Notice2026-17749
Van-Type Trailers and Subassemblies Thereof From the People's Republic of China: Final Affirmative Countervailing 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.
Published
August 31, 2026
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 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.
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 167 (Monday, August 31, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 167 (Monday, August 31, 2026)]
[Notices]
[Pages 55840-55843]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17749]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-218]
Van-Type Trailers and Subassemblies Thereof From the People's
Republic of China: Final Affirmative Countervailing Duty 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 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.
DATES: Applicable August 31, 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
On June 5, 2026, Commerce published the Preliminary Determination
of this countervailing duty (CVD) investigation of van-type trailers
from China, in accordance with section 705(a)(1) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.210(b)(3), and aligned this
CVD investigation with the final determination in the companion less-
than-fair-value investigation.\1\ On this same date, CIMC Baowell
Industries Co., Ltd. and Qingdao CIMC Reefer Trailer Co., Ltd.
(collectively, CIMC) notified Commerce that it was withdrawing its
[[Page 55841]]
participation from this investigation.\2\ On July 17, 2026, we issued a
post-preliminary analysis memorandum regarding certain programs.\3\
---------------------------------------------------------------------------
\1\ See Van-Type Trailers and Subassemblies Thereof from the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination and Alignment of Final Determination with Final
Antidumping Duty Determination, 91 FR 34222 (June 3, 2026)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See CIMC's Letter, ``Notice of Withdrawal from Further
Participation as Mandatory Respondents,'' dated June 5, 2026 (CIMC's
Withdrawal Notice).
\3\ See Memorandum, ``Post-Preliminary Analysis Memorandum for
the Countervailing Duty Investigation of Van-Type Trailers and
Subassemblies Thereof from the People's Republic of China,'' dated
July 17, 2026.
---------------------------------------------------------------------------
For a complete discussion 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),
which is available to registered users at <a href="http://access.trade.gov">http://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/frnotices">https://access.trade.gov/frnotices</a>.
---------------------------------------------------------------------------
\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in 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 (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The merchandise covered by the scope of this investigation is van-
type trailers from China. For a complete description of the scope of
this investigation, see Appendix I.
Scope Comments
In the Preliminary Scope Memorandum, we set aside a period of time
for parties to raise issues regarding product coverage (i.e., scope) in
scope-specific case briefs or other written comments.\5\ We received
comments from interested parties on the scope of the investigation as
it appeared in the Preliminary Determination. For a summary of the
product coverage comments submitted to the record for this final
determination, and accompanying discussion and analysis of all comments
timely received, see the Final Scope Decision Memorandum.\6\ After
analyzing these comments, we made no changes to the scope of the
investigation. See the scope in Appendix I to this notice.
---------------------------------------------------------------------------
\5\ See Memorandum, ``Van-Type Trailers and Subassemblies
Thereof from Canada, Mexico, and the People's Republic of China:
Preliminary Scope Decision Memorandum,'' dated July 29, 2026
(Preliminary Scope Memorandum).
\6\ See Memorandum, ``Van-Type Trailers and Subassemblies
Thereof from Canada, Mexico, and the People's Republic of China:
Final Scope Decision Memorandum,'' dated concurrently with this
final determination (Final Scope Decision Memorandum).
---------------------------------------------------------------------------
Verification
CIMC withdrew from participation as a mandatory respondent in this
investigation prior to verification.\7\ Accordingly, Commerce did not
conduct verification under section 782(i)(1) of the Act.
---------------------------------------------------------------------------
\7\ See CIMC's Withdrawal Notice.
---------------------------------------------------------------------------
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised by
an interested parties 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.\8\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
---------------------------------------------------------------------------
In making this final determination, Commerce relied 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 Issues and
Decision Memorandum at Comments 1 and 2.
All-Others Rate
Section 705(c)(5)(A) of the Act provides that 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. In this investigation, Commerce has determined
the estimated subsidy rate for the sole individually examined
respondent (i.e., CIMC) under section 776 of the Act. Thus, this is the
only rate available in this proceeding for deriving the all-others
rate. Consequently, Commerce established the all-others rate based on
the countervailing subsidy rate assigned to the mandatory respondent.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2024, through December
31, 2024:
---------------------------------------------------------------------------
\9\ These companies are listed in Appendix III.
------------------------------------------------------------------------
Subsidy
rate
Company (percent ad
valorem)
------------------------------------------------------------------------
CIMC Baowell Industries Co., Ltd. and Qingdao CIMC Reefer * 134.75
Trailer Co., Ltd..........................................
Non-Responsive Companies \9\............................... * 134.75
All Others................................................. 134.75
------------------------------------------------------------------------
* This rate is based on total AFA.
Disclosure
Because Commerce applied AFA to the sole mandatory respondent, in
accordance with section 776 of the Act, there are no calculations to
disclose for this final determination pursuant to 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of subject merchandise from China that were
entered, or withdrawn from warehouse, for consumption, on or after June
5, 2026, the date of the publication of the Preliminary Determination
in the Federal Register.\10\
---------------------------------------------------------------------------
\10\ See Preliminary Determination, 91 FR at 34222.
---------------------------------------------------------------------------
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order and require
a cash deposit of estimated countervailing duties for entries of
subject merchandise in the amounts indicated above. Pursuant to section
705(c)(2) 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
[[Page 55842]]
deposited or securities posted as a result of the suspension of
liquidation will be refunded or cancelled.
Additionally, in the Preliminary Determination, Commerce
established a Canadian third country case number in the Automated
Commercial Environment (ACE).\11\ 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, as well as components entering on the same bill of lading
as the Chinese subassembly, are subject to China countervailing duties.
---------------------------------------------------------------------------
\11\ See Preliminary Determination, 91 FR at 34223.
---------------------------------------------------------------------------
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of van-type
trailers 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
import of van-type trailers from China. In addition, we are making
available to the ITC all non-privileged and non-proprietary 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.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Administrative Protective Order
This notice will serve as the final reminder to parties subject to
an APO of their responsibility concerning the 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 terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: August 24, 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,
8716.39.0090, 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.
[[Page 55843]]
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Available and Application of Adverse Inference
IV. Discussion of the Issues
Comment 1: Application of Adverse Facts Available (AFA) to CIMC
and the Government of China (GOC)
Comment 2 Calculation of the AFA Rate
Comment 3: Cash Deposits on Imports of Subject Merchandise from
China
V. 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.
19. Xiagong Chusheng (Hubei) Special Purpose Vehicle
Manufacturing Co., Ltd.
[FR Doc. 2026-17749 Filed 8-28-26; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on August 31, 2026.
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.