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
Department and Agencies
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Previous / Next Documents
Previous: 2025-11228, Certain Brake Drums From People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
The U.S. Department of Commerce found that brake drums from China are being sold in the U.S. for less than their fair price. Starting June 18, 2025, extra duties will apply to these imports to protect American businesses. This means importers might pay more, and U.S. brake drum makers get a fairer chance to compete.
Next: 2025-11230, Certain Brake Drums From the Republic of Türkiye: Final Affirmative Determination of Sales at Less Than Fair Value
The U.S. Department of Commerce found that brake drums from Türkiye are being sold in the U.S. for less than their fair price. Starting June 18, 2025, importers of these brake drums may face extra duties to level the playing field. This decision helps protect American businesses from unfair pricing and keeps the market fair.