An explainer on U.S. export duty petitions affecting Canada
MONTREAL — The U.S. Department of Commerce is adding nearly 80 per cent in preliminary anti-dumping duties on exports of Bombardier’s CSeries commercial jet. The Montreal-based aircraft manufacturer’s (TSX:BBD.B) 100- to 150-seat plane faces a total tariff of almost 300 per cent when combined with last week’s almost 220 per cent countervailing duties.
Here’s what you need to know about U.S. export duties:
Q: What is the difference between countervailing and anti-dumping duties?
A: Countervailing duties are applied when the Department of Commerce determines that foreign governments unfairly subsidized the named producers and exporters. Anti-dumping duties are added if the department subsequently determines that the exported product is being sold in the United States at a price that is below that producer’s sales price in its home market or at a price that is lower than the cost of production.