Notice2025-11229
Certain Brake Drums From the People's Republic of China: Final Affirmative Countervailing Duy Determination
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 countervailable subsidies are being provided to producers and exporters of certain brake drums (brake drums) from the People's Republic of China (China). The period of investigation is January 1, 2023, through December 31, 2023.
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 26002-26004]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11229]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-175]
Certain Brake Drums From the People's Republic of China: Final
Affirmative Countervailing Duy Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain brake drums (brake drums) from the People's Republic of
China (China). The period of investigation is January 1, 2023, through
December 31, 2023.
DATES: Applicable June 18, 2025.
FOR FURTHER INFORMATION CONTACT: Nathan James or Olivia Woolverton, 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) 482-5305 or (202)
482-7452, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 3, 2024, Commerce published the Preliminary
Determination in the Federal Register and invited interested parties to
comment.\1\ On February 21, 2025, Commerce received a letter from CAIEC
Trailer Master Co., Ltd. (CAIEC) announcing its withdrawal from
participation as a mandatory respondent in this investigation.\2\ On
April 1, 2025, Commerce issued a post-preliminary analysis.\3\
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\1\ See 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) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM); see also 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 100465 (December 12, 2024) (correcting the
applicable date of the initial Federal Register notice).
\2\ See CAIEC Trailer's Letter, ``Caiec Trailer Withdrawal of
Participation in the Investigation,'' dated February 21, 2025.
\3\ See Memorandum, ``Post-Preliminary Analysis in the
Countervailing Duty Investigation of Certain Brake Drums from the
People's Republic of China,'' dated April 1, 2025.
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For a complete description of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\4\
The Issues and Decision Memorandum is a public document and is on file
electronically 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>.
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\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Certain Brake Drums from the People's Republic of
China,'' dated concurrently with, and herby adopted by, this notice
(Issues and Decision Memorandum).
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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.\5\ We received comments from parties on the Preliminary Scope
Decision Memorandum, which we address in the Final Scope Decision
Memorandum.\6\ 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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\5\ See Memorandum, ``Antidumping Duty 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, 2024
(Preliminary Scope Decision Memorandum).
\6\ See Memorandum, ``Antidumping Duty 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 (Final Scope
Decision Memorandum).
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Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in January 2025, Commerce verified the information reported
by Shandong ConMet Mechanical, Ltd./Weifang ConMet Mechanical Products
Co., Ltd. (collectively ConMet) \7\ for use in our final determination.
We used standard verification procedures, including an examination of
relevant accounting records and original source documents provided at
verification.\8\
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\7\ Commerce found Shandong ConMet Mechanical, Ltd. and Weifang
ConMet Mechanical Products Co., Ltd. to be cross-owned entities. See
Preliminary Determination, 89 FR at 95746 n. 15.
\8\ See Memorandum, ``Verification of Shandong ConMet
Questionnaire Responses,'' dated March 17, 2025.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs that were submitted by interested parties
in this investigation, are discussed 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.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific.\9\ For a full
[[Page 26003]]
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the
Preliminary Determination \10\ and the Issues and Decision Memorandum
at the section entitled ``Use of Facts Otherwise Available and
Application of Adverse Inferences.''
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\10\ See Preliminary Determination PDM at 5-24.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
We have modified our calculation of the subsidy rate for ConMet
based on comments received from interested parties and our verification
procedures. Additionally, based on CAIEC's withdrawal from the
investigation, we relied on AFA, based on section 776 of the Act, to
calculate the subsidy rate for CAIEC. Furthermore, we revised the AFA
rate to reflect changes to the mandatory respondents' rates to include
the three programs countervailed in the Post-Preliminary Analysis and
to correct certain plug rates selected under Commerce's AFA
hierarchy.\11\ For a discussion of these changes, see the Issues and
Decision Memorandum.
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\11\ See Issues and Decision Memorandum at Appendix.
