11 August 2015
Planning to import products for trading. How do I treat CVD duties and use it to my advantage? Planning to supply the importance to manufactures.
CVD means Countervailing Duties. Countervailing Duty CVD is charged under import of specific goods listed by government of importing country as per their Foreign Trade Policy. CVD (Countervailing Duty) is imposed to balance the price of the same product of domestic producers and the price of foreign producers based on the export subsidy they avail from their exporting country. If CVD is not imposed on such products, the said products seriously makes adverse impact in importing country thereby minimize the economic growth. So the main reason for charging CVD is to balance the market price of importing country to protect domestic manufacturers from the subsidies extended to the export subsidy to same product at exporting country. In other words, the countervailing duty CVD is charged in an importing country to counter the negative impact of import subsidies to safeguard domestic manufacturers. When imposing CVD to such products, the price of such imported products is being equally competitive.
World Trade Organization (WTO) clearly specifies and explains their member countries, about the methods and process for imposing CVD and the circumstances to impose countervailing duty CVD by importing country.
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