New Antidumping and Countervailing Duty Petitions on Steel Wheels from China
Accuride Corporation and Maxion Wheels Akron LLC (“petitioners”), on March 27, 2018, filed antidumping (AD) and countervailing duty (CVD) petitions on certain steel wheels from China.
The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of certain steel wheels.
The scope of these petitions is certain on-the-road steel wheels for use with tubeless tires with a wheel diameter of 22.5 inches and 24.5 inches. Certain on-the-road wheels with a wheel diameter of 22.5 inches and 24.5 inches are generally designed, manufactured, and offered for sale for use on road and highway surfaces by Class 6, 7, and 8 commercial vehicles, including tractors, semi-trailers, dump trucks, garbage trucks, concrete mixers, and buses, and are the current standard wheel diameters for such applications. The standard widths of certain steel wheels are 7.5 inches, 8.25 inches, and 9.0 inches, but all certain steel wheels, regardless of width, are covered by the scope. While 22.5 inches and 24.5 inches are standard wheel sizes used by Class 6, 7, and 8 commercial trucks, their trailers, buses, and other commercial vehicles, and have been for several decades, these petitions are intended to cover new sizes that may be adopted for use on Class 6, 7, and 8 commercial vehicles.
The scope includes “hub-piloted” steel wheels and “stud-piloted” steel wheels and includes rims and discs for such wheels, whether imported as an assembly or separately. The scope includes wheels, discs, and rims, of carbon and/or alloy composition, whether cladded or not cladded, whether finished or not finished, and whether coated or uncoated. All on-the-road wheels sold in the United States are subject to the requirements of the National Highway Traffic Safety Administration and bear markings, such as the “DOT” symbol, indicating compliance with applicable motor vehicle standards. The scope includes steel wheels imported with and without the required markings, which may be added after importation. Steel wheels imported as an assembly with a tire mounted on the wheel or with a valve stem attached are included. However, if the steel wheels are imported as an assembly with a tire mounted on the wheel or with a valve stem attached, the tire or valve stem is not covered by the scope.
Excluded from the scope are steel wheels for use with tube-type tires. Also excluded from the scope are wheels where steel represents less than fifty percent of the product by weight (e.g., aluminum wheels). Steel wheels manufactured and offered for sale primarily for off-highway or off-the-road use are also excluded from the scope. Such wheels are not required to meet the National Highway Traffic Safety Administration’s requirements. Steel wheels that meet the National Highway Traffic Safety Administration’s requirements, but can be used off-road, are included in the scope.
The subject imports are currently classified under HTSUS 8708.70.4530, 8708.70.4560, 8708.70.6030, 8708.70.6060, 8716.90.5045, and 8716.90.5059. Wheels meeting the scope description may also enter under HTSUS subheadings 4011.20.1015, 4011.20.5020, and 8708.99.48.50. The HTSUS subheadings and specifications are provided for convenience and customs purposes only; the written description of the scope of this investigation is dispositive.
Alleged Dumping and Subsidy Margins
The petitioners allege dumping margins of 11.3 percent to 231.7 percent.
No specific subsidy rates were alleged.
Estimated Schedule of Investigations
- March 27, 2018 – Petition is filed
- April 16, 2018 – DOC initiates investigation
- April 17, 2018 – ITC staff conference
- May 11, 2018 – Deadline for ITC preliminary injury determinations
- June 20, 2018 – Deadline for DOC preliminary CVD determination, if not postponed
- August 24, 2018 – Deadline for DOC preliminary CVD determination, if fully postponed
- September 4, 2018 – Deadline for DOC preliminary AD determination, if not postponed
- October 23, 2018 – Deadline for DOC preliminary AD determination, if fully postponed
- March 7, 2019 – Deadline for DOC final AD and CVD determinations, if both preliminary and final AD determination deadlines are fully postponed
- April 21, 2019 – Deadline for ITC final injury determinations, assuming fully postponed DOC deadlines