Countervailing Duty (CVD)

A tax on imported goods and services designed to offset the domestic price effect of foreign export policies.

Countervailing duties are generally imposed by the International Trade Commission (ITC). These taxes are imposed because a subsidized product can be sold for less than market value; if an imported good is being sold below market value then local goods and other imported goods cannot compete. A countervailing duty is a special tax that raises the price of these goods to market value.In the past, they have been placed on steel from Canada imported into the USA and tubing imported from Argentina.