If you want to know what is Countervailing duty (CVD) and what is the importance of CVD in import duty calculation.
You are on the right page!
With the help of this article, you will understand the importance of CVD.
Hello, friends welcome to another fresh article of “Indiancustoms.info”, Here in this article I explained what is a countervailing duty (CVD) and what it play important role in import duty calculation.
The countervailing duty is also known as CVD, This is mainly applicable on some specific goods import.
Before the implementation of GST, CVD applied to most of the imported goods.
So, Now let’s understand what is CVD and why it is important.
What is Countervailing Duty (CVD)?
The countervailing duty (CVD) is charged on import of some specific goods specified by Customs or the Government of importing country according to their Foreign trade policy.
CVD is imposed to protect domestics producers of that products, by imposing CVD Government balance the price of imported goods price and domestics products price.
The governments also consider export subsidies they avail from their exporting country before imposing CVD on goods.
In other words, we can say that CVD is imposed on goods to counter the negative impact of low-value imports of goods.
When imposing CVD on such products, the price of such imported products is being equally competitive.
All the countries who have membership in the World Trade Organization (WTO) are imposed countervailing duty (CVD) as per World Trade Organization (WTO) guideline.
World Trade Organization (WTO) already give guideline to their member countries about processes and method to impose CVD on goods.
I hope this article helps you to understand what is countervailing duty (CVD) and how it’s plays important role in import duty calculation. If anyone has any suggestions or queries please comment in the comment box.