U.S. Finds Chinese Brake Drums Sold Below Fair Value
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The U.S. Department of Commerce has made a final decision about certain brake drums from China. The Department says these brake drums are being sold in the United States for less than fair value.
What Is the Product?
The investigation looked at brake drums made from gray cast iron. They must have an actual or nominal inside diameter of 14.75 inches or more, but not over 16.6 inches. The brake drums must weigh more than 50 pounds.
Brake drums are included if they are finished or unfinished, imported alone or with non-subject items like a hub. Assemblies are covered, but only the brake drum itself is part of this case. Some brake drums are excluded, like composite drums with more than 38 percent steel by weight, and some covered by other antidumping orders.
Investigation Timeline
- The Department started the investigation on January 29, 2025.
- The period looked at sales between October 1, 2023, and March 31, 2024.
- Changes were made since the preliminary decision after reviewing comments and documents from companies.
Companies Involved
The investigation looked at several Chinese companies, including Shandong ConMet Mechanical Co., Ltd. The Department checked sales and production information from these companies.
Dumping Margins and Results
The Department determined the following estimated dumping margins:
| Producer | Exporter | Weighted-Average Dumping Margin (%) | Cash Deposit Rate (%) |
|---|---|---|---|
| Shandong ConMet Mechanical Co., Ltd. | Shandong ConMet Mechanical Co., Ltd. | 77.14 | 77.14 |
| Liaoning Hechuang CV Parts MFG Co. | Liaoning Hechuang CV Parts MFG Co. | 77.14 | 77.14 |
| Hebei OE Auto Spare Parts Co., Ltd. | Ningbo Qingchen Intl. Trade Co., Ltd. | 77.14 | 77.14 |
| Longyao County Yiheng Auto Parts Co. | Qingdao Jasmine Intl. Trade Co., Ltd. | 77.14 | 77.14 |
| Shandong Lingang Nonferrous Metals Co. | Qingdao Tordon Brake Co., Ltd. | 77.14 | 77.14 |
| Qiqihar Beimo Auto Parts Mfg Co., Ltd. | Qiqihar Beimo Auto Parts Mfg Co., Ltd. | 77.14 | 77.14 |
| Shandong Lingang Nonferrous Metals Co. | Shandong Haoxin Co., Ltd. | 77.14 | 77.14 |
| Shandong Hongma Engineering Machinery | Shandong Hongma Engr. Machinery Co., Ltd. | 77.14 | 77.14 |
| Longyao Gucheng Automobile Parts Factory | Shandong North Autotech Co., Ltd. | 77.14 | 77.14 |
| Shandong Longji Machinery Co., Ltd. | Shanghai Winsun Auto Parts Co., Ltd. | 77.14 | 77.14 |
| China-Wide Entity | 160.79* | 150.25 |
*The higher margin for the China-Wide Entity is based on facts available with adverse inferences.
Rates and Instructions
U.S. Customs and Border Protection (CBP) will keep suspending the liquidation of entries for these products after January 29, 2025. Importers must place cash deposits at the rates shown. If the U.S. International Trade Commission (ITC) finds U.S. industry injured by these products, antidumping duties will be ordered.
Possible Changes
If the ITC decides there is no injury, the process will stop, and any deposits will be returned. If injury is found, the cash deposit rates may be updated for subsidies.
Where to Find More Information
The full Issues and Decision Memorandum, including changes and comments from interested parties, is available online at here.
Conclusion
The Department of Commerce has finished its investigation. Many Chinese companies exporting certain brake drums to the U.S. will face high dumping margins. The final decision now goes to the ITC to determine if these sales harmed U.S. industry.
Legal Disclaimer
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.
