U.S. Commerce Preliminary Brake Drum Duty Decision

The U.S. Department of Commerce has announced a preliminary affirmative determination in the countervailing duty investigation concerning certain brake drums from the Republic of Türkiye. The initial findings indicate that countervailable subsidies have been provided to producers and exporters in Türkiye. This investigation covers the period from January 1, 2023, to December 31, 2023. Stakeholders are invited to comment on the preliminary findings.

Key Highlights:

The preliminary determination reveals that subsidies were provided to specific brake drum manufacturers in Türkiye.
The final determination will align with the concurrent antidumping investigation.
The scope of the investigation includes brake drums made of gray cast iron, both finished and unfinished.
The period for public comments and rebuttals is open, and interested parties can submit scope-related comments.

Scope of the Investigation

The investigation covers certain brake drums made of gray cast iron originating from Türkiye. These drums have an inside diameter ranging from 14.75 inches to 16.6 inches and weigh more than 50 pounds. This includes both finished and unfinished drums, regardless of whether they are imported individually or as part of an assembly. Composite brake drums containing more than 40% steel by weight are excluded from this investigation. Further details can be found in Appendix I of the notice.

Methodology Used

The investigation is being conducted under section 701 of the Tariff Act of 1930. For each subsidy program deemed countervailable, Commerce preliminarily determines that the subsidy provides a specific benefit to recipients, meeting the criteria under the Tariff Act. Due to the lack of cooperation from some entities, Commerce used adverse inferences in the calculation process.

Companies and Rates

The U.S. Department of Commerce has preliminarily assigned the following subsidy rates:

EKU Fren ve Dok. San. A.S.: 0.89% (de minimis).
Akkus Dokum San.Ve Tic.Ltd.Sti, Buyuk Eker Bijon Sanayi Ve Ticaret, and Genk Otomotiv San.Dis Tic.Ltd.Sti: 131.39% (based on adverse inferences).
All Others: 98.77%.

Alignment with Antidumping Investigation

Commerce is aligning the final countervailing duty (CVD) determination with the final antidumping (AD) determination in the concurrent investigation of brake drums from Türkiye. The final determinations are expected by April 8, 2025, unless postponed.

Suspension of Liquidation

With the exception of entries from EKU, Commerce has directed the U.S. Customs and Border Protection (CBP) to suspend liquidation of entries from Türkiye starting from the publication date of this notice. Additionally, a cash deposit equal to the applicable rates must be made for these entries.

Verification and Public Comment

Commerce plans to verify the information submitted and has opened a window for public comments. Interested parties may submit their views on the preliminary determination, including scope and non-scope issues, and may also request a hearing.

The U.S. International Trade Commission (ITC) will be notified of Commerce’s determination, and a final injury determination will be made to decide if these brake drums threaten or injure U.S. industry.

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