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Domestic Manufacturer Asks for Duties on 53-Foot Intermodal Shipping Containers From China

Stoughton Trailers on April 23 filed a request for new antidumping and countervailing duties on “53-foot domestic dry containers” from China (A-570-014/C-570-015). The petition says the duties should cover 53’ and 53’ high cube containers frequently used in intermodal shipping by rail and truck in North America. It says they should not cover 20’ and 40’ containers used in international ocean shipping and trailers with built-in wheels. According to the petition, underselling by Chinese companies has forced Stoughton, a domestic manufacturer, to close its plant in Evansville, Ind. despite strong container demand from shipping companies.

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Stoughton says the 53’ and 53’ high cube containers covered in its request are “specifically designed and used throughout North America in connection with the long distance intermodal movement of freight.” They are made to certain design specifications that allow them to be double stacked on trains and transferred onto a truck. They usually contain goods shipped from a port, manufacturing facility or distribution center, says the petition. Often, they are shipped by rail in stacks of two to a point closer to the destination, then transferred onto a truck for the last leg of the journey. Stoughton says the containers are normally not used as instruments of international traffic (IITs).

Proposed Scope

The petition’s proposed scope of the investigation is as follows:

“The merchandise subject to investigation is durable, reusable, weatherproof, closed (i.e., not open top) van containers exceeding 14.63 meters (48 feet) but generally measuring approximately 16.154 meters (approximately 53 feet) in exterior length, which are designed for the intermodal transport of goods other than bulk liquids within North America primarily by rail or by road vehicle, or by a combination of rail and road vehicle ("domestic containers"). The merchandise is known in the industry by varying terms including ‘53-foot containers,’ ‘53-foot dry containers,’ ‘53-foot domestic dry containers,’ and ‘domestic containers’. These terms all describe the same article with the same design and performance characteristics. Notwithstanding the particular terminology used to describe the merchandise, all merchandise that meets the definition set forth herein is included within the scope of these investigations.

“Domestic containers will generally have the following exterior dimensions: an exterior length exceeding 14.63 meters (48 feet) but generally, approximately 16.15 meters (approximately 53 feet) subject to allowed tolerances; an exterior minimum width of approximately 2.44 meters (approximately 8 feet) subject to allowed tolerances; and an exterior minimum height of approximately 2.74 meters (approximately 9 feet) subject to allowed tolerances. The domestic containers within the scope definition have four upper stacking frame handling fittings and four bottom dual aperture stacking frame handling fittings, placed at the corners of approximately 12.19 meter (approximately 40 foot) stacking frames located equal distant from each end of the container. In addition, the domestic containers have two forward facing fittings at the front lower corners and two downward facing fittings at the rear lower comers to facilitate chassis interface.

“Domestic containers generally meet the characteristics for closed van containers for domestic intermodal service as described in the American Association of Railroads (‘AAR’) Manual of Standards and Recommended Practices Intermodal Equipment Manual Closed Van Containers For Domestic Intermodal Service Specification M 930 Adopted: 1972; Last Revised 2013 (‘AAR Specifications’) for 53-foot and 53-foot high cube containers. The AAR Specifications generally define design, performance and testing requirements for closed van containers, but are not dispositive for purposes of defining subject merchandise within this scope definition. Containers which may not fall precisely within the AAR Specifications or any successor equivalent specifications are included within the scope definition of the subject merchandise if they have the nominal exterior dimensions referenced above, are suitable for use in intermodal transportation, are capable of and suitable for double-stacking in intermodal transportation, and otherwise meet the scope definition for the subject merchandise.

“All domestic containers as described herein are included within this scope definition, regardless of whether the merchandise enters the United States in a final, assembled condition, or as an unassembled kit or substantially complete domestic container which requires additional manipulation or processing after entry into the United States to be made ready for use as domestic container with an exterior length exceeding 14.63 meters (48 feet).

“The scope of the petition excludes the following items: 1) refrigerated containers; 2) trailers, where the cargo box and rear wheeled chassis are of integrated construction, and the cargo box of the unit may not be separated from the chassis for further intermodal transport; 3) twenty foot and forty foot International Standards Organization certified (‘ISO’) containers and domestic containers with a nominal exterior length of approximately 14.63 meters (48 feet); and 4) container chassis for domestic containers within the scope definition, imported with or without the domestic containers (but the containers themselves, if imported with chassis, remain within the scope).

“Imports of the subject merchandise are provided for under subheading 8609.00.00 of the Harmonized Tariff Schedule of the United States (HTSUS). Imports of the subject merchandise which meet the definition of and requirements for "instruments of international traffic" pursuant to 19 U.S.C. §1322 and 19 C.F.R. §10.41a may be classified under subheading 9803.00.50, HTSUS. While HTSUS subheadings are provided for convenience and customs purposes, the written description of the subject merchandise as set forth herein is dispositive.”

Commerce Accepting Comments on Petition Support

The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations on 53-foot domestic dry containers from China. Stoughton says it’s the only domestic manufacturer. Comments are due by about May 13.

Email ITTNews@warren-news.com for a copy of the petition.