Antidumping Duty

An antidumping duty is a supplemental customs tariff imposed when the U.S. Department of Commerce finds that imported goods are being sold in the United States at less than fair value (dumped) and the U.S. International Trade Commission determines that this dumping materially injures a U.S. industry; the duty—usually calculated as the dumping margin (the difference between the normal value and the export price)—is collected by U.S. Customs and Border Protection as an additional duty or cash deposit at entry. For example, if Commerce determines a 25% dumping margin on imported steel pipe and the ITC finds injury, CBP will require importers to pay a 25% antidumping duty on each entry (typically as a cash deposit pending final assessment), raising the landed cost and helping level the competitive playing field.