[Federal Register Volume 90, Number 63 (Thursday, April 3, 2025)]
[Notices]
[Pages 14639-14641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05746]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-135, C-570-136]
Certain Chassis and Subassemblies Thereof From the People's
Republic of China: Notice of Covered Merchandise Referral and
Initiation of Covered Merchandise Inquiry
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) has received a
covered merchandise referral from U.S. Customs and Border Protection
(CBP) in connection with a CBP investigation concerning alleged evasion
of the antidumping/countervailing duty (AD/CVD) orders on certain
chassis and subassemblies thereof (chassis) from the People's Republic
of China (China). Commerce is initiating a covered merchandise inquiry
to determine whether the merchandise described in the referral is
subject to the AD/CVD orders on chassis from China. Interested parties
are invited to comment and submit factual information addressing this
initiation.
DATES: Applicable April 3, 2025.
FOR FURTHER INFORMATION CONTACT: Jacob Keller at (202) 482-4849, AD/CVD
Operations Office I, Enforcement & Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
Section 517(b)(4)(A)(i) of the Tariff Act of 1930, as amended (the
Act), provides a procedure whereby if, during the course of an Enforce
and Protect Act (EAPA) investigation, CBP is unable to determine
whether the merchandise at issue is covered merchandise within the
meaning of section 517(a)(3) of the Act, it shall refer the matter to
Commerce to make such a determination. Section 517(a)(3) of the Act
defines covered merchandise as merchandise that is subject to an
antidumping duty order issued under section 736 of the Act or a
countervailing duty order issued under section 706 of the Act. Section
517(b)(4)(B) of the Act states that Commerce, after receiving a covered
merchandise referral from CBP, shall determine whether the merchandise
is covered merchandise and promptly transmit its determination to CBP.
Commerce's regulations at 19 CFR 351.227 establish procedures for
covered merchandise referrals that Commerce receives from CBP in
connection with an EAPA investigation.\1\
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\1\ See Regulations to Improve Administration and Enforcement of
Antidumping and Countervailing Duty Laws, 86 FR 52300, 52354-62
(September 20, 2021) (final rule promulgating the regulation
establishing procedures for covered merchandise referrals).
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On March 11, 2025, Commerce received a sufficient covered
merchandise referral from CBP regarding CBP EAPA Investigation No. 7839
\2\ which concerns the Orders on chassis from China.\3\ Specifically,
CBP explained that an allegation was filed by SAF-HOLLAND, Inc.,
alleging U.S. importer AXN Heavy Duty LLC (AXN) evaded the Orders on
chassis from China.\4\ CBP informed Commerce that CBP is unable to
determine whether certain merchandise is covered merchandise subject to
the Orders on chassis from China.\5\ Thus, CBP has requested that
Commerce issue a determination as to whether merchandise imported by
AXN from China is covered merchandise subject to the Orders on chassis
from China.\6\
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\2\ See CBP's Letter, ``Covered Merchandise Referral Request for
EAPA Investigation 7839 Involving the Antidumping and Countervailing
Duty Orders on Certain Chassis and Subassemblies Thereof from the
People's Republic of China,'' dated March 11, 2025 (Covered
Merchandise Referral Request). The covered merchandise referral and
any supporting documents will be made available on Enforcement and
Compliance's Antidumping Duty and Countervailing Duty Centralized
Electronic Service System (ACCESS).
\3\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Antidumping Duty Order, 86 FR 36093
(July 8, 2021) (AD Order) 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) (CVD Order), respectively
(collectively, the Orders).
\4\ See Covered Merchandise Referral Request at 1.
\5\ Id. at 5.
\6\ Id. at 6.
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Initiation of Covered Merchandise Inquiry
In accordance with 19 CFR 351.227(b)(1), Commerce is hereby
notifying interested parties that it is initiating a covered
merchandise inquiry, to determine whether the merchandise subject to
the referral is covered merchandise within the meaning of section
517(a)(3) of the Act. Additionally, Commerce intends to provide
interested parties with the opportunity to participate in this segment
of the proceeding, including through the submission of comments and
factual information, and, if appropriate, verification. In accordance
with 19 CFR 351.227(m)(2), Commerce is initiating a single inquiry
regarding the merchandise described in the covered merchandise referral
on the record of the antidumping duty proceeding. Upon issuance of a
final covered merchandise determination, Commerce will include a copy
of the determination on the record of the countervailing duty
proceeding.
In accordance with 19 CFR 351.227(d)(1), within 30 days of the date
of publication of this notice, interested parties are permitted one
opportunity to submit comment and factual information addressing the
initiation. Within 14 days of the filing of such comments, any
interested party is permitted one opportunity to submit comment and
factual information to rebut, clarify, or correct factual information
submitted by the other interested parties.
In accordance with 19 CFR 351.227(d)(2), following initiation of a
covered merchandise inquiry, Commerce may also issue questionnaires and
verify submissions received, where appropriate. Commerce may limit
issuance of questionnaires to a reasonable number of respondents.
