China Low Speed Vehicles: Prelim AD Cash Deposit Rates Take Effect, Retroactive for All
The Commerce Department published its preliminary affirmative antidumping determination Jan. 30 that low speed personal transportation vehicles from China (A-570-176), including golf carts, are being sold in the U.S. at less than fair value. Commerce found “critical circumstances” for all Chinese companies, and will retroactively suspend liquidation and impose antidumping duty cash deposit requirements for all subject merchandise as of Nov. 1.
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Low speed personal transportation vehicles are already subject to suspension of liquidation, as of Dec. 6 for some companies and retroactive to Sept. 7 for others, as well as countervailing duty cash deposit requirements ranging from 21.23% to 515.37%, under Commerce's preliminary CVD determination published in December (see 2407160020).
Scope Changes Address Administrability Concerns
In this preliminary determination, Commerce is amending the scope of its AD/CVD investigations on low speed personal transportation vehicles from China to improve the administrability of the scope by CBP and remove several ambiguities.
First, Commerce is amending 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 told Commerce that it won’t be able to verify if the parts are being sold by themselves after they’re imported. Commerce is eliminating the “and sold” requirement, so the exemption is now for spare parts “entered by themselves.”
Commerce is also eliminating several instances of the words “generally” and “typically” from the scope so it provides a clearer definition of what’s included.
Specifically, Commerce is removing the word “generally” from paragraph one, which previously said 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 sells vehicles with fully enclosed cabins, but the petitioners said such a change would invite circumvention. To address the circumvention concerns, Commerce is adding language addressing vehicles with temporary sides. The revised scope says that the investigation covers vehicles that “may have a permanent roof, may have a permanent windshield, and may be covered with temporary sides.”
Likewise, the agency is removing 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 new language says subject vehicles “should” have a maximum speed of 25 miles per hour.
Similarly, in paragraph 5, Commerce is removing 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 now says the excluded vehicles have a maximum speed over 25 mph and 30 mph, respectively.
AD Suspension of Liquidation and Cash Deposit Requirements
Effective for entries on or after Nov. 1, 2024, Commerce requires AD cash deposits, at the following AD rates (note that liquidation for these companies is already suspended due to Commerce's CVD investigation):
| Exporter | Producer | AD Rate | Adjusted* |
|---|---|---|---|
| Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd | Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd | 127.35% | 127.29% |
| Xiamen Dalle New Energy Automobile Co., Ltd | Xiamen Dalle New Energy Automobile Co., Ltd | 262.55% | 262.55% |
| Average-Rate Companies | 248.19% | 248.16% | |
| China-wide Entity | 478.09% | 478.09% |
*As adjusted for export subsidies found in Commerce's concurrent CVD investigation. This rate is currently in effect for cash deposit purposes, and will remain in effect while Commerce is collecting CVD cash deposits. If the “provisional measures” period in the CVD investigation expires, the rate in the “AD Rate” column will take effect for cash deposit purposes, until such time that CVD collection resumes.
Average rate companies. Commerce assigned an average of the named companies' rates to 38 producer-exporter combinations that demonstrated independence from Chinese government control but were not individually investigated. See Commerce's notice for a full list.
(The period of investigation is 10/01/23 - 03/31/24. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 2412050034 for a summary of the initiation of this investigation.)