Certain Van-Type Trailers and Subassemblies Thereof From Mexico: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty 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.
Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of van-type trailers and subassemblies thereof (van-type trailers) from Mexico. The period of investigation (POI) is January 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 108 (Friday, June 5, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 108 (Friday, June 5, 2026)]
[Notices]
[Pages 34218-34220]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11348]
[[Page 34218]]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-868]
Certain Van-Type Trailers and Subassemblies Thereof From Mexico:
Preliminary Affirmative Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of van-type trailers and subassemblies thereof
(van-type trailers) from Mexico. The period of investigation (POI) is
January 1, 2024, through December 31, 2024. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable June 5, 2026.
FOR FURTHER INFORMATION CONTACT: Suresh Maniam and Mary Kolberg, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0176 and (202) 482-1785,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On January 26,
2026, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation in the Federal Register.\1\ On
March 19, 2026, Commerce postponed the preliminary determination until
June 1, 2026.\2\
---------------------------------------------------------------------------
\1\ See Van-Type Trailers and Subassemblies Thereof from Canada,
the People's Republic of China, and Mexico: Initiation of
Countervailing Duty Investigations, 91 FR 3124 (January 26, 2026)
(Initiation Notice).
\2\ See Certain Van-Type Trailers and Subassemblies Thereof from
Canada, the People's Republic of China, and Mexico: Postponement of
Preliminary Determinations in the Countervailing Duty
Investigations, 91 FR 11509 (March 10, 2026).
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
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 Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/frnotices">https://access.trade.gov/frnotices</a>.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of Certain Van-Type Trailers and Subassemblies Thereof from
Mexico,'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is van-type trailers from
Mexico. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the less-than-fair-
value (LTFV) and CVD investigations on or before the preliminary
determinations of the companion Canada and Mexico LTFV investigations.
---------------------------------------------------------------------------
\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice.
---------------------------------------------------------------------------
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\6\
---------------------------------------------------------------------------
\6\ 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.
---------------------------------------------------------------------------
Commerce notes that, in making these findings, it relied on facts
available and, because it finds that one or more respondents did not
act to the best of their ability to respond to Commerce's requests for
information, it drew an adverse inference where appropriate in
selecting from among the facts otherwise available.\7\ For further
information, see the ``Use of Facts Otherwise Available and Adverse
Inferences'' section in the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final determination in this
investigation with the final determination in the companion LTFV
investigation of van-type trailers from Mexico, based on a request by
the petitioner.\8\ Consequently, the final CVD determination will be
issued on the same date as the final LTFV determination, which is
currently scheduled to be issued no later than October 13, 2026, unless
postponed.
---------------------------------------------------------------------------
\8\ The petitioner is the American Trailer Manufacturers
Coalition and its individual members Great Dane LLC, Stoughton
Trailers LLC and Wabash National Corporation. See Petitioner's
Letter, ``Request to Align Countervailing Duty Investigation Final
Determination with Antidumping Duty Investigation Final
Determination,'' dated May 15, 2026.
---------------------------------------------------------------------------
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for the mandatory respondents that are
not zero, de minimis, or based entirely on facts otherwise available.
Commerce calculated the all-others rate using a weighted average of the
individual estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged values for the
merchandise under consideration.\9\
---------------------------------------------------------------------------
\9\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see the memorandum, ``Calculation of Subsidy Rate for All Others
Memorandum,'' dated concurrently with this notice.
---------------------------------------------------------------------------
[[Page 34219]]
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
---------------------------------------------------------------------------
\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross-owned with
Utility Trailer Manufacturing de M[eacute]xico, S. de R.L. de C.V.:
Liner Systems Mexico, S. de R.L. de C.V.
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Hyundai de Mexico S.A. de C.V........................... 1.90
Utility Trailer Manufacturing de M[eacute]xico, S. de 1.95
R.L. de C.V. \10\......................................
All Others.............................................. 1.91
Commercializadora Nimmka, S.A. de. C.V. (d/b/a Atro * 62.67
Remolques y Carrociera)................................
BRD Trailers S.A. de C.V. (d/b/a DeLucio)............... * 62.67
Gallegos Trailers....................................... * 62.67
Industrias Kuzzy De Mexico S.A. de C.V.................. * 62.67
Manufacturas Industriales Gami S.A. de C.V.............. * 62.67
------------------------------------------------------------------------
* This rate is based on facts available with adverse inferences.
Suspension of Liquidation
In accordance with section 703(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise as described in the scope of the
investigation section entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register. Further, pursuant to section 703(d)(1)(B) of the Act
and 19 CFR 351.107(e), Commerce will instruct CBP to require a cash
deposit equal to the estimated company-specific countervailable subsidy
rate or the estimated all-others rate, as follows: (1) the cash deposit
rate for the respondents listed above will be equal to the company-
specific estimated individual countervailable subsidy rates determined
in this preliminary determination; (2) if both the producer and
exporter of the subject merchandise have company-specific estimated
subsidy rates determined in this preliminary determination, and their
rates differ, then the applicable cash deposit rate will be the higher
of these two rates; (3) if either the producer or the exporter, but not
both, of the subject merchandise have a company-specific estimated
subsidy rate determined in this preliminary determination, the
applicable cash deposit rate will be that company's company-specific
rate; and (4) the cash deposit rate for all other producers and
exporters will be equal to the estimated all-others subsidy rate.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the LTFV and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing LTFV and CVD van-type trailer investigations. No new factual
information or business proprietary information may be included in
either scope case or rebuttal briefs.
