Notice2026-01598
Certain Brake Drums From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
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
January 27, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Webb Wheel Products, Inc. (Webb), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of compacted graphite iron (CGI) brake drums from the People's Republic of China (China) are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on certain brake drums (brake drums) from China.
Full Text
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<title>Federal Register, Volume 91 Issue 17 (Tuesday, January 27, 2026)</title>
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[Federal Register Volume 91, Number 17 (Tuesday, January 27, 2026)]
[Notices]
[Pages 3435-3437]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01598]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-174, C-570-175]
Certain Brake Drums From the People's Republic of China:
Initiation of Circumvention Inquiry on the Antidumping and
Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Webb Wheel Products, Inc.
(Webb), the U.S. Department of Commerce (Commerce) is initiating a
country-wide circumvention inquiry to determine whether imports of
compacted graphite iron (CGI) brake drums from the People's Republic of
China (China) are circumventing the antidumping duty (AD) and
countervailing duty (CVD) orders on certain brake drums (brake drums)
from China.
DATES: Applicable January 27, 2026.
FOR FURTHER INFORMATION CONTACT: Justin Enck at (202) 482-1614 or
Walter Schaub at (202) 482-0907, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On November 17, 2025, pursuant to section 781(d) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.226(k), Webb filed a
circumvention inquiry request \1\ alleging that CGI brake drums
produced in China, including model number M328D557, produced by PanAsia
CVD (HK) Limited (PanAsia), constitute later-developed merchandise that
are circumventing the AD and CVD orders on brake drums from China,\2\
and accordingly, should be included within the scope of the Orders.
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\1\ See Webb's Letter, ``Request for Anti-Circumvention Inquiry
Pursuant to Section 781(d) of the Tariff Act of 1930,'' dated
November 17, 2025 (Circumvention Request).
\2\ See Certain Brake Drums from the People's Republic of China
and the Republic of T[uuml]rkiye: Antidumping Duty Orders, 90 FR
38730 (August 12, 2025) (AD Order); see also Certain Brake Drums
from the People's Republic of China and the Order) (collectively,
Orders).
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Due to a backlog of documents that were electronically filed via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS) during the Federal
Government shutdown, on November 24, 2025, Commerce tolled all
deadlines in administrative proceedings by 21 days.\3\ On December 30,
2025, Commerce extended the initiation deadline by an additional 15
days, in accordance with 19 CFR 351.226(d)(1).\4\
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\3\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
\4\ See Memorandum, ``Extension of Circumvention Inquiry
Initiation Deadline,'' dated December 30, 2025.
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On November 27, 2025, CAIEC Trailer Master Co., Ltd. (CAIEC
Trailer) filed opposition comments in response to the Circumvention
Request.\5\ On December 17, 2025, Webb submitted rebuttal comments in
response to CAIEC Trailer's Comments.\6\ On January 2, 2026, we issued
a supplemental questionnaire to Webb.\7\ On January 12, 2026, Webb
filed its response to our request for additional information.\8\
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\5\ See CAIEC Trailer's Letter, ``CAIEC TRAILER's Rebuttal
Comments on Request for Anti-Circumvention Inquiry,'' dated November
27, 2025 (CAIEC Trailer's Comments).
\6\ See Webb's Letter, ``Rebuttal Comments and Factual
Information in Response to CAIEC Trailer Master's Pre-Initiation
Comments,'' dated December 17, 2025 (Webb's Rebuttal Comments).
\7\ See Commerce's Letter, ``Circumvention Inquiry Request
Supplemental Questionnaire,'' dated January 2, 2026.
\8\ See Webb's Letter, ``Response to Circumvention Inquiry
Supplemental Questionnaire,'' dated January 12, 2026.
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Scope of the Orders
The merchandise covered by these Orders 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. For a full description of the
scope of the Orders, see the appendix to this notice.\9\
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\9\ See also Initiation Checklist, ``Certain Brake Drums from
the People's Republic of China,'' dated concurrently with, and
hereby adopted by, this notice (Initiation Checklist), at Attachment
I.
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers compacted graphite iron brake
drums with an actual or nominal inside diameter of 14.75 inches or more
but not over 16.6 inches, weighing more than 50 pounds,\10\ that are
produced in China and exported to the United States, including, for
example, model number M328D557 produced by PanAsia CVD (HK)
Limited.\11\
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\10\ See Webb's Rebuttal Comments at 8.
\11\ See Initiation Checklist.
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Initiation of Circumvention Inquiry
Section 351.226(d)(1)(iii) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and
[[Page 3436]]
initiate a circumvention inquiry.'' Section 351.226(c)(1) of Commerce's
regulations, in turn, requires that each circumvention inquiry request
allege ``that the elements necessary for a circumvention determination
under section 781 of the Act exist'' and be ``accompanied by
information reasonably available to the interested party supporting
these allegations.'' Webb alleges circumvention pursuant to section
781(d) of the Act (i.e., merchandise developed after an investigation
is initiated).
Section 781(d)(1) of the Act provides that Commerce may find
circumvention of an AD or CVD order when merchandise is developed after
an investigation is initiated. In conducting a later-developed
merchandise inquiry under section 781(d)(1) of the Act and 19 CFR
351.226(k), Commerce will consider whether: (A) the later-developed
merchandise has the same general physical characteristics as the
merchandise with respect to which the order was originally issued
(earlier product); (B) the expectations of the ultimate purchasers of
the later-developed merchandise are the same as for the earlier
product; (C) the ultimate use of the earlier product and the later-
developed merchandise are the same; (D) the later-developed merchandise
is sold through the same channels of trade as the earlier product; and
(E) the later-developed merchandise is advertised and displayed in a
manner similar to the earlier product.
