Anti-Dumping Duty

What Is an Anti-Dumping Duty?

An anti-dumping duty is an extra tariff imposed by a government on imported goods that are being sold below their normal value (often below the cost of production, or below the price charged in the exporter's home market), to protect domestic industries from unfairly cheap competition.

How Does an Anti-Dumping Duty Work?

A domestic industry or government initiates an investigation into whether a specific imported product is being "dumped." If dumping is confirmed and shown to harm the domestic industry, the government imposes an additional duty on that product, calculated to offset the price gap, on top of standard import tariffs.

Why Anti-Dumping Duties Matter

Anti-dumping duties can apply retroactively and vary significantly by exporting country and even by specific manufacturer, making them a major, sometimes unpredictable, cost factor for importers of affected goods (common categories include steel, solar panels, and certain chemicals). Importers need to check whether their specific HS code and country of origin combination is subject to an active anti-dumping order before finalizing landed cost estimates.