potential duty costs if applicable?
By involving your broker early, you can create a consistent review process and avoid surprises.
Note: U.S. anti-dumping and countervailing duties are retrospective. Rates can be adjusted retroactively and applied to past shipments up to three years. You need to plan for this risk when calculating landed costs.
Finally, Lean on your Broker to Simplify Anti-Dumping Duty Risk
If you are managing anti-dumping and countervailing duty risk on your own, you are likely spending too much time digging through regulations and crossing your fingers for a smooth customs clearance. A qualified broker brings clarity, ensures compliance, and protects your business margins.
Have any questions or need help vetting a product? Speak to one of our trade compliance specialists today.
And if you’re looking to explore this topic in more depth, download our comprehensive guide: Trade Compliance 101: A Practical Guide for Global Shippers.
