Petition Filed for New AD/CV Duties on Rail Coupler Systems
The Coalition of Freight Coupler Producers seeks the imposition of new antidumping and countervailing duties on freight rail coupler systems from China, it said in a petition filed with the Commerce Department and the International Trade Commission Sept. 28. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers. The coalition consists of Amsted Rail Company and McConway and Torley LLC.
Proposed Scope
The petition proposes the following scope for the investigations:
The scope of this investigation covers certain freight rail car coupler systems and components thereof. Subject freight rail car coupler systems are composed of knuckles, coupler bodies, coupler yokes, and follower blocks. Subject coupler systems and components are included within the scope whether finished or unfinished, whether assembled fully or partially or unassembled, whether mounted or unmounted, or if joined with non-subject merchandise, such as other non-subject system parts or a completed rail car. Only the subject coupler system and components are subject to duties if imported with or mounted with other non-subject merchandise. Subject freight rail coupler components imported individually independent from a coupler system are also included within the scope of the investigation.
A coupler system (also known as a "coupling") is the mechanism used to connect freight rail cars together. The knuckles function as interlocking parts of the couplers that close automatically due to the force of the freight rail cars coming together. The coupler yoke functions as the pocket for the draft gear that connect couplers to the freight car. The follower block is a rectangularly shaped block of steel that is interposed between the back end of the coupler and the front working end of the draft gear.
The products covered by the scope of this investigation, when imported into the United States, meet, intend to meet, or exceed the Association of American Railroads ("AAR") specifications of M211, "Foundry and Product Approval Requirements for the Manufacture of Couplers, Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts" and/or AAR M215 "Coupling Systems," or other equivalent domestic or international standards (including any revisions to the standard(s)). Subject merchandise include: (1) E and E/F couplers; (2) F couplers; (3) E yokes; (4) F yokes; (5) E and F knuckles; and (6) and E and F type follower blocks. The inclusion, attachment, joining, or assembly of non-subject components with subject components or systems does not remove the subject components or systems from the scope.
The country of origin for subject coupler systems and components, whether fully assembled, unfinished, semi-finished, or finished, or attached to a rail car, is the country where the subject coupler components were cast and/or forged. Subject merchandise includes coupler components as defined above that have been further processed or further assembled, creating a more complex assembly in a third country, including those coupler components attached to a rail car in third countries. Only the value of the subject merchandise if entered attached to other non-subject products including the rail car will be subject to duties.
The couplers that are the subject of this investigation are currently classifiable in the Harmonized Tariff Schedule of the United States ("HTSUS") statistical reporting numbers 8607.30.1000. Subject merchandise attached to finished rail cars may also enter under HTSUS heading 8606 or under subheading 980300 if imported as an Instrument of International Traffic. These HTSUS provisions are given for reference and customs purposes only, and the description of merchandise is dispositive for determining the scope of the product included in this petition.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petition to determine whether the petition meets the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petition meets these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due on or about Oct. 18.