China Low Speed Personal Vehicles: Prelim CVD Cash Deposit Rates Take Effect, Retroactive for Some

Commerce also is considering the imposition of antidumping duties on low speed personal transportation vehicles from China. The agency's preliminary determination is currently due in Jan. 23.

Changes Proposed to Scope of AD/CVD Investigations

In this preliminary determination, Commerce is amending the scope of its AD/CVD investigations on low speed personal transportation vehicles to add tariff schedule number 8703.10.5060 to the list of subheadings included at the end of the scope.

The agency is also seeking comments on several proposed changes to the scope intended to improve the administrability of the scope by CBP and remove several ambiguities.

First, Commerce is proposing to amend language providing for a scope exclusion for spare parts not imported with a low speed personal transportation vehicle. Currently, though it covers spare parts imported alongside a finished vehicle, the scope exempts spare parts “entered and sold by themselves.” However, CBP said it won’t be able to verify if the parts are being sold by themselves after they’re imported. Commerce is proposing to eliminate the “and sold” requirement, so the exemption would be for spare parts “entered by themselves.”

Commerce is also proposing to eliminate several instances of the words “generally” and “typically” from the scope so it provides a clearer definition of what’s included.

Specifically, Commerce proposes to remove the word “generally” from paragraph one, which currently says the investigation “generally open-air vehicles.” Comments on the original scope had argued vehicles with enclosed cabins should be excluded from the scope because neither of the petitioners currently sell vehicles with fully enclosed cabins, but the petitioners said such a change would invite circumvention. Likely to address the circumvention concerns, Commerce would also add language addressing vehicles with temporary sides. The revised scope would read that the investigation covers vehicles that “may have a permanent roof, and may be covered with temporary sides.”

Likewise, the agency is proposing to remove instances of the word “typically” in two paragraphs of the scope. In paragraph two, Commerce is proposing to change language that currently says subject vehicles “typically” have a maximum speed of 25 miles per hour. The proposed language would say subject vehicles “should” have a maximum speed of 25 miles per hour.

Similarly, in paragraph 5, Commerce is proposing to remove language that says excluded off-highway utility vehicles “typically” have a maximum speed over 25 mph, and that says excluded recreational off-highway vehicles “typically” have a maximum speed over 30 mph. Instead, the scope would say the excluded vehicles have a maximum speed over 25 mph and 30 mph, respectively.

Comments from parties to the proposed changes to the scope are due Dec. 13.

Commerce Finds Critical Circumstances for Some; Cash Deposits Retroactive 90 Days

Commerce made a finding that three Chinese exporters -- Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd., Hebei Machinery Import and Export Co., LTD. and Shandong Odes Industry Co. Ltd. -- increased their exports to the U.S. in the run-up to the preliminary determination. This “critical circumstances” finding by the agency means Commerce will retroactively suspend liquidation for these three companies back to 90 days before the preliminary determination, i.e., Sept. 7, 2024.

Commerce didn't find critical circumstances for Xiamen Dalle New Energy Automobile Co., Ltd. and the "all others" companies (i.e., all Chinese companies other than the four listed above), so suspension of liquidation and cash deposit requirements will take effect for Xiamen Dalle and the "all others" companies beginning Dec. 6.

CV Suspension of Liquidation and Cash Deposit Requirements

Commerce says it will instruct CBP to suspend liquidation for all entries of subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the dates listed below. Preliminary CVD cash deposit rates will be required as follows:

(The period of investigation is 01/01/23 - 12/31/23. See Commerce's notice for more information, including the scope, suspension of liquidation, etc. See 2407160020 for a summary of the initiation of this CVD investigation.)