China Car and Truck Tires: Prelim CV Cash Deposit Rates Take Effect, Retroactive for Some
A countervailing duty cash deposit requirement will take effect Dec. 1 for imports of passenger vehicle and light truck tires from China (C-570-017), as the Commerce Department found illegal subsidization of Chinese producers in its preliminary determination (here). Commerce is making the suspension of liquidation and CV duty cash deposits retroactive for subject merchandise from all Chinese companies except GITI Tire and Cooper entered on or after Sept. 2.
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Commerce is also considering the imposition of antidumping duties on tires from China. The agency's preliminary AD duty determination is currently due Jan. 20 (see 14100809).
Commerce Finds Critical Circumstances; Cash Deposits Retroactive 90 Days
Commerce made a finding that all Chinese companies except GITI Tire and Cooper increased their tire exports to the U.S. in the run up to the preliminary determination, in an attempt to get in as much product as possible before the imposition of CV duties. This "critical circumstances" finding by the agency allows it to retroactively suspend liquidation for these companies back to 90 days before the preliminary determination, i.e. Sept. 2.
CV Suspension of Liquidation and Cash Deposit Requirements
Commerce says it will instruct CBP to suspend liquidation for all entries of subject merchandise from China that are entered, or withdrawn from warehouse, for consumption on or after Sept. 2, except for subject merchandise exported by GITI Tire and Cooper. For those two companies, suspension of liquidation will take effect for entries on or after Dec. 1. Preliminary CV cash deposit rates will be required as follows:
| Company | Prelim CV Rate |
|---|---|
| GITI Tire (Fujian) Co., Ltd.* | 17.69% |
| Cooper Kunshan Tire Co., Ltd.† | 12.5% |
| Shandong Yongsheng Rubber Group Co., Ltd. | 81.29% |
| All other companies | 15.69% |
*Also includes affiliates GITI Tire (China) Investment Company Ltd., GITI Radial Tire (Anhui) Company Ltd., GITI Tire (Hualin) Company Ltd., GITI Steel Cord (Hubei) Company Ltd., and Anhui Prime Cord Fabrics Company Ltd.
†Also includes affiliate Cooper Chengshan (Shandong) Tire Co., Ltd.
(The period of investigation is 01/01/13 - 12/31/13. See Commerce's notice for more information, including the scope (unchanged since initiation), suspension of liquidation, etc. See 14071811 for summary of the initiation of this CV duty investigation, and 14060402 for summary of the underlying petition.)
AD/CVD Operations contact -- Toni Page (202) 482-1398
(Federal Register 01/27/14)