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New Trade Case on Imports of Steel Wheels from China

By Mark R. Ludwikowski / Mar 29, 2018

A new US antidumping (AD) and countervailing duty (CVD) case was filed on March 26, 2018 by Accuride Corporation and Maxion Wheels Acron LLC (petitioners) against imports of Certain Steel Wheels from China.

This is a second case on Steel Wheels from China in recent years. In 2012, the International Trade Commission (ITC) found that the imports did not injure domestic industry and terminated the case.

The Department of Commerce and the ITC will next determine whether to launch AD and/or CVD duty and injury investigations, respectively, on these products. Commerce will be responsible for calculating the ultimate AD/CVD margins on the imports, while the ITC will conduct a concurrent investigation to determine if the imports are injuring the U.S. industry. If Commerce finds dumping or unfair subsidization in its preliminary determinations, currently scheduled for June 19, 2018 (CVD) and September 3, 2018 (AD), importers will be charged the calculated duties upon the products’ entry in the U.S. market.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know  so that we can provide you with additional information as it becomes available.

The following are key facts about this trade case:

Petitioners: Accuride Corporation and Maxion Wheels Acron LLC.

Foreign Producers/Exporters and US Importers:  Please contact us for a listing of individual companies named in the petition.

Alleged AD and CVD margins:  Petitioner has alleged the following AD margins: 11.3% to 231.7%; and CVD margins: 0.03% to 77.27%.

Merchandise covered by the scope of the case: The scope of these petitions is certain on-the-road steel wheels for use with tubeless tires with a wheel diameter of 22.5 inches and 24.5 inches. Certain on-the-road wheels with a wheel diameter of 22.5 inches and 24.5 inches are generally designed, manufactured, and offered for sale for use on road and highway surfaces by Class 6, 7, and 8 commercial vehicles, including tractors, semi-trailers, dump trucks, garbage trucks, concrete mixers, and buses, and are the current standard wheel diameters for such applications. The standard widths of certain steel wheels are 7.5 inches, 8.25 inches, and 9.0 inches, but all certain steel wheels, regardless of width, are covered by the scope. While 22.5 inches and 24.5 inches are standard wheel sizes used by Class 6, 7, and 8 commercial trucks, their trailers, buses, and other commercial vehicles, and have been for several decades, these petitions are intended to cover new sizes that may be adopted for use on Class 6, 7, and 8 commercial vehicles.

The scope includes “hub-piloted” steel wheels and “stud-piloted” steel wheels and includes rims and discs for such wheels, whether imported as an assembly or separately. The scope includes wheels, discs, and rims, of carbon and/or alloy composition, whether cladded or not cladded, whether finished or not finished, and whether coated or uncoated. All on-the-road wheels sold in the United States are subject to the requirements of the National Highway Traffic Safety Administration and bear markings, such as the “DOT” symbol, indicating compliance with applicable motor vehicle standards. The scope includes steel wheels imported with and without the required markings, which may be added after importation. Steel wheels imported as an assembly with a tire mounted on the wheel or with a valve stem attached are included. However, if the steel wheels are imported as an assembly with a tire mounted on the wheel or with a valve stem attached, the tire or valve stem is not covered by the scope.

Excluded from the scope are steel wheels for use with tube-type tires. Also excluded from the scope are wheels where steel represents less than fifty percent of the product by weight (e.g., aluminum wheels). Steel wheels manufactured and offered for sale primarily for offhighway or off-the-road use are also excluded from the scope. Such wheels are not required to meet the National Highway Traffic Safety Administration’s requirements. Steel wheels that meet the National Highway Traffic Safety Administration’s requirements, but can be used offroad, are included in the scope.

Imports of the subject merchandise are provided for under the following categories of the Harmonized Tariff Schedule of the United States (“HTSUS”): 8708.70.4530, 8708.70.4560, 8708.70.6030, 8708.70.6060, 8716.90.5045, and 8716.90.5059. Wheels meeting the scope description may also enter under the following HTSUS subheadings: 4011.20.1015, 4011.20.5020, and 8708.99.48.50. While HTSUS subheadings are provided for convenience and customs purposes, the written description of the subject merchandise is dispositive.

If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.com; 202-640-6680) or another member of Clark Hill's International Trade Practice Group.