Questionnaire responses are due on the date specified by Commerce.
Within 14 days after a questionnaire response has
[[Page 14640]]
been filed with Commerce, an interested party other than the original
submitter is permitted one opportunity to submit comment and factual
information to rebut, clarify, or correct factual information contained
in the questionnaire response. Within seven days of the filing of such
rebuttal, clarification, or correction, the original submitter is
permitted one opportunity to submit comment and factual information to
rebut, clarify, or correct factual information submitted in the
interested party's rebuttal, clarification, or correction.
In certain circumstances, Commerce may issue a preliminary
determination as to whether there is a reasonable basis to believe or
suspect that the product that is subject to the covered merchandise
inquiry is covered by the scope of the order. Pursuant to 19 CFR
351.227(c), Commerce intends to issue a final determination within 120
days of the publication of this notice (this deadline may be extended
if Commerce determines that good cause exists to warrant an extension).
Promptly after publication of Commerce's final determination, Commerce
will convey a copy of the final determination in the manner prescribed
by section 516A(a)(2)(A)(ii) of the Act to all parties to the
proceeding and Commerce will transmit its final determination to CBP in
accordance with section 517(b)(4)(B) of the Act.\7\
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\7\ See also 19 CFR 351.227(e)(2).
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Pursuant to 19 CFR 351.227(d)(5), during the pendency of this
proceeding, Commerce may rescind, in whole or in part, a covered
merchandise inquiry. Situations in which Commerce may rescind a covered
merchandise inquiry include if CBP withdraws its covered merchandise
referral or if Commerce determines that it can address CBP's covered
merchandise referral in another segment of the proceeding. In
accordance with 19 CFR 351.227(c)(3), Commerce may align the deadlines
of this covered merchandise inquiry with the deadlines of another
segment of the proceeding if it determines it is appropriate to do so.
Parties are hereby notified that this may be the only notice that
Commerce publishes in the Federal Register concerning this covered
merchandise referral. Except as indicated below, interested parties
that wish to participate in this segment of the proceeding and receive
notice of the final determination, must submit their letters of
appearance as discussed below. Further, any representative of an
interested party desiring access to business proprietary information in
this segment of the proceeding must file an application for access to
business proprietary information under administrative protective order
(APO), as discussed below.
Scope of the Orders
The merchandise covered by the Orders consists of chassis and
subassemblies thereof, whether finished or unfinished, whether
assembled or unassembled, whether coated or uncoated, regardless of the
number of axles, for carriage of containers, or other payloads
(including self-supporting payloads) for road, marine roll-on/roll-off
(RORO) and/or rail transport. Chassis are typically, but are not
limited to, rectangular framed trailers with a suspension and axle
system, wheels and tires, brakes, a lighting and electrical system, a
coupling for towing behind a truck tractor, and a locking system or
systems to secure the shipping container or containers to the chassis
using twistlocks, slide pins or similar attachment devices to engage
the corner fittings on the container or other payload.
Subject merchandise includes, but is not limited to, the following
subassemblies:
Chassis frames, or sections of chassis frames, including
kingpin assemblies, bolsters consisting of transverse beams with
locking or support mechanisms, goosenecks, drop assemblies, extension
mechanisms and/or rear impact guards;
Running gear assemblies or axle assemblies for connection
to the chassis frame, whether fixed in nature or capable of sliding
fore and aft or lifting up and lowering down, which may or may not
include suspension(s) (mechanical or pneumatic), wheel end components,
slack adjusters, axles, brake chambers, locking pins, and tires and
wheels;
Landing gear assemblies, for connection to the chassis
frame, capable of supporting the chassis when it is not engaged to a
tractor; and
Assemblies that connect to the chassis frame or a section
of the chassis frame, such as, but not limited to, pintle hooks or B-
trains (which include a fifth wheel), which are capable of connecting a
chassis to a converter dolly or another chassis.
Importation of any of these subassemblies, whether assembled or
unassembled, constitutes an unfinished chassis for purposes of these
Orders.
Subject merchandise also includes chassis, whether finished or
unfinished, entered with or for further assembly with components such
as, but not limited to: hub and drum assemblies, brake assemblies
(either drum or disc), axles, brake chambers, suspensions and
suspension components, wheel end components, landing gear legs, spoke
or disc wheels, tires, brake control systems, electrical harnesses and
lighting systems.
Processing of finished and unfinished chassis and components 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
chassis does not remove the product from the scope.
Individual components entered and sold by themselves are not
subject to these Orders, but components entered with or for further
assembly with a finished or unfinished chassis are subject merchandise.
A finished chassis is ultimately comprised of several different types
of subassemblies. Within each subassembly there are numerous components
that comprise a given subassembly.
