90 FR 146 pgs. 36137-36139 - Certain Chassis and Subassemblies Thereof From Mexico: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
Type: NOTICEVolume: 90Number: 146Pages: 36137 - 36139
Pages: 36137, 36138, 36139Docket number: [C-201-866]
FR document: [FR Doc. 2025-14638 Filed 7-31-25; 8:45 am]
Agency: Commerce Department
Sub Agency: International Trade Administration
Official PDF Version: PDF Version
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-866]
Certain Chassis and Subassemblies Thereof From Mexico: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
AGENCY:
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain chassis and subassemblies (chassis) thereof from Mexico. The period of investigation is January 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
DATES:
Applicable August 1, 2025.
FOR FURTHER INFORMATION CONTACT:
Jose Rivera or Isaiah Kahn, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0842 or (202) 482-8328, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on March 24, 2025. 1 On May 5, 2025, Commerce postponed the preliminary determination of this investigation and the revised deadline is now July 28, 2025. 2
Footnotes:
1 ? See Certain Chassis and Subassemblies Thereof from Mexico and Thailand: Initiation of Countervailing Duty Investigations, 90 FR 13452 (March 24, 2025) ( Initiation Notice ).
2 ? See Certain Chassis and Subassemblies Thereof from Mexico and Thailand: Postponement of Preliminary Determinations in the Countervailing Duty Investigations, 90 FR 18961 (May 5, 2025).
For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum. 3 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
Footnotes:
3 ? See Memorandum, "Decision Memorandum for the Preliminary Affirmative Determination in the Countervailing Duty Investigation of Certain Chassis and Subassemblies Thereof from Mexico," dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
Scope of the Investigation
The products covered by this investigation are chassis from Mexico. For a complete description of the scope of this investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations, 4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage ( i.e., scope). 5 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum. 6 Commerce is not preliminarily modifying the scope language as it appeared in the Initiation Notice. See scope in Appendix I.
Footnotes:
4 ? See Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997) ( Preamble ).
5 ? See Initiation Notice, 90 FR at 13453.
6 ? See Memorandum, "Less Than Fair Value and Countervailing Duty Investigations of Certain Chassis and Subassemblies Thereof from Mexico, Thailand, and the Socialist Republic of Vietnam: Preliminary Scope Decision Memorandum," dated concurrently with this memorandum.
Methodology
Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an "authority" that gives rise to a benefit to the recipient, and that the subsidy is specific. 7 For a full description of the methodology underlying our preliminary determination, see the Preliminary Decision Memorandum.
Footnotes:
7 ? See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
Commerce notes that, in making these findings, we relied on facts available and, because we find that Hyundai de Mexico S.A. de C.V. (HYMEX) did not act to the best of its ability to respond to Commerce's requests for information, we drew an adverse inference where appropriate in selecting from among the facts otherwise available. 8 For further information, see "Use of Facts Otherwise Available and Adverse Inferences" section in the Preliminary Decision Memorandum.
Footnotes:
8 ? See sections 776(a) and (b) of the Act.
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final countervailing duty (CVD) determination in this investigation with the final determination in the companion less-than-fair-value (LTFV) investigation of chassis from Mexico based on a request made by the U.S. Chassis Manufacturers Coalition (the petitioner). 9 Consequently, the final CVD determination will be issued on the same date as the final LTFV determination, which is currently scheduled to be issued no later than December 8, 2025, unless postponed.
Footnotes:
9 ? See Petitioner's Letter, "Request to Align Countervailing Duty Investigation Final Determination with Antidumping Duty Investigation Final Determination," dated July 16, 2025.
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and de minimis rates and any rates based entirely under section 776 of the Act.
