U.S. Finds Subsidies for Low-Speed Vehicles from China, Sets Duties
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On June 23, 2025, the U.S. Department of Commerce released its final determination in the investigation of certain low-speed personal transportation vehicles (LSPTVs) from China. The Department found that subsidies are being given to producers and exporters of these vehicles in China. The investigation covered the period from January 1, 2023 to December 31, 2023.
Background
The Department of Commerce started this process by publishing its preliminary findings in December 2024 and collecting opinions from interested parties. The investigation looked closely at the facts and information provided by companies involved, especially Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd. (Lvtong), Xiamen Dalle New Energy Automobile Co., Ltd. (Xiamen Dalle), as well as two non-responsive companies, Hebei Machinery Import and Export Co., LTD., and Shandong Odes Industry Co. Ltd.
Scope of Investigation
The investigation covers certain low-speed personal transportation vehicles (LSPTVs) from China. These are mainly open-air vehicles powered by electric motors or gas engines and have traditional seating, four wheels, and a gross weight of no more than 5,500 pounds. Vehicles with a fixed roof and integrated doors or windows are not covered. The investigation also includes unfinished vehicles and subassemblies, also called “rolling chassis,” with or without parts like seats, roofs, or tires.
Certain components, like seat assemblies, steering columns, suspension systems, plastic cowlings, and motors, are not included if they come by themselves and have the right certification. However, if they arrive together with LSPTVs or their subassemblies, or without proper certification, they are included.
Methodology and Changes
After reviewing all submissions and conducting verification of the information, Commerce made some changes to subsidy calculations from the preliminary stage. The Department used facts available and sometimes adverse findings when companies did not provide all required data.
Final Subsidy Rates
The Department determined the following subsidy (duty) rates for the period investigated:
- Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd.: 31.45%
- Hebei Machinery Import and Export Co., LTD.: 679.44% *
- Shandong Odes Industry Co. Ltd.: 679.44% *
- Xiamen Dalle New Energy Automobile Co., Ltd.: 44.38%
- All Other Producers/Exporters: 41.14%
*Rates with a star (*) are based on adverse facts available.
Critical Circumstances
The Department found that “critical circumstances” applied, meaning that for some companies, duties will apply to imports made up to 90 days before the preliminary determination (December 6, 2024). This now includes Lvtong, Xiamen Dalle, all others, and the non-responsive companies.
Suspension of Liquidation
U.S. Customs will collect deposits and suspend liquidation (final settlement) on subject imports that entered the U.S. on or after December 6, 2024. Suspension for entries made after April 5, 2025 (the end of provisional measures), was discontinued, but entries before April 4, 2025, remain suspended.
Because of the critical circumstances decision, Customs will suspend liquidation and collect deposits for imports from Xiamen Dalle and all others that entered up to 90 days before December 6, 2024.
If the U.S. International Trade Commission (ITC) finds that the domestic U.S. industry is injured by these imports, a countervailing duty (CVD) order will be issued, and Customs will continue to collect duties. If the ITC finds no injury, all duties will be refunded.
Certification Requirements
Commerce now requires importers of certain LSPTV components (Chinese-origin seat assemblies, steering columns, suspension systems, plastic cowlings, or motors) to certify that these parts are not being combined with subject LSPTVs or subassemblies. Specific certification procedures and records are required, as detailed in the official notice.
Importers must keep this documentation for at least five years after the last entry covered or three years after any court cases are finished. If an importer fails to follow these rules, all their affected entries may be considered subject to duties.
Next Steps
The Commerce Department will notify the ITC of its decision. The ITC will decide within 45 days if imports of LSPTVs from China are causing harm to the U.S. industry. If the answer is yes, Commerce will issue a formal CVD order. If not, the case will end, and money collected will be returned.
Appendices
The notice includes the full legal definition (“scope”) of the products covered, the importer certification form, and a full list of topics addressed in Commerce’s Issues and Decision Memorandum.
For further details, all documents are on file with the U.S. Department of Commerce and available online.
Contact Information
For questions, contact Dan Alexander in the Enforcement and Compliance office at the U.S. Department of Commerce: (202) 482-4313.
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.
