Countervailing Charge
Duties & taxesRegulation (EU) 2016/1037 (Anti-subsidy)
PL: Opłata wyrównawcza | DE: Ausgleichsabgabe
Definition
A countervailing charge (countervailing duty) is a trade defence measure imposed on imported goods that benefit from subsidies in the exporting country, causing injury to EU industry. The charge aims to offset the artificial price advantage resulting from government grants, tax breaks or other public support to foreign producers.
The procedure is governed by EU Regulation 2016/1037 (basic anti-subsidy regulation). The European Commission initiates an investigation examining the existence of a subsidy, injury to EU industry, and causal link. A countervailing duty differs from anti-dumping duty in that it targets subsidisation (government support), not dumping (below normal value sales).
The procedure is governed by EU Regulation 2016/1037 (basic anti-subsidy regulation). The European Commission initiates an investigation examining the existence of a subsidy, injury to EU industry, and causal link. A countervailing duty differs from anti-dumping duty in that it targets subsidisation (government support), not dumping (below normal value sales).