New AD/CVD Trade Petition Against Brake Drums from China and Türkiye
On June 19, 2024, a U.S. manufacturer of brake drums, filed a petition at the U.S. Department of Commerce and U.S. International Trade Commission for the imposition of antidumping and countervailing duties on the imports of certain brake drums from the People’s Republic of China and Türkiye.
Antidumping occurs when a foreign producer or exporter sells a product in the U.S. at a price below its “normal value” and is considered “dumped.” Countervailing duties are imposed when foreign governments provide financial contributions that subsidize enterprises or industries to benefit the production or exportation of goods.
The petitioner alleges that the unfairly traded imports are causing material injury to the U.S. industry producing subject brake drums and threaten to cause further material injury if remedial action is not taken.
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Sign-Up to Receive UpdatesMerchandise Description/Scope
The merchandise covered by this investigation is:
"Certain brake drums made of gray cast iron, whether finished or unfinished, with an actual or nominal inside diameter of 14.75 inches or more but not over 16.6 inches, weighing more than 50 pounds. Unfinished brake drums are those which have undergone some turning or machining but are not ready for installation. Subject brake drums are included within the scope whether imported individually or with non-subject merchandise (for example, a hub), whether assembled or unassembled, or if joined with non-subject merchandise. When a subject drum is imported together with non-subject merchandise, such as, but not limited to, a drum-hub assembly, only the subject drum is covered by the scope. (pg. I-4)"
According to the petition,
"The subject brake drums are a component of the braking system for motor vehicles principally designed for the transport of persons or goods, including but not limited to short and long-haul freight carriers, and a wide variety of trucks and trailers. These brake drums are used primarily, although not exclusively, on heavy-duty trucks and trailers. (pg. I-6)"
Foreign Producers and U.S. Importers
For inquiries regarding whether your company is listed as a foreign producer or U.S. importer, please contact Angela Chiang at angela.chiang@autocare.org.
Alleged Antidumping and Countervailing Duty Rates
The alleged antidumping (AD) and countervailing duty (CVD) rates are:
Country | Alleged AD Margins | Alleged CVD Margins |
---|---|---|
China | 300.83% | Above de minimis |
Türkiye | 168.34% | Above de minimis |
AD and CVD Investigation Process
The U.S. Department of Commerce (DOC) conducts an investigation to determine if imported goods are dumped and/or subsidized. The U.S. International Trade Commission (USITC) conducts a concurrent investigation to determine if the domestic industry is materially injured or threatened with material injury by these imports. Both agencies conduct a preliminary phase and, if needed, a final phase.
Approximate Timeline and Key Dates
Below is an approximate timeline and key dates for the antidumping and countervailing duty investigations at the Department of Commerce and the U.S. International Trade Commission.
Event | Approximate Date |
---|---|
Petition Filed | June 20, 2024 |
DOC Initiation | July 10, 2024 |
ITC Preliminary Investigation: | |
Questionnaires Due | July 5, 2024 |
Hearing/Conference | July 11, 2024 |
ITC Vote | Aug. 2, 2024 |
ITC Preliminary Determination | Aug. 5, 2024 |
DOC Investigation Schedule: | |
DOC Preliminary Antidumping Determination | Nov. 27, 2024 |
DOC Final Antidumping Determination | Feb. 10, 2025 |
DOC Preliminary Countervailing Determination | Sept. 13, 2024 |
DOC Final Countervailing Determination | Nov. 27, 2024 |
ITC Final Investigation: | |
ITC Final AD Determination | March 27, 2025 |
ITC Final CVD Determination | Jan. 13, 2025 |
There are strict statutory deadlines associated with these proceedings. Affected companies are strongly advised to seek guidance from trade counsel, customs brokers, or other subject matter experts as soon as possible.
Please reach out to Angela Chiang at angela.chiang@autocare.org if you have any questions.
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