U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Certain Chassis and Subassemblies Thereof from China
For Immediate Release
August 20, 2020
Contact: ITA Office of Public Affairs
WASHINGTON — Today, the U.S. Department of Commerce announced the initiation of antidumping (AD) and countervailing duty (CVD) investigations to determine whether certain chassis and subassemblies thereof (chassis) from China are being dumped in the United States, and whether Chinese producers of chassis are receiving unfair subsidies.
The petitions were filed by the Coalition of American Chassis Manufacturers, whose members are Cheetah Chassis Corporation (Fairless Hills, Pa.), Hercules Enterprises, LLC (Hillsborough, N.J.), Pitts Enterprises, Inc. (Pittsview, Ala.), Pratt Industries, Inc. (Bridgman, Mich.), and Stoughton Trailers, LLC (Stoughton, Wisc.).
In the AD investigation, Commerce will determine whether imports of chassis from China are being dumped in the U.S. market at less than fair value. The alleged dumping margin is 188.05 percent.
In the CVD investigation, Commerce will determine whether Chinese producers of chassis are receiving unfair government subsidies. Commerce will investigate 30 subsidy programs, including grant programs, tax programs, and government provision of loans and inputs provided for less than adequate remuneration.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of chassis from China materially injure or threaten material injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The petitioner estimated that U.S. imports of chassis from China were valued at approximately $250 million in 2019.
During Commerce’s investigations into whether chassis from China are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations by September 14. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for October 23, and the preliminary AD determination scheduled for January 6, 2021, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, Commerce will instruct U.S. Customs and Border Protection to begin collecting cash deposits from all U.S. companies importing chassis from China, as appropriate.
Final determinations by Commerce are scheduled for January 6, 2021, for the CVD investigation, and March 22, 2021, for the AD investigation, although these dates may be extended. If Commerce finds no dumping or unfair subsidization, or the ITC finds no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current administration, Commerce has initiated 286 new AD and CVD investigations – a 267 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 531 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits those companies’ production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.