On July 30, 2020, the Coalition of American Chassis Manufacturers (Coalition) filed antidumping (AD) and countervailing duty (CVD) petitions on certain chassis and subassemblies thereof from China. The Coalition consists of Cheetah Chassis Corporation, Hercules Enterprises, LLC, Pitts Enterprises, Inc., Pratt Industries, Inc. and Stoughton Trailers, LLC.
The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of chassis and subassemblies.
Scope
Per the petition:
The merchandise covered by this investigation are chassis and subassemblies thereof, whether finished or unfinished, whether assembled or unassembled, whether coated or uncoated, regardless of the number of axles, designed primarily for use in the carriage of containers, or other payloads (including self-supporting payloads) that can be attached by twistlocks, slide pins or similar attachment devices, for road, marine roll-on/roll-off (RORO) and/or rail transport. Chassis are typically, but are not limited to, rectangular framed trailers with a suspension and axle system, wheels and tires, brakes, a lighting and electrical system, a coupling for towing behind a truck tractor, and a locking system or systems to secure the shipping container or containers attached to the chassis.
Subject merchandise includes, but is not limited to, the following subassemblies:
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Chassis frames, or sections of chassis frames, including kingpins or kingpin assemblies, bolsters consisting of transverse beams with locking or support mechanisms, goosenecks, drop assemblies, extension mechanisms and/or rear impact guards;
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Running gear assemblies or axle assemblies for connection to the chassis frame, whether fixed in nature or capable of sliding fore and aft or lifting up and lowering down, which may or may not include suspension(s) (mechanical or pneumatic), wheel end components, slack adjusters, axles, brake chambers, locking pins, and tires and wheels;
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Landing gear (legs) or landing gear assemblies, for connection to the chassis frame, capable of supporting the chassis when it is not engaged to a tractor; and
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Assemblies and/or components that connect to the chassis frame or a section of the chassis frame, such as, but not limited to, pintle hooks or B-trains (which include a fifth wheel), which are capable of connecting a chassis to a converter dolly or another chassis.
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Importation of any of these subassemblies, whether assembled or unassembled, constitutes an unfinished chassis for purposes of this investigation.
Subject merchandise also includes chassis, whether finished or unfinished, entered with or for further assembly with components such as, but not limited to: hub and drum assemblies, brake assemblies (either drum or disc), axles, brake chambers, suspensions and suspension components, wheel end components, landing gear legs, spoke or disc wheels, tires, brake control systems, electrical harnesses and lighting systems.
Processing of finished and unfinished chassis and components such as trimming, cutting, grinding, notching, punching, drilling, painting, coating, staining, finishing, assembly, or any other processing either in the country of manufacture of the in-scope product or in a third-country does not remove the product from the scope.
Inclusion of other components not identified as comprising the finished or unfinished chassis does not remove the product from the scope.
This scope excludes dry van trailers, refrigerated trailers and flatbed trailers.
The finished and unfinished chassis subject to this investigation are typically classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 and 8716.90.5060. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive.
Estimated Margins
The Coalition alleges a dumping margin of 211.49%. The Coalition alleges significant subsidy margins, although the petition does not quantify the alleged net subsidy margin.
Estimated Schedule of Investigation
The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):
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July 30, 2020 — Petition is filed.
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August 19, 2020 — DOC initiates investigation.
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August 20, 2020 — ITC staff conference (estimated).
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September 14, 2020 — Deadline for ITC preliminary injury determination.
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October 23, 2020 — Deadline for DOC preliminary CVD determination, if deadline is NOT postponed.
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December 28, 2020 — Deadline for DOC preliminary CVD determinations, if deadline is fully postponed.
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January 6, 2021 — Deadline for DOC preliminary AD determinations, if deadline is NOT postponed.
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February 25, 2021 — Deadline for DOC preliminary AD determinations, if deadlines is fully postponed.
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July 12, 2021 — Deadline for DOC final AD and CVD determinations, if all deadlines are fully postponed.
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August 26, 2021 — Deadline for ITC final injury determination, if all DOC deadlines are fully postponed.