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Nisha Sharma posted an Question
July 09, 2021 • 23:09 pm 30 points
  • UGC NET
  • Commerce

What is countervailing duties and antidumping duty

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  • Rucha rajesh shingvekar best-answer

    https://www.slideshare.net/TradeRiskGuaranty/learn-the-basics-of-antidumping-and-countervailing-duties

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    Ronak kumari upadhyay Best Answer

    Countervailing duty (CVD) is a specific form of duty that the government imposes in order to protect domestic producers by countering the negative impact of import subsidies. CVD is thus an import tax by the importing country on imported products. To make their products cheaper and boost their demand in other countries, foreign governments sometimes provide subsidy to their producers. To avoid flooding of the market in the importing country with these goods, the government of the importing country imposes countervailing duty, charging a specific amount on import of such goods. Anti dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade.

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