2025-11229NoticeWallet

Commerce Adds Duties to Chinese Brake Drums After Subsidy Finding

Published Date: 6/18/2025

Notice

Summary

The U.S. Department of Commerce found that Chinese makers of certain brake drums got unfair government help in 2023. Because of this, extra taxes (called countervailing duties) will be added to these brake drums starting June 18, 2025. This move helps U.S. businesses compete fairly and could affect prices for importers and buyers.

Analyzed Economic Effects

4 provisions identified: 0 benefits, 4 costs, 0 mixed.

Countervailing Duties Begin June 18, 2025

The Department of Commerce will apply countervailing duties to certain brake drums from the People’s Republic of China starting June 18, 2025. The rule says extra taxes will be added to those imported brake drums and notes this action can affect importers and buyers.

Company Duty Rates: 446.83% and 11.94%

Commerce assigned specific ad valorem countervailable subsidy rates: CAIEC Trailer Master Co., Ltd. and many named exporters received a 446.83% rate (rate based on facts available with adverse inferences), while Shandong ConMet Mechanical, Ltd./Weifang ConMet Mechanical Products Co., Ltd. and the "All Others" category were assigned 11.94%. These percentage rates are the estimated countervailable subsidy rates listed in the final determination.

Cash Deposits and Suspension of Liquidation

Commerce instructed U.S. Customs and Border Protection to collect cash deposits and suspend liquidation for entries of the subject brake drums entered on or after December 3, 2024. Commerce directed CBP to discontinue suspension for entries on or after April 2, 2025, but to continue suspension for entries on or before April 1, 2025, and says if the U.S. International Trade Commission issues a final affirmative injury determination, Commerce will reinstate the suspension and require cash deposits in the amounts indicated in the final determination.

Which Brake Drums Are Covered

The rule covers certain gray cast iron brake drums with an inside diameter of 14.75 inches or more but not over 16.6 inches and weighing more than 50 pounds, including finished or unfinished drums and certain HTSUS subheadings such as 8708.30.5020. The written product description in Appendix I is the controlling definition of covered merchandise.

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Key Dates

Published Date
6/18/2025

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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