Notice2025-11228
Certain Brake Drums From People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 18, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that certain brake drums (brake drums) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is October 1, 2023, through March 31, 2024.
Full Text
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<title>Federal Register, Volume 90 Issue 116 (Wednesday, June 18, 2025)</title>
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[Federal Register Volume 90, Number 116 (Wednesday, June 18, 2025)]
[Notices]
[Pages 26011-26014]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11228]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-174]
Certain Brake Drums From People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
certain brake drums (brake drums) from the People's Republic of China
(China) are being, or are likely to be, sold in the United States at
less than fair value (LTFV). The period of investigation (POI) is
October 1, 2023, through March 31, 2024.
DATES: Applicable June 18, 2025.
FOR FURTHER INFORMATION CONTACT: Samuel Frost, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-8180.
SUPPLEMENTARY INFORMATION:
Background
On January 29, 2025, Commerce published the Preliminary
Determination in the Federal Register and invited parties to
comment.\1\ For a full discussion of the issues raised by parties for
this final determination, see the Issues and Decision Memorandum.\2\
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\1\ See Certain Brake Drums from the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Postponement of Final Determination, and Extension of
Provisional Measures, 90 FR 8383 (January 29, 2025) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Certain Brake Drums from the People's Republic of
China,'' dated concurrently with, and hereby adopted by, this notice
(Issues and Decision Memorandum).
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The Issues and Decision Memorandum is a public document and is made
available to the public via Enforcement and Compliance's Antidumping
and Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
Scope of the Investigation
The products covered by this investigation are brake drums from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from parties. Commerce issued a Preliminary Scope Decision
Memorandum to address these comments and set aside a period of time for
parties to address scope issues in scope-specific case and rebuttal
briefs.\3\ We received comments from parties on the Preliminary Scope
Decision Memorandum, which we address in the Final Scope Decision
Memorandum.\4\ We have included additional Harmonized Tariff Schedule
of the United States (HTSUS) subheadings in the scope of the
investigation as compared with the scope published in the Preliminary
Determination, as shown in Appendix I.
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\3\ See Memorandum, ``Less-Than-Fair-Value Investigations and
Countervailing Duty Investigations of Certain Brake Drums from the
People's Republic of China and the Republic of T[uuml]rkiye:
Preliminary Scope Decision Memorandum,'' dated January 23, 2025.
\4\ See Memorandum, ``Less-Than-Fair-Value Investigations and
Countervailing Duty Investigations of Certain Brake Drums from the
People's Republic of China and the Republic of T[uuml]rkiye: Final
Scope Decision Memorandum,'' dated concurrently with this notice.
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Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in February and March 2025, Commerce verified the sales and
factors of production information submitted by Shandong ConMet
Mechanical Co., Ltd. (Shandong ConMet), for use in our final
determination. We used standard verification procedures, including an
examination of relevant sales and accounting records, and original
source documents provided by Shandong ConMet.\5\
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\5\ See Memoranda, ``Verification of the Questionnaire Responses
of Consolidated Metco, Inc. in the Less-Than-Fair-Value
Investigation of Certain Brake Drums from the People's Republic of
China,'' dated May 6, 2025; see also ``Verification of the
Questionnaire Responses of Shandong ConMet Mechanical Co., Ltd. in
the Less-Than-Fair-Value Investigation of Certain Brake Drums from
the People's Republic of China,'' dated May 6, 2025.
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by
interested parties in this investigation are addressed in the Issues
and Decision Memorandum. For a list of the issues raised by interested
parties and addressed in the Issues and Decision Memorandum, see
Appendix II to this notice.
Changes Since the Preliminary Determination
We made certain changes to the margin calculations for Shandong
ConMet since the Preliminary Determination. For a discussion of these
changes, see the Issues and Decision Memorandum.
China-Wide Entity and Use of Adverse Facts Available (AFA)
As discussed in the Preliminary Determination, Commerce assigned an
estimated weighted-average dumping margin to the China-wide entity on
the basis of AFA, pursuant to sections
[[Page 26012]]
776(a) and (b) of the Act.\6\ No party commented on our findings with
respect to the China-wide entity and the use of the highest dumping
margin alleged in the petition as the appropriate rate assigned to the
China-wide entity. Therefore, Commerce continues to find, pursuant to
sections 776(a) and (b) of the Act, that AFA is warranted in
determining the estimated weighted-average dumping margin for the
China-wide entity, and we continue to assign the highest dumping margin
alleged in the petition, (i.e., 160.79 percent) as the applicable AFA
rate, which continues to be corroborated by the highest transaction-
specific dumping margin calculated for the mandatory respondent.\7\
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\6\ See Preliminary Determination PDM at 15-17.
\7\ See Memorandum, ``Corroboration of Margin Based on Adverse
Facts Available,'' dated concurrently with this notice.
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Separate Rates
We received comments on our preliminary separate rate
determinations.\8\ Based on our analysis of the comments received, our
preliminary determinations with respect to separate rate eligibility
remain unchanged in the final determination.\9\
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\8\ See Issues and Decision Memorandum at Comment 1.
