If you import goods into the U.S., you’ve probably come across the terms ADD and CVD. These terms often appear during customs reviews and product classification checks. They aren’t paperwork details. They exist to prevent unfair pricing from foreign producers.
ITC Diligence International works with importers to identify potential risks tied to ADD/CVD, monitor applicable cases, and respond to duty exposure before it affects landed costs.
So what do they mean?
- ADD stands for Anti-Dumping Duties
- CVD means Countervailing Duties
Tariffs are hot in the news right now, and while both are a type of import tax, ADD and CVD work a bit differently. ADD and CVD target unfair trade practices, rather than foreign goods.
Let’s say you run a coffee shop. A multinational brand opens nearby and sells drinks below cost. They aren’t doing it to compete on quality or service. They're receiving support from outside sources that cover their losses. Your store loses business, and pricing completely shifts. ADD/CVD exists to correct this kind of imbalance.
To protect domestic industries, the U.S. Department of Commerce and the International Trade Commission investigate these situations. If they find evidence of unfair trade, they apply ADD/CVD to imports from the exporting country.
What Importers Should Do
U.S. Customs and Border Protection holds importers responsible. Importing a product tied to an active case, even unintentionally, may result in penalties or additional duty bills. These charges are enforceable and often expensive.
Before goods arrive at port, importers should confirm whether their products fall under any ADD/CVD orders. That includes checking classification codes, reviewing scope rulings, and watching for updates from the Department of Commerce.
But here’s the catch: importers, not foreign exporters, pay these duties. And often, ADD/CVD rates are finalized months after goods are already in the country. That means companies could get hit with surprise bills long after products are sold.
Know Before You Ship
ITC Diligence International supports importers through classification reviews, compliance planning, and risk monitoring. We help businesses identify exposure, avoid delays, and prevent cost overruns linked to duties. Our team works with brokers, logistics providers, and FTZ operators to deliver clear solutions.
Have questions about a product, import and export policies, or a duty rate? Let’s talk.
ITC Diligence International: Your Trusted Partner in Global Trade and Compliance Solutions
At ITC Diligence International, we specialize in helping businesses streamline global operations, navigate complex trade regulations with confidence, and unlock the full potential of Foreign Trade Zones. As international trade consultants with over two decades of experience, our expert team provides tailored solutions in FTZ setup, sub-operator solutions, customs brokerage, supply chain optimization, cargo insurance and bonded warehousing.
By combining deep regulatory expertise with a client-focused approach, we empower companies to achieve cost efficiencies and maintain compliance while staying competitive in today’s global markets.
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