91 FR 48367 · published 2026-07-31
· Commerce Department, International Trade Administration
Mirrored from the Federal Register (retrieved 2026-08-08) —
the official copy is at federalregister.gov
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The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of truck bed covers from the People's Republic of China (China). The period of investigation (POI) is January 1, 2025, through December 31, 2025. Interested parties are invited to comment on this preliminary determination.
[Federal Register Volume 91, Number 146 (Friday, July 31, 2026)]
[Notices]
[Pages 48367-48369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-15559]
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-224]
Truck Bed Covers From China: Preliminary Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of truck bed covers from the People's Republic
of China (China). The period of investigation (POI) is January 1, 2025,
through December 31, 2025. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable July 31, 2026.
FOR FURTHER INFORMATION CONTACT: Suresh Maniam and Dusten Hom, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0176 and (202) 482-5075,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On March 20,
2026, Commerce published the notice of initiation of this
countervailing duty investigation in the Federal Register.\1\ On May 6,
2026, Commerce postponed the preliminary determination until July 27,
2026.\2\
\1\ See Truck Bed Covers from the People's Republic of China:
Initiation of Countervailing Duty Investigation, 91 FR 13573
(January 26, 2026) (Initiation Notice).
\2\ See Truck Bed Covers from the People's Republic of China:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 91 FR 24511 (May 6, 2026).
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System, which is available to registered
users at https://access.trade.gov. In addition, a complete version of
the Preliminary Decision Memorandum can be accessed at https://access.trade.gov/frnotices.
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of Truck Bed Covers from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
Scope of the Investigation
The product covered by this investigation is truck bed covers from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the less-than-fair-
value (LTFV) and CVD investigations on or before the preliminary
determination in the companion LTFV investigation.
\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice.
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\6\
\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
Commerce notes that, in making these findings, it relied on facts
available and, because it finds that one or more respondents did not
act to the best of their ability to respond to Commerce's requests for
information, it drew an adverse inference where appropriate in
selecting from among the facts otherwise available.\7\ For further
information, see the ``Use of Facts Otherwise Available and Adverse
Inferences'' section in the Preliminary Decision Memorandum.
\7\ See sections 776(a) and (b) of the Act.
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for the mandatory respondents that are
not zero, de minimis, or based entirely on facts otherwise available.
Commerce calculated the all-others rate using a weighted average of the
individual estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged values for the
merchandise under consideration.\8\
\8\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see the Calculation of Subsidy Rate for All Others Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
Subsidy rate
Company (percent ad valorem)
Changzhou Sunwood International Trading Co., Ltd.. 30.38
Hangzhou Golden Sun Auto Parts Co., Ltd........... 8.72
Century Distribution Systems (Shenzhen) Ltd....... * 100.95
Foshan Baitai Auto Accessories Co................. * 100.95
Shenzhen Haishang Wanyun Supply Chain Management * 100.95
Co., Ltd.........................................
Shenzhen Longhua Supply Chain Co., Ltd............ * 100.95
Shenzhen Maichuang International.................. * 100.95
Shenzhen Qianhai Yahee E-Commerce Co., Ltd........ * 100.95
All Others........................................ 20.25
* Rate is based on facts available with adverse inferences.
Suspension of Liquidation
In accordance with section 703(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise as described in the scope of the
investigation section entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register. Further, pursuant to section 703(d)(1)(B) of the Act
and 19 CFR 351.107(e), Commerce will CBP to require a cash deposit
equal to the estimated company-specific countervailable subsidy rate or
the estimated all-others rate, as follows: (1) the cash deposit rate
for the respondents listed above will be equal to the company-specific
estimated individual countervailable subsidy rates determined in this
preliminary determination; (2) if both the producer and exporter of the
subject merchandise have company-specific estimated subsidy rates
determined in this preliminary determination, and their rates differ,
then the applicable cash deposit rate will be the higher of these two
rates; (3) if either the producer or the exporter, but not both, of the
subject merchandise have a company-specific estimated subsidy rate
determined in this preliminary determination, the applicable cash
deposit rate will be that company's company-specific rate; and (4) the
cash deposit rate for all other producers and exporters will be equal
to the estimated all-others subsidy rate.
Disclosure
Commerce intends to disclose its calculations performed to
interested parties in this preliminary determination within five days
of its public announcement, or if there is no public announcement,
within five days of the date of this notice in accordance with 19 CFR
351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the LTFV and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum to be issued with the LTFV investigation
preliminary determination. For all scope case and rebuttal briefs,
parties must file identical documents simultaneously on the records of
the ongoing LTFV and CVD truck bed covers investigations. No new
factual information or business proprietary information may be included
in either scope case or rebuttal briefs.
