Notice2026-11350
Van-Type Trailers and Subassemblies Thereof From People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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Published
June 5, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
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 the People's Republic of China (China). The period of investigation is January 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 91 Issue 108 (Friday, June 5, 2026)</title>
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[Federal Register Volume 91, Number 108 (Friday, June 5, 2026)]
[Notices]
[Pages 34222-34225]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11350]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-218]
Van-Type Trailers and Subassemblies Thereof From People's
Republic of China: 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 the People's Republic of China (China). The
period of investigation 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: Christopher Doyle, AD/CVD Operations,
Office IX, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-5882.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on January 26,
2026.\1\ On March 10, 2026, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
June 1, 2026.\2\ 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>.
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\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).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Van-Type Trailers and Subassemblies Thereof from the People's
Republic of China,'' dated concurrently with, and hereby adopted by,
this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is van-type trailers from
China. 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 countervailing duty (CVD) investigations on or before
the preliminary determinations of the companion Canada and Mexico LTFV
investigations.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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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\
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\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.
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Commerce notes that, in making these findings, it relied, in part,
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.
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\7\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion LTFV investigation of van-type
trailers from China based on a request made 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 August 24, 2026, unless postponed.
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\8\ See Petitioner's Letter, ``Request to Align Countervailing
Duty Investigation Final Determination with Antidumping Duty
Investigation Final Determination,'' dated May 15, 2026.
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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. Pursuant to section 705(c)(5)(A)(ii) of the Act, if the
individual estimated countervailable subsidy rates established for all
exporters and producers individually examined are zero, de minimis, or
determined based entirely on facts otherwise available, Commerce may
use any reasonable method to establish the estimated subsidy rate for
all other producers or exporters.
Commerce preliminarily determined an individual estimated
countervailable subsidy rate for CIMC Baowell
[[Page 34223]]
Industries Co., Ltd. and Qingdao CIMC Reefer Trailer Co., Ltd
(collectively, CIMC), the only individually examined exporter/producer
in this investigation.\9\ Because the only individually calculated rate
is not zero, de minimis, or based entirely on facts otherwise
available, the estimated weighted-average rate calculated for CIMC is
the rate assigned to all other producers and exporters, pursuant to
section 705(c)(5)(A)(i) of the Act.
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\9\ See the ``Attribution of Subsidies,'' section of the
accompanying Preliminary Decision Memorandum for further discussion.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
CIMC Baowell Industries Co., Ltd. and Qingdao CIMC Reefer Trailer
Co., Ltd.: China International Marine Containers Group Co., Ltd.;
CIMC Vehicles Group Co., Ltd.; and CIMC Containers Group Co., Ltd.
\11\ The non-responsive exporters or producers are listed in
Appendix III. For further discussion, see the ``Use of Facts
Otherwise Available and Adverse Inferences'' section of the
Preliminary Decision Memorandum.
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Subsidy rate
Company (percent ad
valorem)
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CIMC Baowell Industries Co., Ltd. and Qingdao CIMC 82.37
Reefer Trailer Co., Ltd. \10\..........................
Non-Responsive Companies \11\........................... * 128.78
All Others.............................................. 82.37
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* 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.
Additionally, because the scope of this investigation includes
Chinese van-type trailers and subassemblies processed in third
countries,\12\ Chinese subassemblies and/or van-type trailers
containing Chinese subassemblies imported through third countries are
subject to the suspension of liquidation and cash deposit requirements
noted above. Because the petitioner has requested clarification that
Chinese subassemblies and/or van-type trailers containing Chinese
subassemblies imported from Canada are subject to China CVD duties,\13\
Commerce has established a Canadian third country case number in the
Automated Commercial Environment (ACE). For Chinese subassemblies and/
or van-type trailers containing Chinese subassemblies imported through
Canada, importers should report such entries under third country case
number C-122-218. For van-type trailers containing Chinese
subassemblies imported through Canada, only the Chinese subassembly
portion of the merchandise is subject to China CVD duties. Importers,
producers, or exporters of subject merchandise from other third
countries should file a request through ACCESS for Commerce to
establish a case number for that specific country in ACE. CBP may also
submit a request through the ACE AD/CVD Portal Inquiry System for
Commerce to establish specific third country case numbers.
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\12\ See Initiation Notice, 91 FR at 3128-29.
\13\ See American Trailer Manufacturers Coalition's Letter,
``Comments in Advance of the Preliminary Determination,'' dated May
22, 2026, at 2.
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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
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. A
timeline for the submission of case briefs and written comments will be
provided to interested parties at a later date. 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.\14\ Interested
parties who submit case briefs or rebuttal briefs in this proceeding
must submit: (1) a table of contents listing each issue; and (2) a
table of authorities.\15\
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\14\ 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).
\15\ See 19 CFR 351.309(c)(2) and (d)(2)
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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.\16\ 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 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 executive summary of each issue. Note that
Commerce has amended certain of its requirements pertaining to
[[Page 34224]]
the service of documents in 19 CFR 351.303(f).\17\
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\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ See APO and Service Final Rule.
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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, 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-type trailers from China are
materially injuring, or threaten material injury to, 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 the
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. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Use Of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
Appendix III
Non-Responsive Companies
1. Chusheng Vehicle Group Co., Ltd.
2. CRRC Urban Traffic Co., Ltd.
3. CSCTRUCK Limited
4. Henan Huayu Jujiu Vehicle Co., Ltd.
5. Henan Reddin Trading Co., Ltd.
6. Henan Ulike Industry Co., Ltd.
7. Hubei ChuSheng Commercial Truck
8. Hubei Chusheng Vehicles Co., Ltd. Sales Office
9. Hubei Chusheng Vehicle Co., Ltd.
10. Jinan Shacman Truck Co., Ltd.
11. Qihang Automobile Co., Ltd.
12. Qingdao Genron International Trade Co., Ltd.
13. Qingdao Quest Vehicles Equipment Co., Ltd.
14. Shannxi Automobile Holding Group
15. Shandong Fuyan Special Purpose Vehicles Manufacturing Co., Ltd.
16. Shandong Luen Auto Co., Ltd.
17. Shandong Shodailer Automobile Manufacturing Co., Ltd.
18. Shandong Tengyun Special Vehicles Manufacturing Co., Ltd.
[[Page 34225]]
19. Xiagong Chusheng (Hubei) Special Purpose Vehicle Manufacturing
Co., Ltd.
[FR Doc. 2026-11350 Filed 6-4-26; 8:45 am]
BILLING CODE 3510-DS-P
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