Trade Remedies: Antidumping and Countervailing Duties (CRS Report for Congress)
| Release Date |
Revised Oct. 3, 2024 |
| Report Number |
IF10018 |
| Report Type |
In Focus |
| Authors |
Vivian C. Jones, Christopher A. Casey |
| Source Agency |
Congressional Research Service |
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Summary:
What are they? Antidumping (AD) and Countervailing
Duties (CVD) address unfair trade practices by providing
relief to U.S. industries and workers that are “materially
injured,” or threatened with injury, due to imports of like
products sold in the U.S. market at less than fair value
(AD), or subsidized by a foreign government or public
entity (CVD).
What is the relief provided? At the end of an investigative
process, in AD cases, the remedy is an additional duty
placed on the imported merchandise to offset the difference
between the price (or cost) in the foreign market and the
price in the U.S. market. In CVD cases, a duty equivalent to
the amount of subsidy is placed on the imports.
Who conducts AD and CVD investigations? The U.S.
International Trade Commission (USITC) determines if a
U.S. industry has suffered material injury. The International
Trade Administration of the Department of Commerce
(ITA) determines the existence and amount of dumping or
subsidy.
What is the statutory authority for AD and CVD
investigations? AD/CVD laws are found in Title VII of the
Tariff Act of 1930 (19 U.S.C. 1671-1677n, as amended).
U.S. laws and those of other World Trade Organization
(WTO) members must comply with obligations under the
WTO Antidumping and Subsidies Agreements.
What is the value of goods currently subject to AD and
CVD orders? In FY2020, $18.2 billion of imported goods
were subject to AD/CVD and U.S. Customs and Border
Protection (CBP) assessed approximately $1.8 billion in
AD/CVD deposits and levied more than $31 million in
fines and penalties for fraud, negligence, and gross
negligence of AD/CVD requirements.
Supporting Views. Supporters of AD/CVD actions say that
they are necessary to shield U.S. industries and workers
from unfair competition, and that they help to increase
public support for additional trade liberalization measures.
Opposing Views. Opponents, including some importers
and downstream consuming industries, say that AD/CVD
actions create inefficiencies in the world trading system by
“artificially” raising prices on imported merchandise. Some
U.S. exporters are also concerned because U.S. products are
subject to these AD/CVD actions in foreign markets.