Non-scope related case briefs or other written comments may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this
investigation. Rebuttal briefs, limited to issues raised in the case
briefs, may be filed not later than five days after the date for filing
case briefs.\9\ Interested parties who submit case or rebuttal briefs
in this proceeding must submit: (1) a table of contents listing each
issue; and (2) a table of authorities.\10\
\9\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\10\ See 19 CFR 351.309(c)(2) and (d)(2).
As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we
request that interested parties provide at the beginning of their
briefs a public, executive summary for each issue raised in their
briefs.\11\ Further, we request that interested parties limit their
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public executive summaries as
the basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the public executive summary of each issue. Note
that Commerce has amended certain of its requirements pertaining to the
service of documents in 19 CFR 351.303(f).\12\
\11\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\12\ See APO and Service Final Rule.
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain:
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of the issues to be discussed. If a request for a hearing is
made, Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the ITC of its determination. If the final determination is
affirmative, the ITC will determine, before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination, whether imports of truck bed covers from China are
materially injuring the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: July 27, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of the investigation covers truck bed covers, which
are protective shields made of aluminum, steel, fiberglass, carbon
fiber, plastic, and/or water-resistant fabric that are sized to span
the open-top area of a pickup truck. When fully assembled and
installed, truck bed covers have a width between 45 and 75 inches
(actual) and a length between 55 and 100 inches (actual), and can be
used to secure the cargo area of a pickup truck and/or repel water.
Truck bed covers typically encompass four general
configurations--i.e., folding, roll-up, one-piece, and retractable.
Folding truck bed covers consist of two or more interconnected,
hinged panels which may be made from a rigid material or a soft
material with a rigid frame. Roll-up truck bed covers can be made of
soft material with rigid crossbars, or rigid material such as slats,
which allow the cover to roll forward for access to the truck bed,
and which can be secured with straps, buckles, or other fasteners.
One-piece truck bed covers are rigid covers that open from the
tailgate end of the truck bed using a hinge or pivot, typically with
the assistance of struts for opening and closing. Retractable truck
bed covers are made of interconnected rigid slats or one-piece
aluminum-reinforced polycarbonate that retract into a recessed
canister to allow access to the truck bed. Retractable truck bed
covers may be manually operated or electrically powered with a
motor, and electric models may include additional features such as
fob keys, Bluetooth connectivity, or LED lights.
The scope of the investigation includes not only the cover
material (i.e., the protective shield made of aluminum, steel,
fiberglass, carbon fiber, plastic, and/or water-resistant fabric),
but also any accompanying hardware for the mounting or storage of
the truck bed cover (e.g., rails, canisters, latches, straps,
clasps, clamps, nuts, bolts, washers, screws, hitch pins, weather
strips/seals/gaskets) or other parts (e.g., locks, struts, drain
tubes, motors), provided that such hardware or other parts are
entered with and invoiced with the cover material. Truck bed covers
are included within the scope whether or not they are accompanied
with such hardware or other parts. Moreover, any hardware for the
mounting or storage of the truck bed cover (e.g., rails, canisters,
latches, straps, clasps, clamps, nuts, bolts, washers, screws, hitch
pins, weather strips/seals/gaskets) or other parts (e.g., locks,
struts, drain tubes, motors) are covered within the scope if such
items are separately entered as a truck bed cover mounting or
installation kit.
Excluded from the scope are truck caps (also known as camper
shells, toppers, or canopies), which are enclosures that can be
mounted on truck bed rails to extend the height of a truck bed by at
least 12 inches (actual), thus creating a fully-enclosed, lockable
storage area for cargo.
Also excluded from the scope of the investigation are any
products already covered by the scope of any extant antidumping and/
or countervailing duty orders, including Aluminum Extrusions from
the People's Republic of China: Antidumping Duty Order, 76 FR 30650
(May 26, 2011), and Aluminum Extrusions from the People's Republic
of China: Countervailing Duty Order, 76 FR 30653 (May 26, 2011).
The products subject to the investigation are currently
classifiable under subheading 8708.29.5160 of the Harmonized Tariff
Schedule of the United States (HTSUS). Although the HTSUS subheading
is provided for convenience and customs purposes, the written
description of the scope of the investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of China's Economy
V. Analysis of China's Financial System
VI. Use of Facts Available and Adverse Inferences
VII. Subsidies Valuation Information
VIII. Interest Rates and Benchmarks
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2026-15559 Filed 7-30-26; 8:45 am]
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