China Golf Carts: Commerce Issues CVD Final Determination
The Commerce Department issued its final determination in its countervailing duty investigation on low speed personal transportation vehicles from China (C-570-177). Suspension of liquidation is currently not in effect for entries on or after April 5, 2025, and Commerce will require cash deposits of estimated CVD on future entries only if it issues a CVD order.
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Before Commerce issues a CVD order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due July 31, Commerce said in a fact sheet. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.
In this final determination, Commerce is imposing new retroactive suspension of liquidation for entries from Xiamen Dalle and the "all-other" companies on or after Sept. 7, 2024, as a result of its new finding of critical circumstances. Commerce also maintained its critical circumstances findings and retroactive suspension of liquidation for all other Chinese companies subject to this investigation.
Commerce also issued a final determination in its concurrent AD duty investigation on low speed personal transportation vehicles from China, setting AD rates ranging from 119.39% to 478.09% for Chinese exporters (see 2506240067).
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.”
CV Susp/Cash Deposit Through April 4
For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from Sept. 7, 2024, through April 4, 2025.
CV Liq Reinstated and No CV Cash Deposit as of April 5
Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after April 5, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation without a CV duty order in place.
Suspension of liquidation currently remains in effect for AD purposes.
CV Liq to Be Suspended Again and CV Cash Deposit Required if Order Issued
Commerce will issue a CV duty order, reinstate the CV duty suspension of liquidation for all Chinese exporters, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.
| Company | CVD Rate | Sus Liq |
|---|---|---|
| Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd. | 31.45% | 09/07/24 |
| Hebei Machinery Import and Export Co., LTD. | 679.44% | 09/07/24 |
| Shandong Odes Industry Co. Ltd. | 679.44% | 09/07/24 |
| Xiamen Dalle New Energy Automobile Co., Ltd. | 44.38% | 09/07/24 |
| All Others | 41.14% | 09/07/24 |
(Note that there is no CVD liability, and no CVD will be assessed, on entries during the "gap period" of April 5 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/23 - 12/31/23. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 2412050034 for a summary of the preliminary determination of this investigation, and 2502180060 for amended rates.)