China Trailer Wheels: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on steel wheels 12 to 1.6 inches in diameter from China (A-570-090/C-570-091). The CV duty investigation covers entries Jan. 1, 2017, through Dec. 31, 2017. The AD duty investigation covers entries Jan. 1, 2018, through June 30, 2018.
The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized steel wheels are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Sept. 24, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in November for CV duties and January for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.
If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the antidumping duty "China-wide rate," which can reach more than 200 percent for some products. Separate rate applications from Chinese producers and exporters will be available (here), and are due on or about Oct. 5.
AD/CVD Respondent Selection
Commerce will send quantity and value questionnaires to each potential respondent to the AD duty investigations, and will base respondent selection in that investigation on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one. Quantity and value questionnaires will be posted on the Commerce website. Responses are due Sept. 11.
In the CV duty investigation, Commerce will select respondents based on CBP import data. It intends to finalize respondent selection by Sept. 25
Scope of the AD/CVD Investigations
The scope of this investigation is certain on-the-road steel wheels, discs, and rims for tubeless tires with a nominal wheel diameter of 12 inches to 16.5 inches, regardless of width. Certain on-the-road steel wheels with a nominal wheel diameter of 12 inches to 16.5 inches within the scope are generally for road and highway trailers and other towable equipment, including, inter alia, utility trailers, cargo trailers, horse trailers, boat trailers, recreational trailers, and towable mobile homes. The standard widths of certain on-the-road steel wheels are 4 inches, 4.5 inches, 5 inches, 5.5 inches, 6 inches, and 6.5 inches, but all certain on-the-road steel wheels, regardless of width, are covered by the scope.
The scope includes rims and discs for certain on-the-road steel wheels, whether imported as an assembly, unassembled, or separately. The scope includes certain on-the-road steel wheels regardless of steel composition, whether cladded or not cladded, whether finished or not finished, and whether coated or uncoated. The scope also includes certain on-the-road steel wheels with discs in either a “hub-piloted” or “stud-piloted” mounting configuration, though the stud-piloted configuration is most common in the size range covered.
All on-the-road wheels sold in the United States must meet Standard 110 or 120 of the National Highway Traffic Safety Administration’s (NHTSA) Federal Motor Vehicle Safety Standards, which requires a rim marking, such as the “DOT” symbol, indicating compliance with applicable motor vehicle standards. See 49 C.F.R. § 571.110 and § 571.120. The scope includes certain on-the-road steel wheels imported with or without NHTSA’s required markings.
Certain on-the-road steel wheels imported as an assembly with a tire mounted on the wheel and/or with a valve stem or rims imported as an assembly with a tire mounted on the rim and/or with a valve stem are included in the scope of this investigation. However, if the steel wheels or rims are imported as an assembly with a tire mounted on the wheel or rim and/or with a valve stem attached, the tire and/or valve stem is not covered by the scope.
Excluded from this scope are the following:
- steel wheels for use with tube-type tires; such tires use multi piece rims, which are two-piece and three-piece assemblies and require the use of an inner tube
- aluminum wheels
- certain on-the-road steel wheels that are coated entirely with chrome
- steel wheels that do not meet Standard 110 or 120 of the NHTSA’s requirements other than the rim marking requirements found in 49 C.F.R. § 571.110S4.4.2 and § 571.120S5.2.
Certain on-the-road steel wheels subject to this investigation are properly classifiable under the following category of the Harmonized Tariff Schedule of the United States (HTSUS): 8716.90.5035 which covers the exact product covered by the scope whether entered as an assembled wheel or in components. Certain on-the-road steel wheels entered with a tire mounted on them may be entered under HTSUS 8716.90.5059 (Trailers and semi-trailers; other vehicles, not mechanically propelled, parts, wheels, other, wheels with other tires) (a category that will be broader than what is covered by the scope). While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the subject merchandise is dispositive.
Comments on the scope of these investigations are due by Sept.17.
Investigations Timetable
| Event | CV Duty | AD Duty |
|---|---|---|
| Petitions filed | 08/08/18 | 08/08/18 |
| DOC initiation date | 08/28/18 | 08/28/18 |
| ITC prelim determinations* | 09/24/18 | 09/24/18 |
| DOC prelim determinations† | 11/01/18 | 01/15/19 |
| DOC final determinations† | 01/15/19 | 04/01/19 |
| ITC final determinations‡ | 03/01/19 | 05/15/19 |
| Issuance of orders+ | 03/08/19 | 05/22/19 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
The Commerce Department fact sheet on the initiation of these investigations is (here). See 1808150032 for a summary of the petition requesting these investigations.
(Federal Register 09/05/18)