Countervailing Duty
An additional duty imposed to offset foreign government subsidies on exported goods.
A countervailing duty (CVD) is an additional tariff imposed to offset subsidies provided by a foreign government to its exporters. Like antidumping duties, CVDs are product-specific and country-specific. The duty amount corresponds to the subsidy margin found during investigation. CVD and AD duties can both apply to the same product simultaneously. In the US, the Department of Commerce investigates subsidies, and the ITC determines whether the domestic industry is injured.