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All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually examined, excluding any rates that are zero, de
minimis, or based entirely under section 776 of the Act. In this
investigation, Commerce calculated an individual estimated
countervailable subsidy rate for ConMet. Because the only individually
calculated rate that is not zero, de minimis, or based entirely on
facts otherwise available, is the estimated countervailable subsidy
rate calculated for ConMet, ConMet's rate is the rate assigned to all
other producers and exporters.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
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Subsidy rate (percent
Company ad valorem)
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CAIEC Trailer Master Co., Ltd./Trailer Master * 446.83
CVS Inc \12\..................................
Shandong ConMet Mechanical, Ltd./Weifang ConMet 11.94
Mechanical Products Co., Ltd..................
Guangzhou Joyhand Import & Export Co........... * 446.83
Hebei Iruijin Auto Parts Co., Ltd.............. * 446.83
Henan Broad Top Metal Work, Llc................ * 446.83
Henan Valiant Braking System Co................ * 446.83
HTS (Tianjin) Supply Chain Co., Ltd............ * 446.83
Panasia CVS (HK), Ltd.......................... * 446.83
Raw King Brake Parts Co., Ltd.................. * 446.83
Tianjin Textile Group Import and Export Inc.... * 446.83
Xiamen Tinmy Industrial Co., Ltd............... * 446.83
Xingtai Xunchiyoute Auto Parts Co.............. * 446.83
Yancheng Terbon Auto Parts Co.................. * 446.83
Yantai Hongtian Autoparts Co., Ltd............. * 446.83
Zhejiang Firsd Group Co., Ltd.................. * 446.83
All Others..................................... 11.94
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* Rate based on facts available with adverse inferences.
Disclosure
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\12\ Commerce found CAIEC Trailer Master Co., Ltd. and Trailer
Master CVS Inc to be cross-owned entities. See Preliminary
Determination, 89 FR at 95746 n. 14.
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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).
Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of entries of subject merchandise entered, or
withdrawn from warehouse, for consumption on or after December 3, 2024,
the date of publication of the Preliminary Determination in the Federal
Register. In accordance with section 703(d) of the Act, Commerce
instructed CBP to discontinue the suspension of liquidation of all
entries of subject merchandise entered or withdrawn from warehouse, on
or after April 2, 2025, but to continue the suspension of liquidation
of all entries of subject merchandise on or before April 1, 2025. If
the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation, and require a cash
deposit of estimated countervailing duties for such entries of subject
merchandise in the amounts indicated above, in accordance with section
706(a) of the Act. If the ITC determines that material injury, or
threat of material injury, does not exist, this proceeding will be
terminated, and all estimated duties deposited or securities posted as
a result of the suspension of liquidation will be refunded or
cancelled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of brake drums
from China. As Commerce's final determination is affirmative, in
accordance with section 705(b) 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. In addition, we are making available
to the ITC all non-privileged and non-proprietary
[[Page 26004]]
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 return or 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 is issued and published pursuant to sections
705(d) and 777(i) 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,
8704.10, 8704.23.01, 8704.32.01, 8704.43.00, 8704.52.00, 8704.60.00,
8708.50.61, 8708.50.6500, 8716.90.5010, 8716.31.00, 8716.39.00,
8716.40.00. 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. Use of Facts Otherwise Available and Application of Adverse
Inferences
IV. Changes Since the Preliminary Determination
V. Subsidies Valuation
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether Commerce Should Revise its Countervailability
Determination or Benefit Calculation for ConMet's Receipt of Land
Compensation Funds
Comment 2: Whether Bank Acceptance Notes (BANs) are
Countervailable
Comment 3: Whether Commerce Should Modify the Sales Denominator
Used to Calculate Shandong ConMet's Ad Valorem Subsidy
Comment 4: Whether Commerce Should Decline to Find Non-Use and
Apply an Adverse Facts Available (AFA) Rate for the Export Buyer's
Credit Program (EBCP)
Comment 5: Whether Commerce Should Revise the Benefit
Calculations for the Provision of Inputs for Less than Adequate
Remuneration (LTAR) to Exclude ConMet's ``Theoretical'' Delivery
Charges
Comment 6: Whether the Provision of Electricity for LTAR Program
is Specific
Comment 7: Whether the Input Producers/Suppliers are Government
Authorities
VIII. Recommendation
[FR Doc. 2025-11229 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.