Countervailing Duty

A Countervailing Duty (CVD) is a specific tariff imposed by an importing country on foreign goods to neutralize the unfair competitive advantage gained by those goods due to a subsidy provided by the exporting country's government, thereby restoring a level playing field for domestic producers. These duties are levied only after a formal investigation confirms both the existence of a countervailable subsidy and a resulting material injury or threat of injury to the domestic industry.