Non-scope related case briefs or other written comments may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this investigation. Rebuttal briefs, limited to
issues raised in the case briefs, may be filed not later than five days
after the date for filing case briefs.\11\ Interested parties who
submit case or rebuttal briefs in this proceeding must submit: (1) a
table of contents listing each issue; and (2) a table of
authorities.\12\
---------------------------------------------------------------------------
\11\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\12\ See 19 CFR 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------
As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we
request that interested parties provide at the beginning of their
briefs a public, executive summary for each issue raised in their
briefs.\13\ Further, we request that interested parties limit their
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public executive summaries as
the basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the public executive summary of each issue. Note
that Commerce has amended certain of its requirements pertaining to the
service of documents in 19 CFR 351.303(f).\14\
---------------------------------------------------------------------------
\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ See APO and Service Final Rule.
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain:
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of the issues to be discussed. If a request for a hearing is
made, Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the ITC of its determination. If the final determination is
affirmative, the ITC will determine, before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination, whether imports of van-
[[Page 34220]]
type trailers from Mexico are materially injuring the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: June 1, 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 I
Scope of the Investigation
The merchandise covered by this investigation consists of
certain van-type trailers and subassemblies thereof, whether
finished or unfinished, whether assembled or unassembled, regardless
of the number of axles, for carriage of goods. Van-type trailers are
typically, but not limited to, rectangular cuboid trailers with a
fully enclosed cargo space consisting of a front nose (with or
without a refrigeration unit), side walls (with or without doors),
movable rear panels (whether roll-up doors, swing doors, or another
configuration), a floor and subframe, an affixed or removable roof,
a suspension and axle system, wheels and tires, brakes, a lighting
and electrical system, landing gear, and coupling for towing behind
a truck tractor or a connection system for training behind another
van-type trailer. Covered van-type trailers are those with a gross
vehicle weight rating of greater than 26,000 pounds.
Subject merchandise includes, but is not limited to, the
following subassemblies:
<bullet> Van-type trailer subframes, or sections of van-type
trailer frames, typically consisting of welded crossmembers and
slider rails for attaching the running gear;
<bullet> Nose wall, side wall, and roof subassemblies, whether
insulated or non insulated, and with or without top, bottom, or side
rails;
<bullet> Rear door frame, whether for swing or roll-up doors,
with or without installed doors, bumpers, bumper plates, or
reinforcing plates for liftgate;
<bullet> Door assemblies, whether for rear swing doors, roll-up
doors, side doors or any other configuration, with or without
lockrods, handles, hinges, or hinge pins;
<bullet> Rear impact guard subassemblies, typically consisting
of a fabricated horizontal structural component (such as a guard
tube) and uprights for connection to the underside of the rear
frame;
<bullet> Coupler assembly for connection to truck tractor's
fifth wheel, typically consisting of main beams and cross members,
support plates, and front nose wrap, and with or without kingpin
installed;
<bullet> Running gear subassemblies or axle assemblies for
connection to the subframe, which may or may not include
suspension(s), wheel end components, slack adjusters, dressed axles,
brake chambers, locking pins, wheels, and tires; and
<bullet> Landing gear subassemblies, typically consisting of two
landing legs, a cross channel, braces, bracketing, a cross shaft,
and a crank handle.
These subassemblies are subject to the investigation, whether
entered alone or with other subassemblies and whether assembled or
unassembled and whether finished or unfinished. The absence of any
subassembly from an otherwise finished or unfinished van-type
trailer does not remove the van-type trailer from coverage.
Subject merchandise also includes components entered with (i.e.,
on the same bill of lading as) van-type trailers and subassemblies,
such as, but not limited to: hub and drum assemblies, brake
assemblies (either drum or disc), bare axles, brake chambers,
suspensions and suspension components, wheel end components, landing
gear legs, wheels, tires, brake control systems, electrical
harnesses and lighting systems, lift gate systems, tire inflation
systems, or refrigeration units (with or without evaporators or fuel
tanks) whether assembled or unassembled, whether as part of a kit or
not, and whether or not accompanied by additional components that
constitute as part of an unfinished and/or unassembled van-type
trailer and subassemblies thereof that are subject to the
investigation.
Processing of finished and unfinished van-type trailers and
subassemblies, such as trimming, cutting, grinding, notching,
punching, drilling, painting, coating, staining, finishing,
assembly, or any other processing either in the country of
manufacture of the in-scope product or in a third country does not
remove the product from the scope. Inclusion of other components not
identified as comprising the finished or unfinished van-type trailer
does not remove the product from the scope.
Specifically excluded are subassemblies 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 finished and unfinished van-type trailers subject to this
investigation are typically classified in the Harmonized Tariff
Schedule of the United States (HTSUS) at subheadings: 8716.39.0040
and 8716.90.5060. Imports of finished and unfinished subassemblies
may also enter under HTSUS subheadings 7308.30.5050, 7308.90.9590,
7326.90.8688, 8708.29.1500, 8708.99.8180, 8716.90.5010. While the
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the merchandise under investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of Mexico's and China's Economies
V. Use of Facts Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Interest Rate, Discount Rate, and Input Benchmarks
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2026-11348 Filed 6-4-26; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>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.