December 5, 2014
Trade Remedies: Antidumping and Countervailing Duties
Overview

in the statute. The ITA evaluates the petition, decides
whether to initiate an investigation, determines whether
What are they? Antidumping (AD) and Countervailing
dumping or subsidies exist, and calculates the amount of
Duties (CVD) address unfair trade practices by providing
dumping (dumping margin) or subsidy. If an investigation
relief to U.S. industries and workers that are “materially
results in final affirmative determinations by both agencies,
injured,” or threatened with injury, due to imports of like
the ITA issues an AD or CVD order directing U.S. Customs
products sold in the U.S. market at less than fair value
and Border Protection (CBP) to collect duties on the
(AD), or subsidized by a foreign government or public
imported merchandise.
entity (CVD).
Figure 1. Overview of AD/CVD Investigations
What is the relief provided? At the end of an investigative
process, in AD cases, the remedy is an additional duty
placed on the imported merchandise to offset the difference
between the price (or cost) in the foreign market and the
price in the U.S. market. In CVD cases, a duty equivalent to
the amount of subsidy is placed on the imports.
Who conducts AD and CVD investigations? The U.S.
International Trade Commission (USITC) determines if a
U.S. industry has suffered material injury; and the
International Trade Administration of the Department of
Commerce (ITA) determines the existence and amount of
dumping or subsidy.
What is the statutory authority for AD and CVD
investigations?
AD and CVD laws are found in Title VII of
the Tariff Act of 1930 (19 U.S.C. 1671-1677n, as
amended). U.S. laws and those of other World Trade
Organization (WTO) members must comply with
obligations under the WTO Antidumping and Subsidies
Agreements.
Supporting Views—Supporters of AD and CVD actions
say that they are necessary to shield U.S. industries and
workers from unfair competition, and that they help to
increase public support for additional trade liberalization
measures.

Opposing Views—Opponents, including some importers
What is the role of the International Trade
and downstream consuming industries, say that AD/CVD
Commission? The USITC determines whether a U.S.
actions create inefficiencies in the world trading system by
industry “is materially injured, or is threatened with
“artificially” raising prices on imported merchandise. Some
material injury, or the establishment of an industry in the
U.S. exporters are also concerned because U.S. products are
United States is materially retarded,” due to sales of the
subject to these AD/CVD actions in foreign markets.
targeted merchandise in the U.S. market.
Process
What are the steps in the investigative process?
Initiation. After a petition is filed simultaneously with the
How are AD and CVD investigations conducted?
ITA and the USITC, the ITA generally has 20 days to
Investigations are conducted through an administrative
determine if the petition has enough information and
process (see Figure 1) within specified time limits, which
industry support to initiate an investigation. If the ITA
can be extended under certain conditions. Each phase of an
decides not to initiate, the petition is denied and the
investigation is notified in the Federal Register.
proceedings end.
What is the role of the International Trade
USITC Preliminary Determination. If the ITA initiates the
Administration? The ITA is the “administering authority”
investigation, the USITC investigates whether there is a
www.crs.gov | 7-5700


Trade Remedies: Antidumping and Countervailing Duties
“reasonable basis to believe or suspect” that the U.S.
order. The ITA determines whether dumping or subsidies
industry has suffered material injury. The USITC normally
would be likely to continue or resume if the order is
has 45 days from the filing of the petition to make its
revoked; and the USITC conducts a similar review to
preliminary finding. If affirmative, the investigation
determine whether injury to the domestic industry would be
continues at the ITA. If negative, the investigation ends.
likely to continue or resume.
ITA Preliminary Determination. The ITA conducts its
Figure 2. U.S. AD/CVD Orders In Force by Country
preliminary investigation to consider whether there is a
“reasonable basis to believe or suspect” the existence of
dumping or subsidies. If affirmative, the ITA estimates the
amount of dumping or subsidies, directs U.S. Customs and
Border Protection to suspend liquidation (collection of final
duties) on the targeted merchandise and to collect bonds or
cash deposits from importers covering the estimated
amount. Whether negative or affirmative, the investigation
continues on to the final ITA phase. Preliminary
determinations take from 60-130 days from the initiation
date in CVD cases, and from 100-190 days in AD cases.
ITA Final Determination. Following the preliminary phase,
the ITA continues its investigation to determine whether the
targeted merchandise has been dumped or subsidized. In
CVD investigations, the final determination must generally
be made within 75 days of the ITA preliminary
determination; in AD cases, 75-135 days after the
preliminary determination. If affirmative, the investigation

continues to the final stage at the USITC. If negative, the
investigation is terminated.
Issues for Congress
USITC Final Determination. The investigation concludes at
Enforcement. Some in Congress assert that CBP
the USITC for the final injury phase. The Commission has
ineffectively enforces AD/CVD orders, either by not
45-75 days to make its final determination. If negative, the
promptly investigating allegations of duty circumvention,
investigation ends. If affirmative, the ITA issues an AD or
or under-collecting the amount of duties owed, and have
CVD order.
proposed legislation requiring CBP to take specific actions,
within a certain timeline, to address these allegations. Other
AD or CVD Order Issued. The ITA issues an AD or CVD
Members favor increasing CBP’s targeting capabilities to
order instructing U.S. Customs and Border Protection
prevent and counter duty evasion.
(CBP) to collect cash deposits for estimated duties owed on
all entries of the targeted merchandise.
WTO Rules. AD/CVD actions are subject to WTO dispute
settlement, and the United States has acted as both
Reviews
complainant and respondent in WTO disputes. The United
States recently won a dispute with China challenging AD
Are AD and CVD orders permanent? No. Orders are
actions on U.S. broiler parts. One recent case brought by
subject to several types of review, which could result in the
China challenges U.S. application of “targeted dumping,” a
dumping or subsidy margin being adjusted up or down. A
calculation method used if authorities see patterns of export
review could also lead to continuation or revocation of an
prices that differ significantly among different purchasers,
AD or CVD order.
regions, or time periods.
What is an administrative review? Each year, during the
Potential Member Involvement. The quasi-judicial
anniversary month of the publication of an AD or CVD
investigative process in U.S. law may indicate that
order, an interested party may request that the ITA conduct
Congress intended AD/CVD actions to be conducted apart
a review of an order to determine the actual amount of AD
from political influence. However, AD/CVD investigations
or CVD duties to be paid on the entries.
also involve constituents—either U.S. petitioning
companies, or U.S. importing companies possibly harmed
What is a changed circumstances review? Interested
by trade remedy actions. Thus, Members are sometimes
parties may also request that the ITA review an AD or CVD
asked to write letters on either side of a trade remedy action
order if they have questions about whether an order still
or to testify at hearings to support a constituent’s cause. For
applies; for example, if the U.S. industry is no longer
more information, see CRS Report RL32371, Trade
interested in covering certain products, or if the business
Remedies: A Primer, by Vivian C. Jones.
structure of the foreign manufacturer has changed.
Vivian C. Jones, vcjones@crs.loc.gov, 7-7823
What is a “sunset” review? No later than once every five

years, the ITA and USITC must review each AD or CVD
IF10018
www.crs.gov | 7-5700