Antidumping Duty (AD)
An antidumping duty is a trade-remedy duty the United States imposes when imported goods are sold in the U.S. market at less than fair value and those imports injure or threaten a domestic industry.
How antidumping duty works
Antidumping duties are not general tariffs. They arise from a formal investigation led by the Department of Commerce and the U.S. International Trade Commission.
In simple terms:
- Commerce determines whether dumping exists
- the ITC determines whether the domestic industry is injured or threatened
- if both findings support relief, an AD order can be imposed
Why importers care
Antidumping duties can be very high and usually stack on top of ordinary duties and other tariff programs. They are also often product- and country-specific, which means importers need to check scope carefully instead of assuming a product is covered or not covered based on a short description.
AD versus CVD
Antidumping duty addresses below-fair-value pricing. Countervailing duty addresses unfair foreign government subsidies. Some products face one of these duties; some face both.