Cvd duty

First of all you should understand thatt custom duty is levied to discourage import of foreign goods & encourage use of indigenous goods in their place.Countervailing duties(CVD) are mainly of 2 kinds-CVD u/s 3(1) of CETA & CVD u/s 3(5) of CETA.CVD 3(5) also known as special addl. duty (SAD).

CVD 3(1) is levied to counter-balance ED on imported goods if they would have been mfrd in India as Finished product.

CVD 3(5) is levied to counter-balance sales & local taxes that would have been collected if sale of goods imported would have been taken in India..