TCO - AD/CV Duties

TCO - AD/CV Duties
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Introduction.
The total cost of ownership is simply based on estimates of finances that are aimed at helping business persons both buyers and owners to determine the indirect and direct costs of a system or a product. The total cost of ownership (TCO) is a concept that is used in management accounting and can help to generate the full cost accounting or ecological economics.
TCO - AD/CV Duties
Importing of goods and services in the U.S is quite more expensive due to restrictions and regulations from the Antidumping (AD) and Countervailing (CV) duties. Due to this reason a supply chain consultant for a global company you have to be aware of the extra costs of importing goods in the U.S. There is an increase in cost because the U.S government seeks to reduce the channels or even break out completely the importation of goods. The concept of Antidumping comes in to restrict other countries from dumping their products in the United States at a cheaper price or even below the production costs and the selling price of their countries. The Anti-dumping duties help to protect the domestic producers of the U.S from external harm.
On the other hand countervailing duties are also of great importance to the U.S government because it seeks to counteract artificially low prices that are as a result of subsidies. The duties are imposed to importers to increase the prices of the prices of the lowly imported products to level up the cost of the product or even increase it prices so that the products locally produced can be safeguarded.
Conclusion.
US Customs can add significant costs to ownership when you add Anti-Dumping (AD) and Countervailing (CV) Duties to the equation. This is to protect all the local producers and industries in the U.S.