Background

Separate petitions filed June 20 allege that brake drums from China and Turkey, and low-speed personal transportation vehicles from China, are being sold at less than fair value in the U.S. and benefiting from countervailable subsidies. The alleged average dumping margins are 300.83 percent for China and 168.34 percent for Turkey with respect to brake drums, and 376.7-477.31 percent for China with respect to low-speed vehicles.

The first petition covers certain brake drums, made of gray cast iron, whether finished or unfinished, weighing more than 50 pounds, with an actual or nominal inside diameter of 14.75 inches or more but not over 16.6 inches, for use in commercial vehicles. These brake drums are classified under HTSUS 8708.30.5020 and may also enter under HTSUS 8708.30.5020 or 8708.30.5090 when combined with a hub to form an assembly.

The second petition covers LSPTVs and subassemblies thereof, whether finished or unfinished, whether assembled or unassembled, and with or without tires, wheels, seats, steering columns, steering wheels, canopies, roofs, or batteries. They are generally open-air vehicles powered by either an electric motor and battery or a gas-powered internal combustion engines and typically have a maximum top speed of 25 miles per hour. They may be described as golf carts, golf cars, low-speed vehicles, personal transportation vehicles, or light utility vehicles. Subject vehicles are typically classified under HTSUS 8703.10.5030 and may also enter under HTSUS 8703.90.0100. Covered subassemblies typically enter under HTSUS 8706.00.1540 and 8707.10.0040.

All-terrain vehicles, multipurpose off-highway utility vehicles, recreational off-highway vehicles, go-karts, electric scooters, golf trolleys, and mobility aids are excluded from the petition.

The Department of Commerce and the International Trade Commission will next determine whether to launch AD and CV duty and injury investigations, respectively, on these products. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact Sandler, Travis & Rosenberg as soon as possible.

For more information, please contact attorney Kristen Smith at (202) 730-4965.

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