U.S. Department of Commerce Finds Countervailable Subsidies for Certain Brake Drums from China

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U.S. Department of Commerce Finds Countervailable Subsidies for Certain Brake Drums from China

The U.S. Department of Commerce has issued its final determination that producers and exporters of certain brake drums from the People’s Republic of China receive countervailable subsidies. The investigation covered the period from January 1, 2023, through December 31, 2023.

Investigation Background

On December 3, 2024, the Department of Commerce published its preliminary findings in the Federal Register. CAIEC Trailer Master Co., Ltd., a key respondent, withdrew from the case on February 21, 2025. A post-preliminary analysis was released on April 1, 2025. All events and comments submitted by interested parties were taken into account in the final determination.

Scope of the Investigation

The products under investigation are gray cast iron brake drums from China. These brake drums have an actual or nominal inside diameter of 14.75 inches or more, but not over 16.6 inches, and weigh more than 50 pounds. Both finished and unfinished brake drums are included. The detailed description of the products is set out in Appendix I of the final notice.

Certain drum and chassis products from China covered by earlier antidumping and countervailing duty orders are excluded from the scope. Brake drums with more than 38 percent steel by weight are also excluded.

Changes to Product Scope

During the investigation, comments were received regarding the scope of products. The Department issued a Preliminary Scope Decision Memorandum and later added more Harmonized Tariff Schedule subheadings in response to comments. These changes are reflected in Appendix I.

Verification of Information

In January 2025, the Department verified information provided by Shandong ConMet Mechanical, Ltd. and Weifang ConMet Mechanical Products Co., Ltd. (collectively, ConMet). Standard procedures were used to check accounting records and source documents.

Analysis and Methodology

The Department reviewed various subsidy programs. The final decision outlines which programs were found to be countervailable. The official record provides a detailed list of the issues raised by interested parties. The full methodology is available in the Issues and Decision Memorandum.

The Department determined if subsidies existed by confirming financial contributions from authorities, proof of benefit to recipients, and specificity.

The Department relied partly on facts available and used adverse inferences, especially concerning CAIEC’s withdrawal and data gaps. Details are in the preliminary memorandum and the final Issues and Decision Memorandum.

Calculation Changes

The subsidy rate for ConMet was changed based on comments and verification. For CAIEC, the calculation relied on adverse inferences. The adverse facts available (AFA) rate was updated to include rates for three additional programs and corrections.

All-Others Rate

The ‘all-others’ rate is based on ConMet’s revised rate, because its rate is not zero, de minimis, or entirely based on facts otherwise available.

Final Subsidy Rates

The Department assigned these rates:

*Rates marked with an asterisk are based on facts available with adverse inferences.

Suspension of Liquidation

On December 3, 2024, the Department told U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of relevant entries. Suspension was lifted for entries after April 2, 2025, but remains for earlier entries. If the International Trade Commission (ITC) gives a final injury determination, the Department will order more actions, including duty deposits on future entries.

ITC Process

The Department will notify the ITC about its findings. The ITC must decide within 45 days whether U.S. industry is harmed or threatened by these imports. If not, the process ends and deposits are refunded.

Access to Documents

Interested parties may access all public documents online through the Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS) at https://access.trade.gov.

Administrative Protective Orders

The notice reminds parties of their responsibilities to return or destroy proprietary information as required by law.

Official Signing

The determination was signed by Steven Presing, Acting Deputy Assistant Secretary for Policy and Negotiations, on June 13, 2025.

For More Information

Contact Nathan James at (202) 482-5305 or Olivia Woolverton at (202) 482-7452.

See the Federal Register, Volume 90, Number 116, pages 26002-26004, for the complete notice.

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This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.