Definitions for "Countervailing Duties"
Keywords:  subsidy, subsidize, cvd, domestic, duty
Customs duties imposed on imports from specific countries in addition to the normal or preferential duty; such duties can be introduced where a subsidy is granted by the export country, provided such imports cause or threaten to cause material injury to Community producers of like products (Art. VI GATT and Reg. [EC] No 2026/97, OJ 1997 No L 288, p. 1)
This is levied on imports that may lead to price rise in the domestic market. It is imposed with the intention of discouraging unfair trading practices by other countries.
A tax levied on an imported product which raises the price in the domestic market as a means of counteracting unfair trading practices by other countries. CENVAT It is a more liberal and extensive scheme than the erstwhile MODVAT SCHEME which allows instant CENVAT Credit to be taken of duties such as Excise Duty, CVD paid on inputs and capital goods received in a factory for the manufacture of any dutiable final product (except matches). This credit can be utilised to pay Excise duty on any final product.