Meaning : Countervailing duty
Category : Business
Sub Category : Import – Export
What does CVD mean or stand for ?
CVD is one of the many duties that are levied on a product that has been imported by International shipping.This could wither have been transported by either sea or air,the duties will stay.In addition to the CVD which is a small duty and in most cases is less than 3 % of the value of the goods that is imported.
The Basic duty on a product is the highest and this is not the same for all items.According to the HSN code that lists all the categories of items that can be imported like electronics,music instruments,auto spares etc.The basic duty will differ on each of these items and is set by the government budget of that financial year.
This basic duty is upwards of 5% -25% but is also 0% for many products.However CVD is a fixed rate and is levied on all products regardless of Basic duty.