Countervailing Duty
Duties & taxesRegulation (EU) 2016/1037 (Anti-subsidy)
PL: Cło Wyrównawcze | DE: Ausgleichszoll
Definition
A countervailing duty is an additional customs charge imposed on imports of goods that benefit from subsidies granted by the exporter's government. Subsidies can take the form of direct grants, tax breaks, preferential loans, below-market provision of raw materials, or other state support that reduces production costs.
The procedure for imposing countervailing duties in the EU is governed by Regulation (EU) 2016/1037. The European Commission investigates whether subsidies exist, whether they are specific, and whether subsidised imports cause injury to EU industry.
Countervailing duties are imposed for up to 5 years with the possibility of extension after an expiry review. Their rate corresponds to the amount of subsidy per unit of imported goods.
The procedure for imposing countervailing duties in the EU is governed by Regulation (EU) 2016/1037. The European Commission investigates whether subsidies exist, whether they are specific, and whether subsidised imports cause injury to EU industry.
Countervailing duties are imposed for up to 5 years with the possibility of extension after an expiry review. Their rate corresponds to the amount of subsidy per unit of imported goods.