Types of Import Duties
- Ad Valorem: A percentage of the customs value (e.g., 5% of $10,000 = $500).
- Specific Duty: A fixed monetary amount per physical unit (e.g., $1.50 per kg).
- Compound Duty: A combination of both (e.g., 5% + $1.00/kg).
Trade Remedies: AD / CVD
Standard tariffs are predictable. Trade remedies are punitive and margin-destroying.
Anti-Dumping Duties (AD): Applied when a foreign company sells a product below "fair market value" to undercut domestic producers.
Countervailing Duties (CVD): Applied when a foreign government unfairly subsidizes its producers, allowing them to export cheaply.
AD/CVD rates can exceed 200%. Importers are responsible for these duties, and they apply strictly to the Country of Origin, not the country of export.