Antidumping and Countervailing Duties
Overview
The Homeland Security Investigations (HSI) Commercial Fraud Unit runs the Antidumping and Countervailing Duty (AD/CVD) program. This program helps ensure that duties are properly paid on certain imports to the United States. These duties are important because they help level the playing field for domestic producers competing against foreign exporters that engage in dumping or benefit from foreign government subsidies.
Focus
The U.S. International Trade Commission (ITC) and the U.S. Department of Commerce handle the investigations under Title VII of the Tariff Act of 1930. Under this act, U.S. industries can ask for help if they’re hurt by unfairly priced or subsidized imports. Dumping happens when a foreign producer sells a product in the U.S. at a price lower than its home market price or below its production cost. Subsidizing happens when a foreign government gives financial help to boost the production, manufacture, or exportation of a product.
If the Department of Commerce finds that a product is being dumped or subsidized, and the ITC sees that it’s harming or threatening to harm a U.S. industry, they’ll put a duty order in place. This duty is meant to counteract the unfair pricing or subsidies. Once this order is set, the Department of Commerce tells U.S. Customs and Border Protection (CBP) to start collecting these duties on the relevant imports to counteract these unfair practices.
HSI, with support from CBP and the Department of Commerce, investigates importers who try to dodge these duties. Common tactics include illegal transshipment, changing product markings, undervaluing goods, and misdescribing them to evade payment.
Seafood Dumping
Circumvention of Honey