Tire Exporter Objects to Commerce's Scope Ruling on Truck Wheels From China

The Commerce Department illegally expanded the scope of the antidumping and countervailing duty orders on truck wheels from China to include truck wheels made in a third country using either Chinese-origin rims or Chinese-origin discs, but not both, exporter Asia Wheel Co., Ltd., said in an Aug. 11 complaint at the Court of International Trade. Since Asia Wheel makes truck wheels using only Chinese-origin discs, the agency illegally included these goods under the scope of the orders, the company argued (Asia Wheel Co. v. United States, CIT # 23-00143).

Asia Wheel also argued Commerce unreasonably determined that China is the COO of the truck wheels the company makes based on a finding that the Chinese-origin discs "did not undergo substantial transformation" when the exporter used them to make truck wheels in Thailand. The agency's substantial transformation analysis is "fundamentally flawed" since Commerce "disregarded the finished products" imported into the U.S., the brief said.

The exporter added that the scope ruling illegally expanded AD/CVD liability. The orders' scope says the duties will cover "rims and discs that have been further processed in a third country." Asia Wheel's truck wheel is a Chinese-origin disc further processed in Thailand, so only the disc part would be covered. The agency said instead that the entire wheel is subject to the duties.

The remaining count in the complaint concerns Commerce's direction to CBP to continue suspending the liquidation of Asia Wheel's imports even if they were shipped in before the date of the preliminary scope ruling. The company said it "lacked adequate notice" its wheels were "potentially subject to the orders until issuance of Commerce's preliminary scope ruling," or even when the agency started the scope inquiry.