Today’s Trade Term, which was found on www.export.gov is a good one to think about when searching for various subsidies to assist with your production or financing your project and calculating final costs including import duties.

Countervailable Subsidy

Foreign governments subsidize industries when they provide financial assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, credits against taxes, and loans at terms that do not reflect market conditions. The statute and regulations establish standards for determining when an unfair subsidy has been conferred. The amount of subsidies the foreign producer receives from the government is the basis for the subsidy rate by which the subsidy is offset, or “countervailed,” through higher import duties.

Definition by Export.Gov. You can find the original link here:

http://www.export.gov/exportbasics/eg_main_017485.asp

 

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