Tariffs & HTS
U.S. sets final CVD rates on Indian freight rail couplers
Commerce made a final affirmative determination that producers and exporters of certain freight rail couplers and parts from India receive countervailable subsidies; the period of investigation is April 1, 2024, to March 31, 2025. Final rates are 9.71% for Kharagpur Metal Reforming Industries and all others, and 75.00% for Texmaco, Bhilai Engineering and Jupiter Wagons. CVD deposits at these rates would start only after an affirmative ITC vote and an order.
What changed
The 75.00% rates rest on adverse facts available; Commerce did not complete its verification of Texmaco.
After the March 3, 2026 preliminary determination, Commerce instructed CBP to collect cash deposits and suspend liquidation, but provisional measures lapsed: entries made on or after July 1, 2026 are no longer suspended, while entries from March 3 through June 30, 2026 stay suspended.
If the ITC makes a final affirmative injury determination, due within 45 days, Commerce will issue a CVD order, reinstate suspension and require deposits at these rates; if it finds no injury, the case ends and deposits are refunded.
The scope covers AAR E, E/F and F coupler bodies and E and F knuckles, finished or not and even on railcars, with origin where the parts were cast or forged.
Named HTSUS lines are 8607.30.1010, 8607.30.1050 and 8607.30.1090, plus 7326.90.8688, 8606.10.0000, 8606.91.0000, 8606.92.0000, 8606.99.0130, 8606.99.0160 and 7325.99.5000.
What an import team should check
- Separate Indian coupler entries made from March 3 through June 30, 2026, which stay suspended under the CVD case, from entries made on or after July 1, 2026, which are not.
- Match producers and exporters on invoices to Kharagpur, Texmaco, Bhilai Engineering or Jupiter Wagons; any other supplier would take the 9.71% all-others rate under an order.
- Set a reminder for the ITC injury decision due within 45 days, and ask your broker when CBP would restart CVD deposits if a countervailing duty order is issued.