USDOC Issues Chinese Coupler CVD, Antidumping Duty Orders
Written by William C. Vantuono, Editor-in-Chief
Nanjing Zhongsheng Rolling Stock Components Co., Ltd. image
Based on “affirmative final determinations” by the U.S. Department of Commerce (USDOC) and the U.S. International Trade Commission (USITC), USDOC issued on July 14 a CVD (countervailing duty) order and Anti-Dumping Duty order on certain freight rail couplers and components produced in the People’s Republic of China.
Countervailing Duty Order
In accordance with section 705(d) of the Tariff Act of 1930, on May 19, 2023, USDOC published its affirmative final determination in the CVD investigation of freight rail couplers from China. On July 3, 2023, USITC notified USDOC of its final affirmative determination that “an industry in the United States is materially injured by reason of subsidized imports of freight rail couplers from China, within the meaning of section 705(b)(1)(A)(i) of the Act. Because USITC determined that imports of freight rail couplers from China are materially injuring a U.S. industry, unliquidated entries of such merchandise … entered, or withdrawn from warehouse, for consumption are subject to the assessment of countervailing duties … on or after March 3, 2023 … but will not be assessed on entries occurring after the expiration of the provisional measures period and before publication of USITCs final affirmative injury determination.”
Section 703(d) of the Tariff Act states that “suspension of liquidation instructions issued pursuant to an affirmative preliminary determination may not remain in effect for more than four months,” USDOC explained. USDOC published its Preliminary Determination on March 3, 2023, so the provisional measures period ended on June 30, 2023. Pursuant to section 707(b) of the Tariff Act, USDOC “will instruct U.S. Customs and Border Protection (USCBP) to terminate the suspension of liquidation and to liquidate, without regard to countervailing duties, unliquidated entries of freight rail couplers from China entered, or withdrawn from warehouse, for consumption after June 30, 2023 … These instructions suspending liquidation will remain in effect until further notice.”
USDOC said it also intends “to instruct USCBP to require cash deposits equal to the amounts as indicated [in the chart above] … Accordingly … CBP will require, at the same time as importers would deposit estimated normal customs duties on the subject merchandise, a cash deposit for each entry of subject merchandise equal to the subsidy rates listed [above]. The all-others rate applies to all producers or exporters not specifically listed [above], as appropriate.”
Access the Enforcement and Compliance, International Trade Administration, Department of Commerce CVD notice published in the Federal Register.
Anti-Dumping Duty Order
USDOC also issued an Anti-Dumping Duty Order on certain Chinese freight rail couplers and parts. Like the CVD, the agency’s are based its “affirmative final determination in the less-than-fair-value (LTFV) investigation … that an industry in the United States is materially injured … and that critical circumstances do not exist with respect to dumped imports of freight rail couplers from China … unliquidated entries of such merchandise from China, entered or withdrawn from warehouse for consumption, are subject to the assessment of antidumping duties … equal to the amount by which the normal value of the merchandise exceeds the export price (or constructed export price) of the merchandise … Antidumping duties will be assessed on unliquidated entries of freight rail couplers from China, or withdrawn from warehouse, for consumption, on or after March 13, 2023.”
USDOC will also instruct USCBP to require cash deposits equal to the estimated weighted-average dumping margins indicated in the table below [and] require, at the same time as importers would normally deposit estimated duties on subject merchandise, a cash deposit equal to the rates listed below. USDOC determined that all exporters of Chinese freight rail couplers are part of the China-wide entity.Accordingly, the China-wide entity rate listed below applies to all exporters.”