In addition, section 781(d)(2) of the Act establishes that Commerce
may not exclude a later-developed merchandise from a countervailing or
antidumping duty order merely because the merchandise is classified
under a tariff classification other than that identified in the
petition or Commerce's prior notices during the proceeding, or permits
the purchaser to perform additional functions, unless such additional
functions constitute the primary use of the merchandise and the cost of
the additional functions constitute more than a significant proportion
of the total cost of production of the merchandise.
In accordance with 19 CFR 351.226(m)(2), for companion AD and CVD
proceedings, ``the Secretary will initiate and conduct a single inquiry
with respect to the product at issue for both orders only on the record
of the antidumping proceeding.'' Further, once ``the Secretary issues a
final circumvention determination on the record of the AD proceeding,
the Secretary will include a copy of that determination on the record
of the CVD.'' Accordingly, once Commerce concludes this circumvention
inquiry, Commerce intends to place its final circumvention
determination on the record of the companion CVD proceeding.
Analysis
Based on our analysis of Webb's circumvention inquiry request and
supplemental questionnaire response, we determine that they have
satisfied the criteria under 19 CFR 351.226(c), and thus, pursuant to
19 CFR 351.226(d)(1)(iii), we are initiating the requested
circumvention inquiry. For a full discussion of the basis for our
decision to initiate the circumvention inquiry regarding the later-
developed merchandise allegation, see the Circumvention Initiation
Checklist. The Circumvention Initiation Checklist is available on
ACCESS. ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>.
As explained in the Circumvention Initiation Checklist, the
information provided by Webb warrants initiating the circumvention
inquiry on a country-wide basis. Commerce has taken this approach in
prior circumvention inquiries, where the facts warranted initiation on
a country-wide basis.\12\
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\12\ See, e.g., Hydrofluorocarbon Blends from the People's
Republic of China: Initiation of Circumvention Inquiry on the
Antidumping Duty Order, 88 FR 74150 (October 30, 2023).
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Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify CBP of this
initiation and direct CBP to continue the suspension of liquidation of
entries of products subject to the circumvention inquiry that were
already subject to the suspension of liquidation under the Orders and
to apply the cash deposit rates that would be applicable if the
products were determined to be covered by the scope of the Orders.
Should Commerce issue an affirmative preliminary or final
circumvention determination, Commerce will follow the suspension of
liquidation rules under 19 CFR 351.226(l)(2)-(4). In the event that
Commerce issues an affirmative preliminary or final circumvention
determination that the inquiry merchandise is circumventing the Orders,
Commerce will instruct CBP to continue the suspension of liquidation of
previously suspended entries and to apply the applicable cash deposit
rate. Commerce will also instruct CBP to begin the suspension of
liquidation and application of cash deposits for any unliquidated
entries of inquiry merchandise not yet suspended, entered, or withdrawn
from warehouse, for consumption, on or after the date of publication of
the notice of initiation of the circumvention inquiry pursuant to
paragraphs (l)(2)(ii) and (l)(3)(ii). In addition, pursuant to
paragraphs (l)(2)(iii)(A) and (l)(3)(iii)(A), Commerce may instruct CBP
to begin the suspension of liquidation and application of cash deposits
for any unliquidated entries not yet suspended, entered, or withdrawn
from warehouse, for consumption, prior to the date of initiation of the
circumvention inquiry, but not for such entries prior to November 4,
2021, the effective date of these provisions in the Final Rule.\13\
These rules will not affect CBP's authority to take any additional
action with respect to the suspension of liquidation or related
measures for these entries, as stated in 19 CFR 351.226(l)(5).
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\13\ See Regulations to Improve Administration and Enforcement
of Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345
(September 20, 2021) (Final Rule).
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Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(d) of the Act,
Commerce determines that Webb's request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce
is notifying all interested parties of the initiation of the
circumvention inquiry to determine whether CGI brake drums, including
PanAsia's model number M328D557, produced in and exported from China,
are circumventing the Orders. In addition, we have included a
description of the products that are subject to this inquiry and an
explanation of Commerce's decision to initiate the inquiry as provided
in the accompanying Circumvention Initiation Checklist.\14\
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\14\ See Initiation Checklist.
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In accordance with 19 CFR 351.226(e)(1), unless the circumvention
inquiry is rescinded, in whole or in part, or the deadline for the
preliminary circumvention determination is extended, Commerce intends
to issue its preliminary circumvention determination no later than 150
days from the date of publication of the notice of initiation of this
circumvention inquiry in the Federal Register. Furthermore, in
accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2),
unless the circumvention inquiry is rescinded, in whole or in part, or
the deadline for the final circumvention deadline is extended, Commerce
intends to issue its final determination within 300 days from the date
of publication of the
[[Page 3437]]
notice of initiation of the circumvention inquiry in the Federal
Register.
This notice is published in accordance with section 781(d) of the
Act, and 19 CFR 351.226(d)(1)(iii).
Dated: January 22, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix
Scope of the Orders
The merchandise covered by these Orders 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 these Orders 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 these Orders is classifiable under
Harmonized Tariff Schedule of the United States (HTSUS) subheading
8708.30.5020. The merchandise covered by these Orders 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 these Orders is
dispositive.
[FR Doc. 2026-01598 Filed 1-26-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on January 27, 2026.
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