Freight Rail Coupler Systems and Components from China Do Not Injure U.S. Industry, says USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of freight rail coupler systems and components from China that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the United States at less than fair value.

Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the negative. 

As a result of the Commission’s negative determinations, Commerce will not issue antidumping duty and countervailing duty orders on imports of these products from China.

The Commission’s public report Freight Rail Coupler Systems and Components from China (Inv. Nos. 701-TA-670 and 731-TA-1570 (Final), USITC Publication 5331, July 2022) will contain the views of the Commission and information developed during the investigations.

The report will be available by July 21, 2022; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Freight rail coupler systems and components from China
Investigation Nos: 701-TA-670 and 731-TA-1570 (Final)

Product Description:  Freight rail coupler systems and components ("FRC") are metal structures used to connect freight rail cars together. FRC are comprised of a system of four main metal components: knuckles, coupler bodies, coupler yokes, and follower blocks. Knuckles are typically metal castings in the shape of a hook that pivot on a vertical hinge between a "locked" and an "unlocked" position to allow for interlocking with knuckles of adjacent FRC. Coupler bodies are a metal casting that hold the knuckle and allow it to pivot. The coupler body fits within the coupler yoke, which is a metal casting that attaches the FRC to a freight car. The follower block is a rectangular piece of metal that separates the FRC with the adjacent draft gear of a freight car (designed to absorb some of the forces when connecting freight rail cars). FRC are designed to connect two freight cars together by automatically interlocking the knuckles of both FRC when the freight cars are pushed together.

Status of Proceedings:

1. Type of investigation:  Final countervailing duty and antidumping duty investigations.
2. Petitioners:  McConway and Torley, LLC, Pittsburgh, Pennsylvania; United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC, Pittsburgh, Pennsylvania
3. USITC Institution Date:  Wednesday, September 29, 2021
4. USITC Hearing Date:  Thursday, May 12, 2022
5. USITC Vote Date:  Tuesday, June 14, 2022
6. USITC Notification to Commerce Date:  Tuesday, July 5, 2022

U.S. Industry in 2021:

1. Number of U.S. producers:  3
2. Location of producers’ plants:  Illinois, Michigan, and Pennsylvania
3. Production and related workers:  ¹
4. U.S. producers’ U.S. shipments:  ¹
5. Apparent U.S. consumption:  ¹
6. Ratio of subject imports to apparent U.S. consumption:  ¹

U.S. Shipments of Imports in 2021:

1. Subject imports:  15.3 million pounds
2. Nonsubject imports:  ¹
3. Leading import sources:  China and Mexico