WASHINGTON (March 2026) - On March 10, 2026, petitions were filed with the U.S. Department of Commerce requesting an investigation into potential circumvention of the antidumping duty (AD) and countervailing duty (CVD) orders on freight rail couplers (FRCs) from China and Mexico. The antidumping and countervailing duty orders on FRCs from China were published in July 2023. The antidumping order on FRCs from Mexico was published in November 2023. The circumvention inquiry requests were filed by McConway & Torley LLC and include allegations of circumvention involving The Greenbrier Companies, Inc.
Circumvention of AD/CVD orders may occur when exporters alter trade practices to avoid paying duties on goods subject to, or covered by, an existing trade remedy order. The Department of Commerce's Enforcement and Compliance unit within the International Trade Administration is responsible for investigating circumvention inquiries and enforcing U.S. trade law and does so through an impartial, transparent process based on factual evidence provided on the record.
Under U.S. law, Commerce may conduct a circumvention inquiry regarding a party's practices under multiple scenarios, including when evidence suggests that merchandise subject to an existing AD/CVD order is completed, assembled or minorly altered in third countries before entering the United States. Evidence of potential circumvention activities includes a shift in trade patterns, such as those that took place following Commerce's publication of AD and CVD orders of FRCs from China and Mexico in 2023.
"Circumvention of existing AD and CVD orders undermines the effectiveness of U.S. trade laws," said Daniel Pickard, International Trade and National Security practice group leader at Buchanan Ingersoll & Rooney and lead counsel for the petitioners in the original investigation. "The domestic industry is requesting a full and fair investigation into these allegations to uphold the integrity of our trade laws and ensure that duties are properly enforced so that the American industry is able to compete on a level playing field."
The Department of Commerce will determine whether to initiate the investigations within 30 days of the filing (unless extended by up to an additional 30 days). The entire circumvention inquiry will take approximately one year, with a final determinations as to circumvention likely occurring in the first half of 2027.
Buchanan has a team of international trade and national security attorneysready to help U.S. companies with U.S. trade remedy laws and trade policy. U.S. AD/CVD tariff laws are one of the only available tools to reestablish an even playing field for American companies and avoid lost sales and profits. Our eBook, Trade Remedy Investigations Handbook, shares details on how diverse domestic industries can take advantage of antidumping and countervailing duty investigations – and their enforcement – to combat unfair foreign competition and ensure that the U.S. market is operating under fair and equal conditions.