Anti-Dumping and Countervailing Duties on China Imports: How They Work
Customs & rules · Updated
Anti-dumping (AD) duties and countervailing duties (CVD) are two separate trade remedy measures that can dramatically increase the cost of importing certain products from China. They are in addition to regular MFN tariffs and Section 301 tariffs, and their rates are determined product-by-product through US government investigations.
Unlike Section 301 tariffs, which apply broadly by HTS code, AD/CVD orders are very specific: they name the product, the country, and sometimes even specific manufacturers. A product may face no AD/CVD duties from one Chinese factory while facing 200%+ duties from another. This guide explains how the system works, how to check whether your product is covered, and what happens if you get it wrong.
Key takeaways
- --AD/CVD duties are separate from and cumulative with Section 301 tariffs. Combined rates over 100% exist for some Chinese product categories.
- --Rates are manufacturer-specific. The same product from two different Chinese factories can face very different AD rates.
- --The China-wide rate (for manufacturers who did not participate in the investigation) is typically the highest rate in the order -- often 100%+.
- --Check your HTS code against CBP's ADD/CVD database and Commerce's Order Central before placing any order in a covered category.
- --Transshipment through Vietnam or other countries to avoid AD/CVD is customs fraud. CBP investigates and prosecutes it.
What anti-dumping duties are
Anti-dumping duties are imposed when the US International Trade Commission (USITC) and the Department of Commerce determine that a foreign manufacturer is selling goods in the US at below fair market value -- that is, below what they charge in their home market or below their cost of production.
The duty is set at a rate designed to bring the price up to fair market value. Rates are calculated per manufacturer or exporter, and they vary significantly. A Chinese solar panel manufacturer with a rate of 25% and one with a rate of 250% are both covered by the same AD order -- but at very different costs to the importer.
AD orders apply to specific products from specific countries, and they remain in effect for five-year periods, subject to sunset review. Many China AD orders have been in place for 10 to 20 years.
What countervailing duties are
Countervailing duties address foreign government subsidies rather than pricing behavior. If a foreign government provides subsidies -- cheap loans, land grants, tax credits, direct payments -- that allow their manufacturers to undercut US producers, CVD imposes an offsetting duty.
CVD rates are calculated as a percentage of the subsidy benefit. For China, where state support for manufacturing is pervasive, CVD orders are common in industries like steel, aluminum, solar, tires, and building materials.
AD and CVD orders on the same product from the same country often run in parallel and their rates are cumulative. A product facing both a 60% AD rate and a 40% CVD rate pays 100% in AD/CVD duties on top of any applicable Section 301 tariff.
Which products are most commonly affected
AD/CVD orders cover a wide range of products. Categories with significant coverage from China include:
- Steel and aluminum products (wire rod, cold-rolled flat products, aluminum foil, pipes and tubes)
- Solar panels and cells
- Tires (passenger and light truck)
- Furniture (wooden bedroom furniture, wood cabinets, mattresses)
- Seafood (crawfish, shrimp)
- Paper and packaging (uncoated paper, kraft paper, paperboard)
- Chemical products (glycine, citric acid, carbazole violet pigment)
- Textile inputs (polyester staple fiber, certain yarns)
This list is not exhaustive. There are over 100 active AD/CVD orders on Chinese goods. The only way to know whether your specific product is covered is to check the USITC and Commerce databases.
How to check whether your product is covered
Step 1: Identify your 10-digit HTS code. AD/CVD orders are tied to HTS codes as well as product descriptions.
Step 2: Search the CBP ADD/CVD search tool at cbp.gov. CBP maintains a database of active orders that can be searched by HTS code or product description.
Step 3: Check the Commerce Department's AD/CVD Order Central database (access.trade.gov). This is the authoritative source for active orders, including the rates per named Chinese manufacturer.
Step 4: If your product appears in an order, identify the specific rate for your supplier. Rates are manufacturer-specific. A supplier not listed by name gets the 'all others' rate, which is often higher than named manufacturers' rates.
Step 5: If uncertain, ask your customs broker to run an AD/CVD check before you place the order. This is standard practice and should cost nothing beyond your broker's normal time.
