United States Launches Antidumping Duty and Countervailing Duty Investigations: Certain Chassis and Subassemblies Thereof from Mexico, Thailand and Vietnam | BakerHostetler

Key Takeaways:

• On February 26, 2025, the U.S. producers of chassis requested the relevant U.S. government agencies to conduct investigations to impose antidumping and countervailing duties on imports of chassis and subassemblies from Mexico, Thailand and Vietnam.
• Mexico imports are alleged to be dumped at a margin of 32.37%; Thailand at 234.06%; and Vietnam at 304.68%. Imports from Mexico and Thailand are also alleged to be unfairly subsidized by their respective governments.
• The U.S. Department of Commerce and the U.S. International Trade Commission are expected to initiate formal investigations of imports from the three countries by March 18, 2025. The investigations typically last over one year and could result in duties being imposed on imports from the subject countries.

On Feb. 26, the U.S. Chassis Manufacturers Coalition (the Coalition or Petitioner, consisting of Cheetah Chassis Corp. and Stoughton Trailers LLC) filed petitions with the U.S. International Trade Commission and the U.S. Department of Commerce seeking antidumping and countervailing duty investigations of Certain Chassis and Subassemblies Thereof (chassis and subassemblies, or subject merchandise) from Mexico, Thailand and Vietnam. A description of the merchandise covered by these investigations is included below.

Dumping occurs when a foreign company sells a product in the United States at less than its “normal value,” as determined by the foreign company’s sales in its home market or a comparison market, or sells below the cost of production. The percentage difference between this normal value and the price in the United States is called the dumping margin. Petitioner alleges that duties should be imposed to offset an alleged dumping margin of 32.37 percent for imports of subject merchandise from Mexico, an alleged dumping margin of 234.06 percent for imports from Thailand and an alleged dumping margin of 304.68 percent for imports from Vietnam.

Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or export of goods and are specific to the exporter or industry (countervailable subsidies). These subsidies may be in the form of discounted loans, tax breaks, direct grants, energy credits, low-cost rent, etc.Petitioner alleges that producers and exporters of subject merchandise from Mexico and Thailand benefited from multiple subsidy programs.

These investigations involve two separate parts: an evaluation by the International Trade Commission of whether U.S. producers of chassis and subassemblies are being injured or threatened with injury by reason of the allegedly dumped or subsidized imports, and a calculation by the U.S. Department of Commerce of the dumping margins of individual exporters of chassis and subassemblies from Mexico, Thailand and Vietnam.

The International Trade Commission has initiated its investigation into injury. It will have 45 days to make its preliminary injury determination – that is, until April 11. Importers, producers and exporters can participate in the International Trade Commission’s evaluation of whether chassis and subassemblies from Mexico, Thailand and Vietnam are injuring the U.S. domestic industry by completing and returning a questionnaire response about production, imports and sales of subject merchandise. Questionnaires are being issued and are likely due March 12. Importers, producers and exporters may dispute the allegations that imports are injuring the U.S. industry. The preliminary hearing at the International Trade Commission likely will be scheduled for March 19 in Washington, D.C.

The U.S. Department of Commerce will evaluate the petitions to determine whether they contain allegations and evidence that is reasonably available to the Petitioner indicating that chassis and subassemblies sold to the United States from Mexico, Thailand and Vietnam are dumped. If the U.S. Department of Commerce determines that the petition is sufficient, it will initiate its investigations into subsidies in 20 days – that is, by March 18.

BakerHostetler provides the legal guidance necessary to defend foreign producers, foreign exporters and U.S. importers in injury proceedings before the International Trade Commission, and to defend foreign producers and foreign exporters in the investigations conducted by the U.S. Department of Commerce. We have assisted many companies remain competitive in the U.S. market, and have even completely defeated duties, through successful defense of their business. BakerHostetler also assists U.S. importers (those that are ultimately liable for paying the increased import duties) and foreign governments in defending their interests in antidumping and countervailing duty proceedings. We invite you to contact us today: Michael Snarr, msnarr@bakerlaw.com, +1.202.861.1710.

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Certain Chassis and Assemblies Thereof

The merchandise subject to this investigation is certain chassis and assemblies thereof. Chassis subject to this investigation are 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.

The chassis and assemblies thereof subject to this investigation remain covered by the scope of this investigation 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 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 also includes chassis, whether finished or unfinished, entered with or for further assembly with components such as, but not limited to, hub and drum assemblies, brake assemblies (either drum or disc), dressed 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, assembling, 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 investigations, but components entered with or for further assembly with a finished or unfinished chassis are subject merchandise. A finished chassis ultimately comprises several different types of subassemblies. Within each subassembly there are numerous components that comprise a given subassembly.

Excluded from the scope of this investigation are dry van trailers, refrigerated van trailers and flatbed trailers. Dry van trailers are trailers with a wholly enclosed cargo space comprising 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 comprising 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 these investigations 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.

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