The Antidumping Law
The U.S. AD law is designed to counter international price discrimination, commonly
referred to as "dumping." Generally, dumping occurs when a foreign firm sells
merchandise in the U.S. market at a price lower than the price it charges for a
comparable product sold in its domestic market.
The difference between a company’s U.S. sales price and the comparison market price
or cost is called the dumping “margin” which is often expressed as a percentage of
the U.S. sales price.
The Countervailing Duty Law
Under the CVD law, IA investigates complaints that foreign governments are unfairly
subsidizing their industries that export to the United States.
Examples of unfair subsidies are tax benefits related to exporting or
government-provided low-cost loans targeted to specific companies or industries.
While governments can take many actions which could be said to confer benefits on
their producers, not all of these actions are viewed as countervailing subsidies.
Generally, the benefit must be limited to a specific group of firms or industries or to a
firm's export activities in order to be covered under this law.
LIST OF ACRONYMS & ABBREVIATIONS
AD ANTIDUMPING
CBP U.S. CUSTOMS and BORDER PROTECTION
CS THE COMMERCIAL SERVICE
CVD COUNTERVAILING DUTY
DAS DEPUTY ASSISTANT SECRETARY
DOC DEPARTMENT OF COMMERCE
FTZ FOREIGN TRADE ZONE
GATT GENERAL AGREEMENT ON TARIFFS AND TRADE
IA IMPORT ADMINISTRATION
ITA INTERNATIONAL TRADE ADMINISTRATION
ITC INTERNATIONAL TRADE COMMISSION
MAC MARKET ACCESS AND COMPLIANCE
NAFTA NORTH AMERICAN FREE TRADE AGREEMENT
SAA STATEMENT OF ADMINISTRATIVE ACTION
TD TRADE DEVELOPMENT
WTO WORLD TRADE ORGANIZATION
THE TARIFF ACT OF 1930, AS AMENDED January 22, 1998
TIC TRADE INFORMATION CENTER
UNESCO UNITED NATIONS EDUCATIONAL, SCIENTIFIC, AND CULTURAL
ORGANIZATION
URAA URUGUAY ROUND AGREEMENT ACT
USTR UNITED STATES TRADE REPRESENTATIVE
Terminology