Once anti-dumping and countervailing duties hit, they can be far higher than ordinary tariffs. The key to determining this is not the HTS code, but the product's technical parameters.
What problem does this rule solve
Anti-dumping (AD) and countervailing duty (CVD) are additional duties beyond ordinary tariffs.
If hit by AD/CVD, costs can rise several times over.
Sellers must determine in advance whether their product falls within the scope of the case.
What anti-dumping and countervailing duty each are
| Type | What it targets |
|---|---|
| Anti-dumping (AD) | Selling below normal value |
| Countervailing duty (CVD) | Subsidies granted by the exporting country |
The two often appear together, collectively called "AD/CVD."
Whether a product is covered and the specific duty rate are subject to official US announcements.
The key to determining this is the "scope of covered products"
Every AD/CVD case has a clearly defined scope of covered products.
The scope is defined by product description, technical parameters, and use.
It is not just about the HTS code; the code is only a reference.
Under the same code, some specifications are covered and some are not.
How to verify it yourself (official channels)
US Department of Commerce International Trade Administration (ITA) website: check the AD/CVD case list.
Federal Register: check the original announcements of initiation, preliminary determinations, and final determinations.
Chapter 99 of the HTS: check the corresponding 9903 additional subheadings.
CBP website: check enforcement and bond requirements.
When checking a case, read the scope description and compare it item by item against the product.
Pitfalls sellers easily fall into
Comparing only HTS codes and ignoring the product description in the scope.
Seeing that similar products are covered and assuming all similar products are covered.
Assuming a slight product modification can circumvent it, when it may still fall within scope.
Quoting without factoring in bonds or AD/CVD duties, leading to runaway costs.
Failing to declare in time after being covered, resulting in late fees and penalty interest.
Documents you need to prepare
A complete product description and technical parameters.
An accurate HTS code.
Certificate of origin.
Supplier and manufacturer information.
If applicable, bonds and declaration materials prepared per the announcement requirements.
Why seller and manufacturer information matters
AD/CVD often applies different rates to different manufacturers and exporters.
Changing the manufacturer may change the rate, so the information must correspond to the actual production entity.
If the information does not match up, it is easily treated at the highest tier.
Two common misconceptions
Misconception one: if the code is not on the list, you are safe. The criterion is the scope, not the code.
Misconception two: modifying the product can circumvent it. Whether it is covered depends on technical parameters, not appearance.
What to do before quoting
First check the ITA case list and Federal Register announcements.
Then compare the product parameters item by item against the original scope text.
Factor possible bonds and AD/CVD duties into costs before quoting.
