On June 20, 2024, two new antidumping (AD) and countervailing duty (CVD) petitions were filed against imports of:
(1) Certain Brake Drums from China and Türkiye; and
(2) Certain Low Speed Personal Transportation Vehicles from China.
These AD/CVD investigations will be conducted by two federal agencies: the International Trade Commission ("ITC") will investigate whether the subject imports are a cause of injury. The U.S. Department of Commerce ("DOC") will investigate whether the subject imports are being sold to the United States at less than fair value ("dumping") or benefit from unfair government subsidies. Both agencies have to make affirmative findings of injury or threat of injury (ITC) or of dumping or subsidies (DOC) in order for AD/CVD duties to be imposed on the subject imports.
Below is a summary of each new AD/CVD case identifying the scope of products covered, the alleged AD/CVD margins, a list of the named exporters and importers, and the timeline for these AD/CVD investigations.
(1) Brake Drums from China and Türkiye
The AD/CVD petitions on Brake Drums from China and Turkey were filed by Webb Wheel Products, Inc. The brake drums subject to this investigation are used primarily for heavy duty trucks and trailers.
Scope
The merchandise subject to these petitions are certain brake drums made of gray cast iron, whether finished or unfinished, with an actual or nominal inside diameter of 14.75 inches or more but not over 16.6 inches, weighing more than 50 pounds. Unfinished brake drums are those that have undergone some turning or machining but are not ready for installation. Subject brake drums are included within the scope whether imported individually or with non-subject merchandise (for example, a hub), whether assembled or unassembled, or if joined with non-subject merchandise. When a subject drum is imported together with non-subject merchandise, such as, but not limited to, a drum-hub assembly, only the subject drum is covered by the scope.
Subject merchandise also includes finished and unfinished brake drums that are further processed in a third country or in the United States, including, but not limited to, assembly or any other processing that would not otherwise remove the merchandise from the scope of these investigations if performed in the country of manufacture of the subject brake drums. The inclusion, attachment, joining, or assembly of non-subject merchandise with subject drums either in the country of manufacture of the subject drum or in a third country does not remove the subject drum from the scope. The scope of this investigation does not include any products already covered by the AD and CVD Orders on certain chassis and subassemblies thereof from the People's Republic of China (A-570-135; C-570-136).
The scope also excludes composite brake drums that contain more than 40% steel by weight, while certain brake drums that meet the above criteria and that contain 40% or less steel by weight are within the scope.
See here for the petition's full proposed scope definition and exclusions.
Alleged AD/CVD Margins.
Petitioner calculated estimated dumping margins for the subject countries:
China – 300.83%
Turkey – 168.34%
Petitioner did not provide any specific subsidy margin calculations.
Named Exporters/ Producers
Petitioner included a list of companies that it believes are producers and exporters of the subject merchandise. See attached list of exporters here.
Named U.S. Importers
Petitioner included a list of companies that it believes are U.S. importers of the subject merchandise. See attached list of importers here.
(2) Low-Speed Personal Transportation Vehicles from China
The AD/CVD Petition on Low Speed Personal Transportation Vehicles from China was filed by the American Personal Transportation Vehicle Manufacturers Coalition which is comprised of Club Car, LLC ("Club Car") and Textron Specialized Vehicles, Inc. The subject LSPTVs are commonly referred to as golf carts.
Scope
The merchandise covered by this order consists of certain low-speed personal transportation vehicles (CLSPTV) and subassemblies thereof, whether finished or unfinished and whether assembled or unassembled, with or without tires, wheels, seats, steering columns and steering wheels, canopies, roofs, or batteries. CLSPTVs meeting this description are generally open air vehicles with a minimum of four wheels, a steering wheel, a traditional side-by-side or in-line row seating arrangement (i.e., non- straddle), foot operated accelerator and brake pedals, and a gross vehicle weight of no greater than 5,500 pounds.
See here for excerpts of the petition that provides additional detailed scope description and exclusions.
Alleged AD/CVD Margins.
Petitioner calculated estimated dumping margins for the subject countries:
China – 376.70% to 477.31%.
Named Exporters/ Producers
Petitioner included a list of companies that it believes are producers and exporters of the subject merchandise. See attached list of producers/ exporters here.
Named U.S. Importers
Petitioner included a list of companies that it believes are U.S. importers of the subject merchandise. See attached list of importers here.
For both AD/CVD investigations on Brake Drums and PLSTVs, here is the
Estimated Schedule of Investigations.
June 20, 2024 – Petitions filed
July 10, 2024 – DOC initiates investigation
July 11, 2024 – ITC Staff Conference
August 2, 2024 – ITC preliminary determination
November 17, 2024 – DOC CVD preliminary determination (assuming extended deadline) (9/13/24 – unextended)
January 16, 2025 – DOC AD preliminary determination (assuming extended deadline)
(11/27/24 – unextended)
May 31, 2025 – DOC final determination (extended)
July 15, 2025 – ITC final determination (extended)
July 22, 2025 – DOC AD/CVD orders issued (extended)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.