Antidumping & Countervailing duties laws are two trade remedies that provide relief to domestic industries as protection against foreign imports. Antidumping duties are imposed when exports of goods to the United States are sold at prices significantly lower than the country of origin or comparable third country markets. Countervailing duties are imposed when goods from the exporting country are granted significant subsidies by the exporting country. Our Firm assists clients in filing petitions, protest, and or scope rulings with the U.S. Department of Commerce and the International Trade Commission to seek relief from such additional duties.
Antidumping duties are implemented to prevent foreign companies from selling goods in the US below market value, which can harm American businesses. Meanwhile, countervailing duties are applied to offset government subsidies that foreign companies receive that put them at an unfair advantage. Both antidumping and countervailing duties serve to level the playing field for American businesses, so they can fairly compete.
The procedures to calculate dumping margins or subsidies can be very complicated and time-consuming. However, the key takeaway is that businesses must always strive for transparency when it comes to pricing and financial records. When the US Department of Commerce conducts an antidumping or countervailing duty investigation, they will scrutinize a company’s financial documents to ensure that they are not manipulating prices to undercut their American counterparts. Companies that flout customs rules can expect hefty penalties and reputational damage.
To ensure that they are aware of the policies and regulations around antidumping & countervailing duties, businesses should stay up to date with international trade agreements and regularly review their contracts. Companies can engage customs compliance experts to help them stay compliant with regulations and to fill out the necessary paperwork to register for antidumping and countervailing duty reviews. Having a strong knowledge of your supply chain and products is also crucial. Knowing where your materials come from and how much they cost is fundamental to accurately report the value of your goods to customs.
One way businesses can reduce their risk of incurring antidumping or countervailing duties is to explore duty drawback. A duty drawback program enables companies to get a refund of up to 99 percent of governmental fees and taxes on merchandise that they import and then export, or destroy. Duty drawback is a complex area of customs compliance, but it can offer businesses significant savings, and it’s worth looking into.
Another thing businesses can do to ensure compliance with customs regulations, including antidumping & countervailing duties, is to invest in top-notch software solutions. Compliance software can help businesses automate their customs compliance processes, so they can efficiently organize their documentation and filings and avoid costly errors.