\9\ See Preliminary Determination PDM at 9-14.
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Combination Rates
Consistent with the Preliminary Determination, and Policy Bulletin
05.1,\10\ Commerce calculated producer/exporter combination rates for
Shandong ConMet. Further, Commerce has assigned this rate to the
producer/exporter combinations that are also eligible for a separate
rate.\11\
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\10\ See Enforcement and Compliance's Policy Bulletin No. 05.01,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigation involving Non-Market Economy
Companies,'' (April 5, 2025) (Policy Bulletin 05.1), available on
Commerce website at <a href="https://access.trade.gov/Resources/policy/bull05-1.pdf">https://access.trade.gov/Resources/policy/bull05-1.pdf</a>.
\11\ See Preliminary Determination PDM at 14.
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Final Determination
Commerce determines that the following estimated weighted-average
dumping margins exist:
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Cash deposit rate
Weighted-average (adjusted for
Producer Exporter dumping margin subsidy offsets)
(percent) (percent)
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Shandong ConMet Mechanical Co., Ltd...... Shandong ConMet Mechanical 77.14 77.14
Co., Ltd.
Liaoning Hechuang CV Parts MFG Co........ Liaoning Hechuang CV Parts 77.14 77.14
MFG Co.
Hebei OE Auto Spare Parts Co., Ltd....... Ningbo Qingchen 77.14 77.14
International Trade Co.,
Ltd.
Longyao County Yiheng Auto Parts Co., Ltd Qingdao Jasmine 77.14 77.14
International Trade Co.,
Ltd.
Shandong Lingang Nonferrous Metals Co., Qingdao Tordon Brake Co., 77.14 77.14
Ltd. Ltd.
Qiqihar Beimo Auto Parts Manufacturing Qiqihar Beimo Auto Parts 77.14 77.14
Co., Ltd. Manufacturing Co., Ltd.
Shandong Lingang Nonferrous Metals Co., Shandong Haoxin Co., Ltd.... 77.14 77.14
Ltd.
Shandong Hongma Engineering Machinery Shandong Hongma Engineering 77.14 77.14
Co., Ltd. Machinery Co., Ltd.
Longyao Gucheng Automobile Parts Factory. Shandong North Autotech Co., 77.14 77.14
Ltd.
Shandong Longji Machinery Co., Ltd....... Shanghai Winsun Auto Parts 77.14 77.14
Co., Ltd.
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China-Wide Entity...................................................... * 160.79 150.25
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* Rate based on facts available with adverse inferences.
Disclosure
We intend to disclose the calculations performed in this final
determination to interested parties within five days of any public
announcement or, if there is no public announcement, within five days
of the date of publication of this notice in the Federal Register in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of subject merchandise,
as described in Appendix I of this notice, which are entered, or
withdrawn from warehouse, for consumption on or after January 29, 2025,
the date of publication of the Preliminary Determination in the Federal
Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), Commerce will instruct CBP to require the following cash
deposits of estimated antidumping duties for all appropriate entries:
(1) for the producer/exporter combinations listed in the table above,
the applicable cash deposit rate will be equal to the estimated
weighted-average dumping margin listed in the table for that
combination, adjusted for subsidy offsets, if appropriate; (2) for all
combinations of Chinese producers/exporters of the merchandise under
consideration that have not established eligibility for separate rates,
the cash deposit rate will be equal to the estimated weighted-average
dumping margin established for the China-wide entity, adjusted for
subsidy offsets if appropriate; and (3) for all third-country exporters
of merchandise under consideration not listed in the table above, the
cash deposit rate is the cash deposit rate applicable to the Chinese
producer/exporter combination (or China-wide entity) that supplied that
third-county exporter or, if the producer/exporter combination does not
have its own rate, the cash deposit will be the cash deposit rate for
the China-wide entity.
These suspension of liquidation instructions and cash deposit
requirements will remain in effect until further notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
pass-through and export subsidies countervailed in a companion
countervailing duty (CVD) proceeding, when CVD provisional measures are
in effect. Accordingly, where Commerce has made a final affirmative
determination for domestic pass-through or export subsidies, Commerce
offsets the estimated weighted-average dumping margin by the
appropriate CVD rate. Commerce has continued to adjust the cash deposit
rate for export subsidies found in the companion CVD investigation by
the appropriate export subsidy rate; however, the suspension of
liquidation of provisional measures in the companion CVD case has been
[[Page 26013]]
discontinued.\12\ Therefore, we are not instructing CBP to collect cash
deposits based on the adjusted estimated weighted-average dumping
margin for export subsidies at this time.\13\ If the U.S. International
Trade Commission (ITC) makes a final affirmative determination of
injury due to both dumping and subsidies, then the cash deposit rate
will be revised effective on the date of publication of the ITC's final
affirmative determination in the Federal Register to be the company-
specific estimated weighted-average dumping margin adjusted for export
subsidies.
