China Brake Drums Ruled Unfairly Cheap: Duties Likely Incoming
Published Date: 1/29/2025
Notice
Summary
The U.S. Department of Commerce found that brake drums from China are likely being sold in the U.S. for less than fair value, which could mean unfair pricing. This affects Chinese brake drum exporters and U.S. businesses that buy them. The final decision is delayed, and temporary trade rules are extended, so watch for updates and possible extra costs starting now through March 2024.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 3 costs, 0 mixed.
Imports: Suspension of Liquidation Starts
Starting on January 29, 2025, U.S. Customs and Border Protection will be directed to suspend liquidation of imports of the covered brake drums and require a cash deposit for entries entered, or withdrawn from warehouse, for consumption on or after the publication date. The cash deposit must equal the estimated weighted-average dumping margin listed by Commerce for the relevant producer/exporter or the China-wide entity.
Very High Preliminary Duty Rates Listed
Commerce preliminarily assigned estimated weighted-average dumping margins and cash deposit rates: multiple named producer/exporter combinations were assigned 109.64 percent, while the China-wide entity was assigned a dumping margin of 160.79 percent and an adjusted cash deposit rate of 150.25 percent. These percentage rates are the basis for the cash deposits described in the suspension of liquidation instructions.
Final Decision Delayed; Provisional Measures Extended
Commerce is postponing the final determination and extending provisional measures: provisional measures are extended from a four-month period to a period not greater than six months, and Commerce will make its final determination no later than 135 days after the publication of this preliminary determination. The extension request was made on December 11, 2024, and Commerce is granting the postponement in light of an affirmative preliminary determination.
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Key Dates
Department and Agencies
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