Countervailing Duties (CVD)
Taxes imposed on imported goods to offset subsidies given to foreign producers by their governments.
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What is Countervailing Duties (CVD)?
Countervailing duties are taxes imposed on imported goods by the importing country to counteract the effects of subsidies provided by the exporting country to their domestic producers. These duties are designed to level the playing field for domestic producers who are not receiving similar subsidies and to prevent unfair competition from subsidized imports.
Countervailing duties are typically imposed by an importing country’s government or trade authority, based on an investigation that determines whether the subsidies provided by the exporting country are causing material harm to the domestic industry in the importing country. The number of countervailing duties imposed is typically based on the amount of the subsidy and is intended to offset the unfair advantage that the subsidized imports would otherwise have over the domestic industry.
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