Chinese Components of Vietnamese Chassis Are Within Scope of AD/CVD Orders, Commerce Says
Finished chassis imported by Pitts Enterprises and produced by a Vietnamese supplier, THACO, using components manufactured in China are within the scope of antidumping duty and countervailing duty orders on chassis from China, the Commerce Department said in final remand results filed Feb. 10 with the Court of International Trade (Pitts Enterprises v. United States, CIT # 24-00030).
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In a final scope ruling, Commerce had determined that Pitts’ imported chassis were subject to the AD/CVD orders, saying the product “contained more than just Chinese-origin axles and landing gears but also contained multiple other components from China that ultimately composed unassembled subassemblies.”
The importer challenged this ruling, and CIT remanded it on the basis that the orders "contain multiple ambiguities," including "when components are included within the scope of the Orders," when third-country operations exclude the individual components from the orders, and the meaning of "subassemblies ... whether ... assembled or unassembled" (see 2510080043).
Specifically, Judge Claire Kelly said “entered” referred to “‘entered into the United States,’” not “‘entered into Vietnam’" or other third countries (see 2510080043).
While Commerce said “THACO’s imported Chinese chassis components do not constitute subject merchandise because they have not ‘entered’ into the United States,” Commerce determined “welding and assembly of running gear and axle subassembly components and landing gear subassembly components does not remove these finished subassemblies from the scope of the Orders,” according to the remand results.
The agency said record evidence shows that THACO "imported almost all components for the running gear subassemblies, which includes the axle assemblies, and landing gear subassemblies from China and only fabricated or imported a few components from other countries for these subassemblies." THACO also imported from China other chassis components, and while THACO didn't buy any fully assembled subassemblies or chassis from China, the agency found that THACO's third-country processing in Vietnam of Chinese components doesn't preclude the subassemblies from qualifying as subject merchandise, Commerce said.
Commerce additionally found “only the landing gear and running gear subassemblies within Pitts’ imported finished chassis from Vietnam are subject to the scope of the Orders” and “only the value of the landing gear and running gear subassemblies within these finished chassis are subject to the AD and CVD duties.”
Thus, Commerce determined “no duties, with respect to these Orders, will be collected from the value of the remaining sections of the finished chassis.”