Countervailing duties are import taxes a government may impose to offset foreign subsidies that make imported goods artificially cheaper. In U.S. trade practice, they are usually assessed after an investigation finds that a product was subsidized and that the imports injured a domestic industry.
How they affect shipments
For importers, countervailing duties can raise the landed cost of affected merchandise beyond normal customs duty, merchandise processing fees, and freight-related charges. The exact rate depends on the product, the exporting country, and the scope of the order, so it must be checked against the applicable classification and trade remedy ruling before entry is filed.
These duties are typically handled through customs compliance at importation. A broker or forwarder may help assemble entry data, but the importer of record remains responsible for accurate product descriptions, country of origin, and tariff classification, since those details determine whether the goods fall within a duty order.
Countervailing duties are different from antidumping duties, which address sales made below fair value rather than subsidization. A shipment can be subject to one, both, or neither, depending on the product and the current trade remedy measures in force.