countervailing duty

countervailing duty

       tariff or tax levied to neutralize the unwanted or unintended effects of other duties. When domestic producers are subject to sales taxes (sales tax) or turnover taxes (levied on gross sales), countervailing tariffs are sometimes imposed on imported goods from producers who are not subject to such taxes in their own countries. Similarly, by international agreement, one country may tax the domestic production or sale of goods in order to maintain the competitive position of foreign producers subject to its import tariffs. Alternatively, countervailing duties may be used to protect one set of domestic producers from another set.

      The term is sometimes interpreted as applying to customs duties imposed for the prevention of unfair competition by foreign rivals—many of whom benefit from a strongly organized industry, unduly cheap exchange rates (exchange rate), sweatshop labour, or subsidies (subsidy). Such duties are commonly known as antidumping duties. Countervailing duties are allowed under Article VI of the General Agreement on Tariffs and Trade, a trade agreement administered by the World Trade Organization.

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Universalium. 2010.

Look at other dictionaries:

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  • countervailing duty —  Import tax intended to protect a domestic industry.  ► “Anti dumping and countervailing duty laws (jointly referred to as Title VII laws), for example, are used to counter the alleged practices of dumping and government subsidization,… …   American business jargon

  • countervailing duty — noun a) A duty levied on an imported article to offset the unfair price advantage it holds due to a subsidy paid to producers or exporters by the government of the exporting country if such imports cause or threaten injury to a domestic industry …   Wiktionary

  • countervailing duty — /ˌkaʊntəveɪlɪŋ ˈdjuti/ (say .kowntuhvayling dyoohtee) noun Law a duty to prevent the dumping of goods by imposing a duty on the importer equal to the exporter s government subsidy …   Australian-English dictionary

  • countervailing duty — / kaυntəveɪlɪŋ ˌdju:ti/ noun a duty imposed by a country on imported goods, where the price of the goods includes a subsidy from the government in the country of origin. Also called anti dumping duty …   Dictionary of banking and finance

  • countervailing duty — noun a duty imposed to offset subsidies by foreign governments • Hypernyms: ↑duty, ↑tariff …   Useful english dictionary

  • countervailing duty — An extra import duty imposed by a country on certain imports. It is usually used to prevent dumping or to counteract export subsidies given by foreign countries …   Big dictionary of business and management

  • countervailing duty — extra payment imposed by a government on imported goods in order to protect local businesses …   English contemporary dictionary

  • countervailing duty — noun an import tax imposed on certain goods in order to prevent dumping or counter export subsidies …   English new terms dictionary

  • duty — A tax on imports, exports, or consumption goods. Bloomberg Financial Dictionary There are two main types of duty collected by HM Customs and Excise: one is import duty , which is duty charged on goods imported into the European Union ( EU); and… …   Financial and business terms

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