China Freight Rail Couplers: Commerce Issues CV Duty Final Determination

Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due June 29, according to a Commerce fact sheet. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.

Commerce is conducting a concurrent AD duty investigation on freight rail couplers from China, setting AD cash deposit rates at 169.9% for all Chinese companies in a preliminary determination issued in March (see 2303100057). The agency also set cash deposit requirements in early May in its ongoing AD investigation on freight rail couplers from Mexico (see 2305020045).

Critical Circumstances for All Except Sanmei

Commerce continued to find “critical circumstances” for all nine Chinese exporters that were individually investigated but reversed its critical circumstances finding for Chongqing Tongyao and Qingdao Sanheshan. Commerce will direct CBP to continue to suspend liquidation and require CV duty cash deposits for the nine individual respondents on or after Dec. 3, 2022. However, the agency will direct CBP to end CV suspension of liquidation and refund any cash deposits collected on entries from the "all-others" companies prior to March 3, 2023.

Estimated CV Cash Deposit Rates

Commerce will instruct CBP to continue to suspend liquidation for CV duty purposes and collect cash deposits for subject merchandise entered on or after the dates listed below, and set cash deposit rates as follows, beginning May 19:

(The period of investigation is 01/01/21 - 12/31/21. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 2303020035 for a summary of the preliminary determination of this investigation.)