U.S. International Trade Commission Determines That Chinese Imports Harm American Low-Speed Manufacturing Sector
The U.S. International Trade Commission (USITC) has made an affirmative preliminary injury determination regarding imports of low-speed vehicles, personal transportation vehicles, lightweight utility vehicles, and golf cars from China. This decision comes in response to petitions filed by the American Personal Transportation Vehicle Manufacturers Coalition, which includes Club Car, LLC and Textron Specialized Vehicles Inc.
The petitions allege that Chinese imports are unfairly dumped and subsidized, causing injury to the domestic industry. The alleged dumping margins for Chinese LSPTV imports are as high as 478.09%. Commerce is examining at least 48 subsidy programs in China, including tax breaks, grants, and discounted inputs like steel, aluminum, and lithium batteries.
If both agencies reach affirmative final determinations, AD and CVD orders on LSPTVs from China will be issued, imposing duties for a minimum of five years. The U.S. Department of Commerce has initiated antidumping (AD) and countervailing duty (CVD) investigations into imports of LSPTVs from China.
Mark Wagner, president and CEO of Club Car, LLC, expressed that fair competition is essential for customers to continue benefiting from the industry's commitment to safety, quality, and innovation. He emphasized that ensuring a level playing field for all is more important than inaction. Wagner's sentiments were echoed by Rob Scholl, president and CEO of Textron Specialized Vehicles Inc., who stated that today's finding is an important step in protecting the careers of thousands of people who design, build, sell, and service American-made vehicles.
The Coalition, led by Robert E. DeFrancesco, aims to restore a level playing field in the U.S. industry for the benefit of the domestic industry and their workers. DeFrancesco, a partner in the International Trade Practice at Wiley Rein LLP, stated that U.S. producers of these vehicles and their employees are suffering due to the imports from China.
The Commission's ruling is critical, according to Mark Wagner, as ensuring a level playing field for all is more important than inaction. Duty evasion, absorption, and circumvention are strictly illegal. Commerce is expected to issue its preliminary CVD determination in September 2024 and its preliminary AD determination in December 2024, unless extended.
The Wiley team representing the Coalition includes Derick G. Holt, Greta M. Peisch, Theodore P. Brackemyre, Jacob Garten, Stephen A. Morrison, Patrick Griffo, Amy E. Sherman, and Benjamin A. Luberda. The search results do not specify which companies manufacturing China-produced Low-Speed Personal Transportation Vehicles (LSPTVs) are affected by the USITC investigations. However, the decision affects the entire industry, and the potential for duties could significantly impact the market.
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