China Golf Carts: Commerce Issues AD Final Determination

The next step is for the International Trade Commission to make its final injury determination, currently scheduled for July 31, according to a Commerce fact sheet. If the ITC finds injury, Commerce will issue an AD order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.

Commerce also issued its final determination in the concurrent countervailing duty investigation on low speed personal transportation vehicles from China, with CVD rates ranging from 31.45% to 679.44%. Collection of CVD is on hold pending the ITC's final injury determination (see 2506240072).

Scope Amended, New Importer Certification Requirement Added

Commerce is amending the scope of its AD/CVD investigations on low speed personal transportation vehicles from China to add a certification requirement to address potential circumvention by way of importation of parts and subassemblies for assembly in the U.S., and also to clarify an exemption for permanently enclosed vehicles and scope language on the role of industry standards.

The certification will require that the importer say that neither they nor a “related” entity will assemble Chinese parts and components with Chinese subassemblies or rolling chassis to produce low speed personal transportation vehicles after importation, regardless of whether the parts and components are imported separately from the subassembly or rolling chassis.

“For this purpose, Commerce is defining the term ‘related,’ which is not part of our regulations or the statute, to include companies that may be acting in concert with the importer to assemble” personal transportation vehicles “from Chinese components, including subject subassemblies/rolling chassis, after importation,” the agency said.

Certifications will not be required for all parts and components – nuts and bolts are exempt, for example – but they will be required for Chinese-origin seat assemblies, steering columns, suspension systems, plastic cowlings, and electric and gas-powered motors. “These parts are listed by the petitioner as the most likely parts to be used to circumvent the order,” Commerce said.

On the permanently enclosed vehicle exemption, Commerce is adding the following language to the scope: “Vehicles with a roof and four sides with doors and windows permanently integrated into the chassis at the time of production (e.g., the sides are welded to the chassis and roof) are not subject to the order.”

Finally, Commerce is adding language to the scope to clarify that SAE and OPEI standards listed in the scope “are for reference purposes only, and whether merchandise is certified to those standards is not dispositive of whether that merchandise is subject to this investigation.”

Critical Circumstances for All Chinese Companies, Cash Deposits Retroactive 90 Days

Commerce continued to find that all Chinese companies under investigation increased their exports to the U.S. in the run-up to the preliminary determination. As a result, the agency will still direct CBP to retroactively suspend liquidation and require AD cash deposits for subject merchandise from these companies 90 days before the preliminary determination, i.e., Nov. 1, 2024.

Suspension of liquidation and CVD cash deposit collection is in effect even earlier, i.e., as of Sept. 7, 2024, as a result of Commerce's finding of critical circumstances in the CVD investigation (including a new critical circumstances finding for Xiamen Dalle and the all-others companies).

Estimated AD Cash Deposit Rates

Commerce will instruct CBP to continue to suspend liquidation for AD purposes and collect cash deposits for subject merchandise entered on or after the dates listed below, and set cash deposit rates as follows:

*As adjusted for export subsidies found in the concurrent CVD investigation. This adjustment is not in effect, and will only be the cash deposit rate once CVD collection resumes upon publication of the ITC's final injury determination.

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 of the investigation, detailed instructions on cash deposit rates, etc. See 2501300042 for Commerce's preliminary determination in this investigation.)