"AD/CVD: the duty orders that surprise first-time importers"

Antidumping and countervailing duty orders apply to named products from named countries. They sit on top of every other duty you pay, and the rates can run to several hundred percent of the value of the goods. An order can make a product completely uneconomic.

The part that catches people is that the amount you pay at entry is a deposit, not a final figure. The final rate is set later, sometimes years later, and if it is higher than the deposit you owe the difference. That liability follows the importer of record and it does not go away because you already sold the goods.

What the two duties are

Antidumping duty applies where a foreign producer sells into the United States below fair value, meaning below the price in their home market or below cost.

Countervailing duty applies where a foreign producer benefits from government subsidies.

Both can apply to the same product at the same time. The Department of Commerce sets the rates and the International Trade Commission decides whether the domestic industry is injured. Customs and Border Protection collects.

Rates are set per producer. Two factories in the same country making the same product can carry very different rates, and a factory with no individual rate gets a country-wide rate, which is usually the highest one.

Scope is written in words, not codes

This is the most common misunderstanding, and it is the one that causes the worst surprises.

An order defines what it covers with a written scope description. That description lists the physical characteristics of the covered merchandise, sometimes down to dimensions, materials, coatings and end uses.

Tariff classifications are usually listed alongside the scope, but the orders normally state that the codes are provided for convenience only and that the written description governs.

So two things follow. A product sitting in a listed classification may be outside the scope. And a product sitting in a different classification may be inside it. You cannot answer the question with a tariff code.

If your product sits near the edge of a scope description, you can request a scope ruling from Commerce. It takes time and it gives you a definitive answer.

Why the liability is retroactive

At entry, you pay a cash deposit at the current rate for your producer. That is an estimate.

Commerce reviews rates periodically through administrative reviews, which look back at a past period. When a review concludes, the final rate for that period is applied to entries made during it. If the final rate is higher than what you deposited, CBP issues a bill for the difference, plus interest.

The gap between entry and final assessment is commonly two to three years.

This means an importer can receive a bill for goods bought, sold and forgotten about two years earlier, calculated at a rate that did not exist when the order was placed. There is no practical way to pass that cost to customers at that point.

It also means your customs bond matters. A large retroactive bill can exceed a standard continuous bond, and CBP may require a much larger bond for importers of goods subject to these orders.

Evasion investigations

Because the duties are large, evasion is common, and there is a specific enforcement process for it.

Under the Enforce and Protect Act, an interested party can allege that an importer is evading an order, typically by declaring a false country of origin, misdescribing the goods, or routing them through a third country. CBP investigates.

During an investigation CBP can apply interim measures, including suspending liquidation and requiring cash deposits, before reaching a conclusion. An importer can find shipments held and deposits demanded while the matter is examined.

The relevance for anyone buying from Asia is direct. If a supplier offers to ship your goods from a neighbouring country to avoid a duty order, they are proposing an arrangement in which your company carries the exposure and they do not.

How to check before you order

Do this before you pay a deposit, not after the goods arrive.

1. Get the classification confirmed by your customs broker.

2. Search the active orders for your product type and country of origin. The International Trade Administration publishes the list of active AD/CVD proceedings and orders. Your broker can also check this.

3. Read the scope description itself, not a summary. Compare it against what you are actually buying, including materials, dimensions and any coating or finishing.

4. Identify your specific producer. If an order exists, find out whether your factory has its own rate or falls under the country-wide rate. Ask the factory directly and verify the name against the published rate list. The exact legal entity name matters, because a related company with a similar name may have a different rate.

5. If the answer is arguable, request a scope ruling before committing to volume.

What to do if an order covers your product

Reprice honestly. Add the deposit rate to your landed cost and see whether the product still works. Frequently it does not, and that is useful to learn before ordering.

Check whether a different producer carries a lower rate. Rates are producer-specific and the difference can be very large.

Look at a different origin, properly. Sourcing the same product from a country not covered by the order is legitimate. Shipping the same country's goods through that country is not, and the difference is a real analysis of where the goods were manufactured, not a change of paperwork.

Budget for the gap. If you proceed, understand that the deposit is not the final number. Some importers set aside a reserve against future assessment.

Increase your bond capacity before it becomes a problem.

Two things worth remembering

The importer of record carries this liability. Not the supplier who recommended the shipping route, not the freight forwarder, and not the sourcing agent. If your name is on the entry, the bill comes to you.

And a supplier will often not know, or will say the order does not apply to them. They are not the party filing the entry and they are not the party CBP will contact. Verify it yourself.

The short version

Check for an active order before you order samples, not after you have paid for a container. Read the scope description rather than trusting a tariff code, identify your exact producer, and treat the entry deposit as an estimate rather than a final cost.

Verified August 2026. Next review February 2027. Orders, rates and scope rulings change continually. Confirm current status with a licensed customs broker or customs attorney before committing to a purchase.