Manufacturer-specific rates and how they work
AD/CVD rates are assigned to specific exporters and manufacturers named in Commerce Department investigations. A Chinese factory that participated in the investigation and received a calculated rate pays that rate. All other Chinese manufacturers pay the 'all others' rate or the 'China-wide' rate.
The China-wide rate is typically the highest rate in the order -- it is the rate assigned to companies that did not participate in the investigation or could not demonstrate they operate independently of the Chinese government. China-wide rates over 100% are common in steel and solar orders.
This creates a powerful incentive to verify your supplier's specific rate before importing. If your supplier is subject to a 25% AD rate while their competitor faces the 200% China-wide rate, buying from the wrong factory is a very expensive mistake.
What happens if you import covered goods without paying AD/CVD
CBP can assess AD/CVD duties retroactively. If your goods are subject to an order and you did not pay the applicable rate at entry, CBP can bill you for the difference -- plus interest -- for up to five years after entry.
AD/CVD evasion is treated as customs fraud. Penalties can include: liquidated damages (typically the full duty amount), seizure of goods, and referral for civil or criminal prosecution.
CBP has increasingly used Section 592 of the Tariff Act to pursue AD/CVD evasion cases, particularly for transshipment through third countries (declaring goods as Vietnamese or Malaysian origin to avoid Chinese AD/CVD orders). Penalties for negligent violations: 20% of unpaid duties. For fraudulent violations: up to 4x the unpaid duties.
Scope rulings and exclusion requests
If you believe your product is similar to but not actually covered by an AD/CVD order, you can request a scope ruling from the Department of Commerce. A scope ruling is an official determination of whether your specific product falls within the scope of the order.
Scope rulings take 45 days (for straightforward cases) to significantly longer for contested rulings. They are binding on CBP.
Some AD/CVD orders also have exclusion processes -- particularly for Section 232 and Section 301 tariffs, which have separate exclusion request procedures. AD/CVD exclusions are rarer and more product-specific.
FAQ
How do I find out if my product from China has anti-dumping duties?
Start with your 10-digit HTS code. Search CBP's ADD/CVD search tool at cbp.gov and the Commerce Department's AD/CVD Order Central at access.trade.gov. Both are searchable by HTS code and product description. If a result appears, check the specific rate for your supplier's name. If your supplier is not listed, the 'all others' or 'China-wide' rate applies, which is often the highest rate in the order. Your customs broker should also be able to run this check.
Are anti-dumping duties the same as Section 301 tariffs?
No. They are separate and cumulative. Section 301 tariffs apply by HTS code to most Chinese goods at rates of 7.5% to 145% depending on the category. Anti-dumping and countervailing duties apply to specific products covered by active trade remedy orders, at rates determined by Commerce Department investigations. Both can apply to the same shipment at the same time, and both are paid by the importer.
What is the China-wide AD rate and why is it so high?
The China-wide rate is assigned to Chinese manufacturers that did not participate in a Commerce Department AD investigation or could not demonstrate they operate independently of the Chinese government. It is typically the highest rate in the order, sometimes exceeding 200%. Commerce sets it high because without participation in the investigation, it has no basis to calculate a lower rate for that specific manufacturer.
Can I source the same product from Vietnam to avoid China AD/CVD duties?
Only if the product is actually manufactured in Vietnam. CBP and the ITC actively investigate transshipment -- routing Chinese goods through a third country to misrepresent their origin and avoid AD/CVD orders. Penalties for transshipment evasion are severe. If you genuinely shift production to Vietnam-origin manufacturing, with Vietnamese value added, that can change the country of origin. But buying Chinese goods, shipping them through Vietnam, and declaring them as Vietnamese is customs fraud.
What is a scope ruling and when should I request one?
A scope ruling is an official determination from the Department of Commerce on whether your specific product falls within the scope of an active AD/CVD order. Request one when: your product is similar to but arguably different from the products described in the order, when you want certainty before making a large purchase commitment, or when CBP has suspended your entry pending a scope determination. Straightforward rulings take around 45 days.
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