This scope excludes dry van trailers, refrigerated van trailers and
flatbed trailers. Dry van trailers are trailers with a wholly enclosed
cargo space comprised of fixed sides, nose, floor and roof, with
articulated panels (doors) across the rear and occasionally at selected
places on the sides, with the cargo space being permanently
incorporated in the trailer itself. Refrigerated van trailers are
trailers with a wholly enclosed cargo space comprised of fixed sides,
nose, floor and roof, with articulated panels (doors) across the rear
and occasionally at selected places on the sides, with the cargo space
being permanently incorporated in the trailer and being insulated,
possessing specific thermal properties intended for use with self-
contained refrigeration systems. Flatbed (or platform) trailers consist
of load-carrying main frames and a solid, flat or stepped loading deck
or floor permanently incorporated with and supported by frame rails and
cross members.
The finished and unfinished chassis subject to these Orders are
typically classified in the Harmonized Tariff Schedule of the United
States (HTSUS) at subheadings: 8716.39.0090 and 8716.90.5060. Imports
of finished and unfinished chassis may also enter under HTSUS
subheading 8716.90.5010. While the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
[[Page 14641]]
merchandise under the Orders is dispositive.
Merchandise Subject to the Covered Merchandise Inquiry
The covered merchandise inquiry will address whether the scope
covers certain merchandise imported by AXN from China.\8\ Pursuant to
19 CFR 351.227(m)(1), Commerce will consider, based on the available
record evidence, whether the final determination in the covered
merchandise inquiry should be applied on a (i) producer-specific,
exporter-specific, importer-specific basis, or some combination
thereof; or (ii) on a country-wide basis, regardless of the producer,
exporter, or importer, to all products from the same country with the
same relevant physical characteristics as the product at issue.
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\8\ Specifically, CBP requests that Commerce address whether the
following are covered by the scope of the Orders: (1) the axle beams
imported by AXN that can be used on chassis, whether (a)
incorporated into an axle assembly by AXN by adding Chinese-origin
parts; (b) incorporated into an axle assembly by AXN by adding
domestically (i.e., U.S.) sourced parts; (c) incorporated into an
axle assembly by AXN by adding a mix of Chinese-origin and
domestically sourced parts; and/or (d) not incorporated into an axle
assembly by AXN (i.e., as imported); (2) The slider boxes that can
be used on chassis, as imported by AXN; (3) Landing gear sets, as
imported by AXN; and (4) Any merchandise imported by AXN that can be
used on chassis, including, but not limited to, axle beams, slider
boxes, and landing gear leg components/landing gear sets, that, even
if considered individual components, were imported by AXN ``with or
for further assembly with a finished or unfinished chassis'' by
virtue of their intended sale by AXN to manufacturers for use in the
production of completed trailers.
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Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance (E&C)'s Antidumping Duty and Countervailing
Duty Centralized Electronic Service System (ACCESS), unless an
exception applies.\9\ An electronically filed document must be received
successfully in its entirety by the applicable deadline. Each
submission must be placed on the record of the segment of the
proceeding for the AD Order (A-570-135), ACCESS Covered Merchandise
Inquiry segment ``EAPA 7839''.
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\9\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement
and Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Suspension of Liquidation
In accordance with 19 CFR 351.227(l)(1), Commerce will notify CBP
of the initiation of the covered merchandise inquiry and direct CBP to
continue to suspend liquidation of entries of products subject to the
covered merchandise inquiry that were already subject to the suspension
of liquidation, and to apply the cash deposit rate that would be
applicable if the product were determined to be covered by the scope of
the Orders. Should Commerce issue preliminary or final covered
merchandise determinations, Commerce will follow the suspension of
liquidation rules under 19 CFR 351.227(l)(2) through (4). In accordance
with 19 CFR 351.227(l)(5), nothing in this section affects CBP's
authority to take any additional action with respect to the suspension
of liquidation or related measures.
Notification to Interested Parties
Interested parties that wish to participate in this segment of the
proceeding and be added to the public service list(s) for this segment
of the proceeding must file a letter of appearance in accordance with
19 CFR 351.103(d)(1), with one exception: the relevant parties to CBP's
EAPA investigation publicly identified by CBP in the covered
merchandise referral referenced above are not required to submit a
letter of appearance, and will be added to the public service list for
this segment of the proceeding by Commerce.
Commerce placed an APO on the record on March 19, 2025.\10\
Commerce intends to place the business proprietary versions of the
documents (if any) contained in the covered merchandise referral on the
record of this proceeding in ACCESS.
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\10\ See the Administrative Protective Order ``Request for
Establishment of Administrative Protective Order Certain Chassis and
Subassemblies Thereof from the People's Republic of China (A-570-
135),'' dated March 19, 2025.
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Representatives of interested parties must submit applications for
disclosure under the APO in accordance with the procedures outlined in
Commerce's regulations at 19 CFR 351.305. Those procedures apply to
this segment of the proceeding, with one exception: APO applicants
representing the parties that have been identified by CBP as an
importer in the covered merchandise referral (referenced above) are
exempt from the additional filing requirements for importers pursuant
to 19 CFR 351.305(d).
This notice is issued and published pursuant to section 517(b)(4)
of the Act and 19 CFR 351.227(b).
Dated: March 31, 2025.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations.
[FR Doc. 2025-05746 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P