Certain Steel Wheels From the People's Republic of China: Initiation of Circumvention Inquiries on the Antidumping and Countervailing Duty Orders
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Issuing agencies
Abstract
In response to a request from Accuride Corporation (Accuride) and Maxion Wheels USA LLC (Maxion) (domestic interested parties), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of certain steel wheels from Thailand are circumventing the antidumping duty (AD) and countervailing duties (CVD) orders on certain steel wheels from the People's Republic of China (China).
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<title>Federal Register, Volume 91 Issue 53 (Thursday, March 19, 2026)</title>
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[Federal Register Volume 91, Number 53 (Thursday, March 19, 2026)]
[Notices]
[Pages 13291-13293]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05445]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-082, C-570-083]
Certain Steel Wheels From the People's Republic of China:
Initiation of Circumvention Inquiries on the Antidumping and
Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Accuride Corporation (Accuride)
and Maxion Wheels USA LLC (Maxion) (domestic interested parties), the
U.S. Department of Commerce (Commerce) is initiating a country-wide
circumvention inquiry to determine whether imports of certain steel
wheels from Thailand are circumventing the antidumping duty (AD) and
countervailing duties (CVD) orders on certain steel wheels from the
People's Republic of China (China).
DATES: Applicable March 19, 2026.
FOR FURTHER INFORMATION CONTACT: Thomas Cloyd, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230; telephone: (202) 482-1246.
SUPPLEMENTARY INFORMATION:
Background
On January 14, 2026, pursuant to section 781(b) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.226(i), Accuride and
Maxion (domestic interested parties) filed a circumvention inquiry
request alleging that certain steel wheels finished in Thailand using
hot-rolled steel (HRS) produced in China, and subsequently exported
from Thailand to the United States are circumventing the AD and CVD
orders on certain steel wheels from China \1\ and, accordingly, should
be included within the scope of the Orders.\2\ On January 26, 2026, an
interested party, Asia Wheel Co., Ltd. (Asia Wheel), filed adequacy
comments alleging the legal requirements to initiate a circumvention
inquiry had not been met.\3\ On February 2, 2026, domestic interested
parties filed rebuttal comments in response to Asia Wheel's adequacy
comments.\4\ On February 9, 2026, we issued a supplementary
questionnaire to domestic interested parties to clarify the period of
inquiry and period of comparison.\5\ The domestic interested parties
responded on February 12, 2026.\6\
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\1\ See Certain Steel Wheels from the People's Republic of
China: Antidumping and Countervailing Duty Orders, 84 FR 24098 (May
24, 2019) (Orders).
\2\ See Domestic Interested Parties' Letter, ``Request for
Circumvention Ruling (Thailand),'' dated January 14, 2026
(Circumvention Inquiry Request).
\3\ See Asia Wheel's Letter, ``Adequacy Comments,'' dated
January 26, 2026.
\4\ See Domestic Interested Parties' Letter, ``Response to
Comments on the Adequacy of the Request for a Circumvention
Inquiry,'' dated February 2, 2026.
\5\ See Commerce's Letter, ``Supplemental Questionnaire,'' dated
February 9, 2026.
\6\ See Domestic Interested Parties' Letter, ``Response to
Supplemental Questionnaire,'' dated February 12, 2026. In accordance
with 19 CFR 351.226(d)(1)(ii), the domestic interested parties'
timely response extended the deadline for initiation of this
circumvention inquiry by 30 days to March 16, 2026.
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Scope of the Orders
The merchandise subject to the Orders is certain on-the-road steel
wheels, discs, and rims for tubeless tires, with a nominal rim diameter
of 22.5 inches and 24.5 inches, regardless of width. Imports of the
subject merchandise are currently classified under the following
Harmonized Tariff Schedule of the United States (HTSUS) subheadings:
8708.70.4530, 8708.70.4560, 8708.70.6030, 8708.70.6060, and
8716.90.5059. Merchandise meeting the scope description may also enter
under the following HTSUS subheadings: 4011.20.1015, 4011.20.5020, and
8708.99.4850. While HTSUS subheadings are provided for convenience and
customs purposes, the written description of the scope of the Orders is
dispositive. For a full description of the scope of the Orders, see the
Initiation Checklist.\7\
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\7\ See Checklist, ``Thailand Assembly Circumvention Initiation
Checklist,'' dated concurrently with, and hereby adopted by, this
notice (Initiation Checklist).
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers certain steel wheels finished in
Thailand using HRS produced in China and subsequently exported from
Thailand to the United States.
Initiation of Circumvention Inquiry
Section 351.226(d) 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 initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry 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.'' Domestic
interested parties alleged circumvention pursuant to section 781(b) of
the Act (merchandise completed or assembled in other foreign
countries).
Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in a foreign country
other than the country to which the order applies. In conducting a
circumvention inquiry, under section 781(b)(1) of the Act, Commerce
relies on
[[Page 13292]]
the following criteria: (A) merchandise imported into the United States
is of the same class or kind as any merchandise produced in a foreign
country that is the subject of an AD or CVD order; (B) before
importation into the United States, such imported merchandise is
completed or assembled in another foreign country from merchandise
which is subject to the order or is produced in the foreign country
that is subject to the order; (C) the process of assembly or completion
in the foreign country referred to in section (B) is minor or
insignificant; (D) the value of the merchandise produced in the foreign
country to which the AD or CVD order applies is a significant portion
of the total value of the merchandise exported to the United States;
and (E) the administering authority determines that action is
appropriate to prevent evasion of such order.
In determining whether the process of assembly or completion in a
foreign country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
determination of whether the process of assembly or completion in a
foreign country is minor or insignificant.\8\ Accordingly, it is
Commerce's practice to evaluate each of these five factors as they
exist in the foreign country, depending on the totality of the
circumstances of the particular circumvention inquiry.\9\
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\8\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at
893.
\9\ See Uncovered Innerspring Units from the People's Republic
of China: Final Affirmative Determination of Circumvention of the
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and
accompanying Issues and Decision Memorandum at 4.
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In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
assembled or completed in a foreign country within the scope of an AD
or CVD order. Specifically, Commerce shall take into account such
factors as: (A) the pattern of trade, including sourcing patterns; (B)
whether the manufacturer or exporter of the merchandise that was
shipped to the foreign country is affiliated with the person who, in
the foreign country, uses the merchandise to complete or assemble the
merchandise which is subsequently imported into the United States; and
(C) whether imports of the merchandise into the foreign country have
increased after the initiation of the investigation that resulted in
the issuance of such order.
Analysis
Based on our analysis of the domestic interested parties'
circumvention inquiry request and supplemental questionnaire response,
we determine that requesters have satisfied the criteria under 19 CFR
351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we have
accepted the request and are initiating the requested circumvention
inquiry of the Orders. For a full discussion of the basis for our
decision to initiate the requested circumvention inquiry, see the
Initiation Checklist. The 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 Initiation Checklist, the information provided
by requesters' warrants initiating this 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.\10\ As such, Commerce intends to issue
questionnaires to solicit information from producers and exporters in
Thailand concerning their shipments to the United States and the origin
of steel plates being further processed into steel wheels (i.e., the
merchandise subject to the Orders).
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\10\ 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); see also
Hydrofluorocarbon Blends from the People's Republic of China:
Initiation of Circumvention Inquiries on the Antidumping Duty Order,
88 FR 43275 (July 7, 2023); Certain Corrosion-Resistant Steel
Products from the Republic of Korea and Taiwan: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 83 FR 37785 (August 2, 2018); Carbon Steel Butt-Weld
Pipe Fittings from the People's Republic of China: Initiation of
Anti-Circumvention Inquiry on the Antidumping Duty Order, 82 FR
40556, 40560 (August 25, 2017) (stating at initiation that Commerce
would evaluate the extent to which a country-wide finding applicable
to all exports might be warranted); and Certain Corrosion-Resistant
Steel Products from the People's Republic of China: Initiation of
Anti-Circumvention Inquiries on the Antidumping Duty and
Countervailing Duty Orders, 81 FR 79454, 79458 (November 14, 2016)
(stating at initiation that Commerce would evaluate the extent to
which a country-wide finding applicable to all exports might be
warranted).
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Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) data. Commerce intends to place the CBP data on
the record within five days of the publication of this initiation
notice, which will be available on 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>. Comments regarding the CBP data and respondent
selection should be submitted within seven days after placement of the
CBP data on the record of the inquiry.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to Commerce's requests for information may result in the
application of partial or total facts available, pursuant to section
776(a) of the Act, which may include adverse inferences, pursuant to
section 776(b) of the Act.
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 this 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 affirmative preliminary or final circumvention
determinations, 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 that the products are
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 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 inquiries 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,
[[Page 13293]]
for consumption, prior to the date of initiation of the circumvention
inquiries, but not for such entries prior to November 4, 2021, the
effective date of these provisions in the Final Rule.\11\ 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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\11\ 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(b) of the Act,
Commerce determines that the domestic interested parties' 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 this circumvention inquiry to determine whether certain
steel wheels finished in Thailand using HRS produced in China, which
are subsequently exported from Thailand to the United States, are
circumventing the Orders. In addition, we have included a description
of the products that are the subject to this inquiry and an explanation
of Commerce's decision to initiate this inquiry as provided in the
accompanying Initiation Checklist.\12\ In accordance with 19 CFR
351.226(e)(1), 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 extended, Commerce intends to issue its final
determination within 300 days from the date of publication of the
notice of initiation of the circumvention inquiry in the Federal
Register.
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\12\ See Initiation Checklist at 4, 6.
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This notice is published in accordance with section 781(b) of the
Act, and 19 CFR 351.226(d)(1)(iii).
Dated: March 16, 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.
[FR Doc. 2026-05445 Filed 3-18-26; 8:45 am]
BILLING CODE 3510-DS-P
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