Dumping duties

Dumping is an international trade practice where one country exports goods at lower rates than it charges in its own domestic market, essentially dumping the product.  Under the General Agreement on Tariffs and Trade (GATT), importing countries may follow anti-Dumping measures when Dumping is detrimental for domestic commerce, which includes applying Dumping duties to level the playing field.  The World Trade Organization (WTO) does not discipline countries for Dumping, but it does discipline anti-Dumping actions that do not adhere to GATT regulations.  GATT requires Dumping investigations to compare normal value pricing with Dumping pricing and damages incurred, to establish the duration of anti-Dumping measures.  The WTO uses settlement panels to resolve disputes over anti-Dumping actions taken by domestic country authorities. 

Countervailing duties

Countervailing duties are anti-subsidy duties that importing countries impose to counteract or countervail the adverse effects that subsidized imports have on their domestic market.  The WTO can discipline and regulate the use of subsidies through dispute settlement procedures.  There are two ways of dealing with the adverse effects of subsidies:

1.    Arrive at a settlement where the importing country withdraws the subsidy

2.    Subsequent to the importing country’s investigation of damages, impose an additional tariff, called a Countervailing duty on subsidized imports that harm domestic markets

The U.S. International Trade Administration (ITC) determines whether other countries are subsidizing imported goods and whether the subsidies are detrimental to U.S. domestic markets.  If considered detrimental, the ITC orders U.S. Customs to levy Countervailing duties commensurate with the subsidies.  At Peter S. Herrick, P.A., our attorneys assist companies with filing petitions regarding Countervailing duties.  Under Section 702(b) of the Tariff Act of 1930, to file a petition, manufacturers must provide evidence substantiating that they produce 25 percent of the total domestic like product and that more than 50 percent of the industry producing this product supports or opposes the petition.

Our customs attorneys have extensive knowledge and experience dealing with regulatory agencies to handle dumping duties and countervailing duties on behalf of international enterprises. Contact us today for a consultation.