US Initiates Trade Investigations on Brake Drums & EVs

The US Initiates Anti - dumping and Counter - vailing Duty Investigations on Brake Drums

On July 11,2024,the US Department of Commerce announced that,in response to an application from the US company Webb Wheel Products,Inc.it would launch anti-dumping and anti-subsidy investigations into brake drums imported from China and Turkey.The case involves products under the US customs codes 8708.30.5020 and 8708.30.5090.

Investigation Background and Timeline

The double anti-dumping and anti-subsidy investigation began on June 20,2024,when Webb Wheel Products,Inc.submitted an investigation application to the U.S.Department of Commerce,alleging that brake drums from China and Turkey were subject to dumping and subsidies,which harmed the interests of the U.S.domestic industry.According to U.S.statistics,in 2023,the amount of the products involved imported from China was approximately $520 million,and the amount of the products involved imported from Turkey was approximately $48.3 million.

Investigation Process and Expected Timeline

• PreliminaryRulingStage:
  • TheU.S.InternationalTradeCommission(ITC)isexpectedtoissueapreliminaryrulingonindustrydamagebyAugust5,2024atthelatest.IftheITCdeterminesthatimportedproductsposeasubstantialharmorthreatofharmtotheU.S.domesticindustry,theinvestigationwillcontinue.
• Preliminary counter - vailing ruling:
  • IftheITCissuesapreliminaryaffirmativedetermination,theU.S.DepartmentofCommercewillcontinueitscountervailingdutyinvestigationandisexpectedtoannouncethepreliminaryfindingsonSeptember13,2024.
• Preliminary anti - dumping ruling:
  • TheU.S.DepartmentofCommerceisexpectedtomakeapreliminaryanti-dumpingrulingonNovember27,2024.

Products Involved and Customs Codes

The brake drum products involved in this investigation are classified under the following US Customs Codes:

• 8708.30.5020
• 8708.30.5090

If the preliminary ruling results confirm the existence of dumping and subsidy behaviors,the US Department of Commerce will take temporary measures and impose temporary anti - dumping duties and counter - vailing duties on brake drums imported from China and Turkey.These measures will be temporarily in effect until a final ruling is made.If the final ruling also finds that dumping and subsidy behaviors exist,these temporary tax rates may be converted into formal tax rates and implemented in the long term.

The US Initiates Anti - dumping and Counter - vailing Duty Investigations on Low - Speed Passenger Vehicles

On the same day,July 11,2024,the US Department of Commerce also announced that,in response to an application from the American Personal Transportation Vehicle Manufacturers Coalition,it would launch anti-dumping and anti-subsidy investigations into low-speed personal transportation vehicles imported from China.The case involves products under the US customs code 8703.10.5030.

Investigation Background and Timeline

The investigation also began on June 20,2024.The applicant claimed that there were dumping and subsidy practices in the export of low-speed passenger vehicles from China.In 2023,the total value of the products involved imported from China to the United States was approximately $440 million.

Investigation Process and Expected Timeline

• PreliminaryRulingStage:
  • TheU.S.InternationalTradeCommission(ITC)isexpectedtoissueapreliminaryrulingonindustrydamagebyAugust5,2024atthelatest.IftheITCdeterminesthatimportedproductsposeasubstantialharmorthreatofharmtotheU.S.domesticindustry,theinvestigationwillcontinue.
• Preliminary counter - vailing ruling:
  • IftheITCissuesapreliminaryaffirmativedetermination,theU.S.DepartmentofCommercewillcontinueitscountervailingdutyinvestigationandisexpectedtoannouncethepreliminaryfindingsonSeptember13,2024.
• Preliminary anti - dumping ruling:
  • TheU.S.DepartmentofCommerceisexpectedtomakeapreliminaryanti-dumpingrulingonNovember27,2024.

Products Involved and Customs Codes

The low - speed personal transportation vehicle products involved in this investigation are classified under the following US Customs Codes:

• 8703.10.5030

Summary

The anti - dumping and counter - vailing duty investigations initiated by the US Department of Commerce on brake drums imported from China and Turkey and low - speed personal transportation vehicles imported from China reflect the USs concern for maintaining a fair competitive environment for the domestic industry.Relevant enterprises need to closely monitor the progress of the investigation and adjust their trade strategies according to the final ruling results.In the coming months,the preliminary and final ruling results of the ITC and the Department of Commerce will have a significant impact on the import and sales of these products.