China Freight Rail Couplers: Prelim CV Cash Deposit Rates Take Effect
The Commerce Department is setting new countervailing duty cash deposit requirements for imports of freight rail couplers from China (C-570-146), after finding illegal subsidization of Chinese producers in the preliminary determination of its CV duty investigation. Suspension of liquidation and cash deposit requirements take retroactive effect for entries on or after Dec. 3, 2022, as a result of Commerce's finding of critical circumstances for all Chinese exporters.
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Commerce also is considering the imposition of antidumping duties on freight rail couplers from China. The agency's preliminary AD duty determination is currently due in March. Commerce also is conducting an AD investigation on freight rail couplers from Mexico.
Commerce Finds Critical Circumstances for All; Cash Deposits Retroactive 90 Days
Commerce recently made a finding that all Chinese companies under investigation increased their exports to the U.S. in the run-up to the preliminary determination. This "critical circumstances" finding by the agency means Commerce will retroactively suspend liquidation for these companies back to 90 days before the preliminary determination, i.e., on or about Dec. 3, 2022.
CV Suspension of Liquidation and Cash Deposit Requirements
Commerce says it will instruct CBP to suspend liquidation for all entries of subject merchandise that is entered, or withdrawn from warehouse, for consumption on or after Dec. 3, 2022. Preliminary CV cash deposit rates will be required as follows:
| Company | CV Rate |
|---|---|
| Chongqing Changzheng Heavy Industry Co., Ltd. | 265.99% |
| Chongqing Tongyao Transportation Equipment Co. | 265.99% |
| CRRC Qiqihar Co., Ltd. | 265.99% |
| NanJing Zhongsheng Rolling Stock Components Co. Ltd. | 265.99% |
| Ningbo Minghui Metal Technology Co., Ltd. | 265.99% |
| Qingdao Lianshan Casting Co., Ltd. | 265.99% |
| Qingdao Sanheshan Precision Casting Co., Ltd. | 265.99% |
| Shaanxi Haiduo Railway Technology Development Co., Ltd. | 265.99% |
| Shanghai Voith Xiagujin Chuang Coupler Technology Co., Ltd. | 265.99% |
| All other companies | 265.99% |
(The period of investigation is 01/01/21 - 12/31/21. See Commerce's notice for more information, including the scope, suspension of liquidation, etc. See 2210240025 for a summary of the initiation of this CV duty investigation, and 2209300052 for the underlying petition.)