Meanwhile, the U.S. said in April that U.S.-based manufacturers of intermodal chassis were materially injured by imports of chassis and subassemblies from Mexico, Thailand and Vietnam. (shaunl/Getty Images)
A Canada Border Services Agency investigation into container chassis imports from Vietnam found no circumvention of a 2022 Canadian International Trade Tribunal ruling, according to a final assessment.
The assessment confirmed an April 9 preliminary ruling by the CBSA, which took into account comments and responses submitted by the main parties to the ruling: manufacturer Thaco Special Vehicles Manufacturing, importer Ocean Trailer and complainant Max-Atlas International.
Canadian chassis manufacturer Max-Atlas filed an October 2024 complaint alleging components — including subassemblies and steel — originating in China were being used to assemble or complete chassis in Vietnam, potentially avoiding duties applied under the Special Import Measures Act.
The investigation related to a probe that started in June 2021 and led to a January 2022 CBSA determination on Chinese container chassis dumping and subsidizing.
In February 2022, CITT found that the dumping and subsidizing caused injury to the Canadian companies, and the CBSA started collecting tariffs on imports of Chinese chassis.
Circumvention would have required a change in the pattern of trade after a SIMA investigation.
(Marvin Samuel Tolentino Pineda/Getty Images)
CBSA launched the probe Nov. 25 into whether Thaco was circumventing the 2022 CITT finding on the dumping and subsidizing of container chassis from China.
The agency carried out an on-site verification at Thaco premises in Vietnam in March. CBSA found the percentage of Chinese parts or components were not a major portion of those needed for the chassis.
In the April 9 finding, the Statement of Essential Facts, the agency also verified Thaco performed fabrication of steel workpieces and main beams, welding, shot blasting, electrophoretic dipping, painting and assembly in Vietnam.
The chassis were being imported by Delta, British Columbia-based Ocean Trailer before the probe beginning.
Disagreement With the CBSA
In response to the preliminary finding, Max-Atlas said it disagreed with the CBSA’s preliminary assessment and submitted comments alleging deficiencies in Thaco’s submissions.
Max-Atlas warned the agency of costing issues, as well as errors and inconsistencies in appendices, according to the final assessment.
The chassis manufacturer requested that CBSA revisit its reliance on Thaco’s cost data. It also alleged a lack of clarity and transparency, “claiming that the CBSA failed to disclose critical calculation details, hindering their ability to evaluate and respond effectively to the findings.”
Thaco, in response, said Max-Atlas’ allegations were nonspecific and unsubstantiated. Winnipeg, Manitoba-based customs broker Otimo Customs also argued the allegations were unsubstantiated.
Ocean Trailer Chief Operations Officer Mack Keay told Transport Topics on May 23 that the company halted all Thaco chassis orders when the CBSA investigation began.
Primarily a trailer rental company, with more than 8,000 trailers, Ocean Trailer only sells Thaco container chassis.
“We are very pleased with the CBSA’s decision and are eager to move forward, continuing to supply high-quality chassis to our Canadian customers,” Keay said in an email.
“We conducted thorough due diligence before partnering with Thaco, including visiting their manufacturing facilities in Vietnam. This gave us confidence from the outset that we would be cleared of any wrongdoing. However, the six-month suspension of chassis sales was challenging for our business,” Keay added.
Max-Atlas did not respond to multiple requests for comment.
Canada’s Container Chassis Import Breakdown
Around 34% of Canadian container chassis imports were from Vietnam in 2023, compared with 0% in the final quarter of 2020 and all of 2021 and 2022, according to CBSA data. Imports from Vietnam accounted for 4% of the total in the first three quarters of 2024.
Container chassis imports from China accounted for 1% of the total in the first three quarters of 2024 and 3% in 2023, having been responsible for 36%, 49% and 34%, respectively, in Q4 2020, 2021 and 2022.
The value of the Canadian market for container chassis is estimated at $140 million per year.
Meanwhile, the U.S. International Trade Commission said in April that U.S.-based manufacturers of intermodal chassis were materially injured by imports of chassis and subassemblies from Mexico, Thailand and Vietnam.
Robert Brown of Bot Auto breaks down the state of autonomous trucking today, and where it’s headed. Tune in above or by going to RoadSigns.ttnews.com.
A coalition in February accused manufacturers in the three countries of selling their products at below-market prices and receiving anticompetitive government support. In a preliminary finding issued April 14, ITC decided there were reasonable indications to support such allegations.
Complaints were made to both ITC and the Department of Commerce.
Commerce investigates whether producers or exporters were dumping and/or receiving unfair subsidies, while the ITC investigates whether the domestic industry is injured or if a threat of injury exists because of the potentially dumped or subsidized imports.
On April 25, Commerce said it was postponing its preliminary countervailing determination until July 28 at the latest because the coalition — led by Stoughton Trailers and Cheetah Chassis Corp. — on April 22 asked for the agency to be given more time to review responses and comments.
A decision from Commerce’s Office of Enforcement and Compliance on the countervailing duties complaint against Mexican and Thai exporters had originally been due by May 22. A preliminary determination on the antidumping complaint against Mexican, Thai and Vietnamese exporters is due by Aug. 5.
The final determination on the petition is not expected until early in 2026.
