Countervailing Duty in the United States

Countervailing Duty in the International Business Landscape

Definition of Countervailing Duty in the context of U.S. international business and public trade policy: A tax to offset the subsidies imports receive at home.

Antidumping and Countervailing Duties under the NAFTA

Under the NAFTA, Canada, Mexico and the United States retain the right to apply their antidumping and countervailing duty laws to goods imported from another NAFTA country. The Agreement also establishes a mechanism for independent binational panels to review final antidumping and countervailing duty determinations by administrative authorities in each country. Private parties wishing to contest an administrative decision respecting goods of a NAFTA country may request that a panel be established. In such cases, the panel process will substitute for domestic judicial review in the country where the administrative decision was made.

A binational panel will decide whether the antidumping or countervailing determination was made in accordance with the domestic law of the importing country. If a binational panel finds that an error was committed in the antidumping or countervailing determination, it may send the decision back to the appropriate government agency for correction. Decisions by a panel are binding and cannot be appealed to a domestic court. In addition, the Agreement establishes safeguard mechanisms designed to guarantee the integrity of the panel process.

Countervailing Duty (cvd) in the International Business Landscape

Definition of Countervailing Duty (cvd) in the context of U.S. international business and public trade policy: Ad valorem tariff placed on imported goods to offset subsidies granted by foreign governments.

Countervailing Duty (cvd) Investigation in the International Business Landscape

Definition of Countervailing Duty (cvd) Investigation in the context of U.S. international business and public trade policy: An investigation instituted by an importing country when given evidence that foreign goods sold within its borders are subsidized by the government in the country of production. If a subsidy is found by the US Department of Commerce, and the US International Trade Commission finds that US firms have been materially injured, US law generally requires imposition of a duty to offset the subsidy. The Uruguay Round code on subsidies and countervailing measures, signed in 1994, aims to standardize and discipline national practices on subsidies and offsetting duties.