Initiation of Antidumping Duty and Countervailing Duty Investigations of Certain Freight Rail Couplers and Parts Thereof from China and Mexico
On October 19, 2022, the Department of Commerce (Commerce) announced the initiation of antidumping duty (AD) and countervailing duty (CVD) investigations of certain freight rail couplers and parts thereof (freight rail couplers) from China and an AD investigation of freight rail couplers from Mexico.
Alleged Dumping Rates
| Country | Dumping Margin |
|---|---|
| China | 67.45-169.90 percent |
| Mexico | 160.05-187.08 percent |
Alleged Subsidy Rates
| Country | Subsidy Rate |
|---|---|
| China | Above de minimis |
de minimis = less than 1% for developed countries, less that 2% for developing countries
| Event | AD Investigation(s) | CVD Investigation(s) |
|---|---|---|
| Petition(s) Filed | September 28, 2022 | September 28, 2022 |
| DOC Initiation(s) Date | October 18, 2022 | October 18, 2022 |
| ITC Preliminary Determination(s) [1] | November 14, 2022 | November 14, 2022 |
| DOC Preliminary Determination(s) | March 7, 2023 | December 22, 2022 |
| DOC Final Determination(s) | May 22, 2023 | March 7, 2022 |
| ITC Final Determination(s) [2] | July 5, 2023 | April 21, 2023 |
| Issuance of Order(s) [3] | July 12, 2023 | April 28, 2023 |
Note: Commerce’s preliminary and final determination deadlines are governed by statute. For CVD investigations, the deadlines are set forth in sections 703(b) and 705(a)(1) of the Tariff Act of 1930, as amended (the Act). For AD investigations, the deadlines are set forth in sections 733(b) and 735(a) of the Act. These deadlines may be extended under certain circumstances.
[1] If the International Trade Commission (ITC) makes negative preliminary determinations of injury, the investigations are terminated.
[2]This will take place only in the event of final affirmative determinations from Commerce.
[3]This will take place only in the event of final affirmative determinations from Commerce and the ITC.
| Country | Volume/Value | 2019 | 2020 | 2021 |
|---|---|---|---|---|
| China | Volume (KG) | 22,906,629 | 11,924,947 | 15,231,536 |
| Value (USD) | $55,125,601 | $27,949,072 | $35,198,364 | |
| Mexico | Volume (KG) | 12,850,859 | 9,639,825 | 9,832,354 |
| Value (USD) | $24,581,779 | $22,463,753 | $20,204,699 |
Source: U.S. Census Bureau, accessed through IHS Markit’s Global Trade Atlas (Harmonized Tariff Schedule of the United States (HTSUS) subheading 8607.30.1000). Imports of freight rail couplers enter under an HTSUS subheading that covers subject and non-subject merchandise. In addition, unfinished merchandise or merchandise that is imported attached to finished rail cars may enter under other HTSUS subheadings. Therefore, publicly available import data may not accurately reflect actual imports of the freight rail couplers covered by the proposed scope of the investigations.
The petitioner is the Coalition of Freight Coupler Producers, the members of which are McConway and Torley, LLC (M&T) (Pittsburgh, PA) and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (the USW) (Washington, DC).
For general information and next steps, please refer to a list of initiation FAQs.
Additional case information including the scope of the investigation are on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). Once you log in, please refer to case numbers: A-570-145 and C-570-146, for the AD and CVD investigations for China; and A-201-857 for the AD investigation from Mexico.
Commerce currently maintains 660 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.
In the China CVD petition, there are 31 alleged subsidy programs, which we are treating as 33 subsidy programs, including grant programs, tax programs, loan programs, and the provision of goods and services for less than adequate remuneration programs. Additionally, we are initiating on the petitioner’s allegation of the creditworthiness of CRRC Corporation Limited. For more information on these subsidy programs, please refer to the subsidies enforcement library.