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A countervailing duty is a tariff or tax levied to neutralize the unwanted or unintended effects of other duties.
Countervailing duties in the United States are assessed by the U.S. International Trade Administration, which determines whether imports in question are being subsidized and, if so, by how much. If there is a determination that there is material injury to the competing domestic industry, the Department of Commerce will instruct the U.S. Customs and Border Protection to levy duties in the amount equivalent to the subsidy margins.
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