[top] Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual estimated countervailable subsidy rates established for all exporters and producers individually examined are zero, de minimis, or determined based entirely on facts otherwise available, Commerce may use "any reasonable method" to establish the estimated subsidy rate for all other producers or exporters. In this investigation, Commerce preliminarily determined the individually estimated subsidy rate for the individually examined respondent, HYMEX, based entirely on facts otherwise available under section 776 of the Act. This is the only rate available in this proceeding for deriving the all-others rate. Consequently, Commerce
Rate for Non-Responsive Companies
The following nine exporters and/or producers of chassis from Mexico did not respond to the quantity and value (Q&V) questionnaire: (1) BRD Trailers, S.A. de C.V.; (2) Carrocerias Gallegos S.A. de C.V.; (3) Commercializadora Nimmka; S.A. de C.V. (d/b/a Atro Remolques y Carroceria); (4) Carrocerias Corpus Christi S.A. DE C.V.; (5) Fruehauf de Mexico; S.A. de C.V.; (6) Lodi Trailers; (7) Norstar Trailers Mexico S de R.L. de C.V. (d/b/a Iron Bull Trailers); (8) Semiremolques El Paisano S.A. de C.V.; and (9) Ventura Trailers (collectively, the non-responsive companies). We find that, by not responding to the Q&V questionnaire, these companies withheld necessary information that was requested of them, failed to provide information within the deadlines established, and significantly impeded this proceeding. Thus, in reaching our preliminary determination, pursuant sections 776(a)(1) and (2)(A)-(C) of the Act, we are basing the countervailable subsidy rate for the non-responsive companies on facts otherwise available.
In addition, we preliminary determine that an adverse inference is warranted, pursuant to section 776(b) of the Act. By failing to submit responses to Commerce's Q&V questionnaire, these companies did not cooperate to the best of their ability in this investigation. Accordingly, we preliminarily find that an adverse inference is warranted to ensure that the non-responsive companies will not obtain a more favorable result than had they fully complied with our request for information. For more information on the application of adverse facts available (AFA), see "Use of Facts Otherwise Available and Adverse Inferences" in the Preliminary Decision Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated countervailable subsidy rates exist:
| Company | Subsidy rate (percent ad valorem ) |
|---|---|
| Hyundai de Mexico S.A. de C.V | *?133.18 |
| BRD Trailers, S.A. de C.V | *?133.18 |
| Carrocerias Gallegos S.A. de C.V | *?133.18 |
| Commercializadora Nimmka, S.A. de C.V. (d/b/a Atro Remolques y Carroceria) | *?133.18 |
| Carrocerias Corpus Christi S.A. DE C.V | *?133.18 |
| Fruehauf de Mexico, S.A. de C.V | *?133.18 |
| Lodi Trailers | *?133.18 |
| Norstar Trailers Mexico S de R.L. de C.V. (d/b/a Iron Bull Trailers) | *?133.18 |
| Semiremolques El Paisano S.A. de C.V | *?133.18 |
| Ventura Trailers | *?133.18 |
| All Others | 133.18 |
| *?Rate based on facts available with adverse inferences. | |
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register . Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above.
Disclosure
Normally, Commerce discloses its calculations performed in connection with the preliminary determination to interested parties within five days of its public announcement, or if there is no public announcement, within five days of the date of publication of the notice, in accordance with 19 CFR 351.224(b). However, because Commerce preliminarily applied facts available with adverse inferences in determining the subsidy rates for HYMEX and the non-responsive companies, and the assigned AFA rates are based on rates calculated in prior proceedings, there are no calculations to disclose.
Verification
Because the examined respondent in this investigation HYMEX did not provide information requested by Commerce and Commerce preliminarily determines HYMEX to have been uncooperative, it will not conduct verification.
Public Comment
Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than 30 days after the date of publication of the preliminary determination. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs. 10 Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities. 11
Footnotes:
10 ? See 19 CFR 351.309(d); see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 2023) ( APO and Service Final Rule ).
11 ? See 19 CFR 351.309(c)(2) and (d)(2).
As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs. 12 Further, we request that interested parties limit their public executive summary of each issue to no more than 450 words, not including citations. We intend to use the public executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final determination in this investigation. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f). 13
Footnotes:
12 ?We use the term "issue" here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum.