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\12\ See section 703(d) of the Act, which states that the
provisional measures may not be in effect for more than four months,
which in the companion CVD case is 120 days after the publication of
the preliminary determination, or April 1, 2025 (i.e., the last day
provisional measures are in effect).
\13\ Certain Brake Drums from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination, 89 FR 95744 (December 3, 2024); see also section
703(d) of the Act, which states that the provisional measures may
not be in effect for more than four months, which in the companion
CVD case is 120 days after the publication of the preliminary
determination, or April 2, 2025.
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ITC Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. As
Commerce's final determination is affirmative, in accordance with
section 735(b)(2) of the Act, the ITC will determine, within 45 days,
whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
brake drums from China. If the ITC determines that material injury or
threat of material injury does not exist, the proceeding will be
terminated and all cash deposits will be refunded or canceled, and
suspension of liquidation will be lifted. If the ITC determines that
such injury does exist, Commerce will issue an antidumping duty order
directing CBP to assess, upon further instruction by Commerce,
antidumping duties on all imports of the subject merchandise that are
entered, or withdrawn from warehouse, for consumption on or after the
effective date of the suspension of liquidation, as discussed above in
the section, ``Continuation of Suspension of Liquidation.'' In
addition, we are making available to the ITC all non-privileged and
non-proprietary information in our files, provided the ITC confirms
that it will not disclose such information, either publicly or under
administrative protective order (APO), without the written consent of
the Assistant Secretary for Enforcement and Compliance.
Administrative Protective Order
This notice will serve as the final reminder to parties subject to
an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return or destruction
of APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and the terms of an
APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act, and 19 CFR
351.210(c).
Dated: June 13, 2025.
Steven Presing,
Acting Deputy Assistant Secretary for Policy and Negotiations.
Appendix I
Scope of the Investigation
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.
Subject merchandise also includes finished and unfinished brake
drums that are further processed in a third country or in the United
States, including, but not limited to, assembly or any other
processing that would not otherwise remove the merchandise from the
scope of this investigation if performed in the country of
manufacture of the subject brake drums. The inclusion, attachment,
joining, or assembly of non-subject merchandise with subject drums
either in the country of manufacture of the subject drum or in a
third country does not remove the subject drum from the scope.
Specifically excluded is merchandise covered by the scope of the
antidumping and countervailing duty orders on certain chassis and
subassemblies thereof from the People's Republic of China. See
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Antidumping Duty Order, 86 FR 36093 (July 8, 2021) and
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Countervailing Duty Order and Amended Final Affirmative
Countervailing Duty Determination, 86 FR 24844 (May 10, 2021).
The scope also excludes composite brake drums that contain more
than 38 percent steel by weight.
The merchandise covered by this investigation is classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
subheading 8708.30.5020. The merchandise covered by this
investigation may be classifiable under HTSUS subheading
8708.30.5090 when entered as part of an assembly. Subject
merchandise may also enter under HTSUS subheading 8716.90.5060.
Although the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the merchandise covered
by this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Changes Since the Preliminary Determination
IV. Discussion of the Issues
Comment 1: Whether Hubei Xinxing Quanli Machinery Co., Ltd.
(Hubei Xinxing Quanli) and Shanxi Tangrong Machinery Manufacturing
Co., Ltd. (Shanxi Tangrong) Are Eligible for a Separate Rate
Comment 2: Whether to Revise the Domestic Inland Freight and
Brokerage and Handling Surrogate Values (SVs)
Comment 3: Whether Commerce Should Revise the SV for
Recarburizing Agent
Comment 4: Whether Commerce Should Revise the SV for Wooden
Packing Board
Comment 5: Whether Commerce Should Revise the SV for Electricity
Comment 6: Whether Commerce Should Revise the Surrogate
Financial Ratios
Comment 7: Whether Commerce Should Grant a Domestic Subsidy
Offset to Shandong ConMet
Comment 8: Whether Commerce Should Use the Cohen's d Test in its
Calculation of Shandong ConMet's Dumping Margin
Comment 9: Whether Commerce Should Recalculate Shandong ConMet's
Indirect Selling Expenses
Comment 10: Whether Commerce Should Revise the Drum Ratio Used
to Calculate Gross Unit Price
Comment 11: Whether Commerce Should Rely on Departure Date or
Arrival Date for Certain Movement Expenses
Comment 12: Whether Commerce Should Revise its Calculation of
Shandong ConMet's Insurance Expenses
Comment 13: Whether Commerce Should Revise Shandong ConMet's
Inland Freight Distance
Comment 14: Whether Commerce Should Revise Shandong ConMet's
Reported U.S. Rebates
Comment 15: Whether Commerce Should Revise its Treatment of
Shandong ConMet's Scrap
Comment 16: Whether Commerce Should Incorporate the Minor
Corrections Found at Verification
[[Page 26014]]
V. Recommendation
[FR Doc. 2025-11228 Filed 6-17-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on June 18, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.