New Scope Ruling Says a Few of Thai Exporter’s Wheels Not Subject to Chinese AD/CVD

The Commerce Department said in a new scope ruling Feb. 9 that some of exporter Asia Wheel’s 22.5 to 24.5 inch diameter steel wheels -- those with rims and discs made in Thailand or a third country out of inputs from China -- are not covered by AD/CVD orders on steel wheels from China.

The exporter’s wheels have two primary components: rims and discs. Asia Wheel employs several methods of procuring or producing rims and discs for its wheels, the exporter has said (see 2312010047). Some of its wheels are made from Thai- or third country-origin discs and Thai rims made with steel sourced from China. Others are manufactured using Thai rims, again made from Chinese steel, and Chinese discs; this latter method has been found by Commerce to produce wheels covered by the AD/CVD order, and is the subject of ongoing litigation (see 2308110057).

In its Feb. 9 scope ruling, Commerce said that the exporter’s wheels, when made of rims and discs that are both manufactured in Thailand or elsewhere out of steel from China, weren't covered by AD/CVD. It said it didn't have to apply a substantial transformation analysis because, in this situation, it found the plain language of the scope orders to be enough.

“The record shows that Asia Wheel’s steel truck wheels themselves, as well as their primary rim and disc component parts, are all produced in Thailand,” it said.

It noted that it had reached similar determinations in various scope rulings regarding Asia Wheel’s trailer wheels, as “the major difference between the products is that the steel wheels in Trailer Wheel I were of a smaller diameter and have a different end use.” Like the other manufacturing methods for the exporter’s 22.5 to 24.5 inch diameter wheels, these trailer wheels are also the subject of ongoing litigation (see 2306080059).