13 ? See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce within 30 days after the date of publication of this notice. Requests should contain the party's name, address, and telephone number, the number of participants and whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. 14 Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.
Footnotes:
14 ? See 19 CFR 351.310(d).
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify the ITC of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of chassis from Mexico are materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: July 28, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of chassis and subassemblies thereof, whether finished or unfinished, whether assembled or unassembled, whether coated or uncoated, regardless of the number of axles, for carriage of containers, or other payloads (including self-supporting payloads) for road, marine roll-on/roll-off (RORO) and/or rail transport. Chassis are typically, but are not limited to, rectangular framed trailers with a suspension and axle system, wheels and tires, brakes, a lighting and electrical system, a coupling for towing behind a truck tractor, and a locking system or systems to secure the shipping container or containers to the chassis using twistlocks, slide pins or similar attachment devices to engage the corner fittings on the container or other payload.
Subject merchandise includes, but is not limited to, the following subassemblies:
• Chassis frames, or sections of chassis frames, including kingpin assemblies, bolsters consisting of transverse beams with locking or support mechanisms, goosenecks, drop assemblies, extension mechanisms and/or rear impact guards;
• Running gear assemblies or axle assemblies for connection to the chassis frame, whether fixed in nature or capable of sliding fore and aft or lifting up and lowering down, which may or may not include suspension(s) (mechanical or pneumatic), wheel end components, slack adjusters, dressed axles, brake chambers, locking pins, and tires and wheels; and
• Assemblies that connect to the chassis frame or a section of the chassis frame, such as but not limited to, pintle hooks or B-trains (which include a fifth wheel), which are capable of connecting a chassis to a converter dolly or another chassis.
Importation of any of these subassemblies, whether assembled or unassembled, constitutes an unfinished chassis for purposes of this investigation.
Subject merchandise also includes chassis, whether finished or unfinished, entered with components such as, but not limited to: hub and drum assemblies, brake assemblies (either drum or disc), bare axles, brake chambers, suspensions and suspension components, wheel end components, landing gear legs, spoke or disc wheels, tires, brake control systems, electrical harnesses and lighting systems.
Processing of finished and unfinished chassis and components such as trimming, cutting, grinding, notching, punching, drilling, painting, coating, staining, finishing, assembly, or any other processing either in the country of manufacture of the in-scope product or in a third country does not remove the product from the scope. Inclusion of other components not identified as comprising the finished or unfinished chassis does not remove the product from the scope.
Individual components entered and sold by themselves are not subject to the investigation, but components entered with a finished or unfinished chassis are subject merchandise. A finished chassis is ultimately comprised of several different types of subassemblies. Within each subassembly there are numerous components that comprise a given subassembly.
This scope excludes dry van trailers, refrigerated van trailers and flatbed trailers. Dry van trailers are trailers with a wholly enclosed cargo space comprised of fixed sides, nose, floor and roof, with articulated panels (doors) across the rear and occasionally at selected places on the sides, with the cargo space being permanently incorporated in the trailer itself. Refrigerated van trailers are trailers with a wholly enclosed cargo space comprised of fixed sides, nose, floor and roof, with articulated panels (doors) across the rear and occasionally at selected places on the sides, with the cargo space being permanently incorporated in the trailer and being insulated, possessing specific thermal properties intended for use with self-contained refrigeration systems. Flatbed (or platform) trailers consist of load carrying main frames and a solid, flat or stepped loading deck or floor permanently incorporated with and supported by frame rails and cross members.
The finished and unfinished chassis subject to this investigation are typically classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 and 8716.90.5060. Imports of finished and unfinished chassis may also enter under HTSUS subheading 8716.90.5010. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of Mexico's Economy
V. Use Of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Recommendation
[FR Doc. 2025-14638 Filed 7-31-25; 8:45 am]
BILLING CODE 3510-DS-P