Countervailing duty
Also called: CVD · anti-subsidy duty · telafi edici vergi
An additional duty that offsets subsidies granted by a foreign government to producers or exporters, when subsidised imports injure domestic industry. It is set after an investigation and may apply alongside anti-dumping duty on the same goods.
In practice
Products such as steel, solar equipment and electric vehicles have attracted CVDs in recent years, so supply chains from subsidising countries carry this risk.
EU
Türkiye
USA
UKRelated terms
- Anti-dumping duty
- An additional duty imposed on imports sold at prices below their normal value in the exporting country, when this causes injury to domestic industry.…
- Safeguard measure
- A temporary restriction, such as extra duty or a tariff quota, applied to imports of a product from all sources when a sudden increase seriously…
- Circumvention
- Changing the pattern of trade to avoid a trade-remedy duty without real economic justification, for example by assembling goods in a third country or…