China Steel Trailer Wheels: Prelim AD Cash Deposit Rates Take Effect, Retroactive for All
The Commerce Department made a preliminary affirmative antidumping determination that steel wheels 12 to 16.5 inches in diameter from China (A-570-090) is being sold in the U.S. at less than fair value. Commerce found "critical circumstances" for all Chinese companies, and will retroactively suspend liquidation and impose AD duty cash deposit requirements for all subject merchandise as of Jan. 22, 2019.
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Steel trailer wheels from China are also subject to an ongoing countervailing duty investigation. Commerce has already ordered suspension of liquidation and the collection of CV duty cash deposits for entries of merchandise subject to these investigations in its preliminary CV duty determination, issued in February (see 1902220017), with suspension of liquidation retroactive to Nov. 27, 2018.
Scope Changes for Third-Country Processing, Non-Trailer Wheels
Commerce is making changes to the scope of its AD/CV duty investigations to clarify the application of AD/CV duties to steel trailer wheels made in China but processed in third countries, adding the following paragraph:
"The scope includes rims, discs, and wheels that have been further processed in a third country, including, but not limited to, the painting of wheels from China and the welding and painting of rims and discs from China to form a steel wheel, or any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in China."
The agency is also adding scope exemptions for two types of steel wheels that may be 12 to 16.5 inches in diameter and meet the scope requirements on other respects, but are not used on trailers:
Excluded from the scope of the investigation are "steel wheels that meet the following specifications: steel wheels with a nominal wheel diameter ranging from 15 inches to 16.5 inches, with a rim width of 8 inches or greater, and a wheel backspacing ranging from 3.75 inches to 5.5 inches." Backspacing is the distance from the hub mounting surface to the inside lip of the wheel (measured in inches).
Also excluded from the scope are "steel wheels with wire spokes."
AD Suspension of Liquidation and Cash Deposit Requirements
Effective for entries on or after Jan. 22, 2019, Commerce will suspend liquidation for AD duty purposes, and require AD duty cash deposits, at the following AD rates (note that liquidation for these companies is already suspended as of Nov. 27, 2018, due to Commerce's CV duty investigation):
| Exporter | Producer | AD Rate | Cash Deposit* |
|---|---|---|---|
| Changzhou Chungang Machinery Co., Ltd. | Changzhou Chungang Machinery Co., Ltd. | 38.27% | 37.65% |
| China-wide Entity | 44.35% | 43.73% |
*As adjusted for export subsidies found in Commerce's concurrent CV duty investigation.
(The period of investigation is 01/01/18 - 06/30/18. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 1809040023 for a summary of initiation of this investigation.)
AD/CVD Operations contact -- Kyle Clahane (202) 482-5449
(Federal Register 04/22/19)