China Car and Truck Tires: AD Rates Drop in Final Determination
The Commerce Department issued its final determination in the antidumping duty investigation on passenger vehicle and light truck tires from China (A-570-062) (here). Commerce lowered AD rates for many exporters, and reinstated marking requirements for one exemption from duties. The final determination is effective June 18.
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The next step is for the International Trade Commission to make its final injury determination, currently scheduled for July 27. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.
Commerce also issued its final determination in the concurrent countervailing duty investigation on passenger vehicle and light truck tires from China (see 1506170016).
Changes to Scope Exemption
Commerce made changes to an exemption to AD/CV duties on passenger vehicle and light truck tires from China for specialty tires. The agency is reinstating a requirement that, to qualify for the exemption, the load index molded on the tire’s sidewall must meet or exceed load indexes listed in the Tire and Rim Association Year Book for the relevant ST tire size. It is also reinstating and amending a second requirement for the specialty tire exemption so that, in order to qualify, either the tire's speed rating molded on the sidewall does not exist 81 MPH or an "M" rating, or:
"The tire’s speed rating molded on the sidewall is 87 MPH or an “N” rating, and in either case the tire’s maximum pressure and maximum load limit are molded on the sidewall and either (1) both exceed the maximum pressure and maximum load limit for any tire of the same size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book; or (2) if the maximum cold inflation pressure molded on the tire is less than any cold inflation pressure listed for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book, the maximum load limit molded on the tire is higher than the maximum load limit listed at that cold inflation pressure for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book."
Suspension of Liquidation Still Retroactive 90 Days for Some Companies
Commerce continued to find "critical circumstances" for companies in the China-wide entity (i.e., all companies except GITI, Sailun, and the 65 exporters that got an average "separate rate, including Cooper Tire"), because these companies allegedly increased sales of subject merchandise in the U.S. during the run-up to the preliminary determination in an attempt to get in as much product as possible before duties were imposed. As such, it will order CBP to continue to suspend liquidation for all subject merchandise for the China-wide companies entered on or after Oct. 29, the date 90 days prior to the preliminary determination. Liquidation is still suspended for GITI, Sailun, and the 65 separate rate companies for entries on or after Jan. 27.
AD Cash Deposit Rates
Commerce will instruct CBP to require an AD cash deposit for all imports of subject merchandise from China equal to the following AD rates (as adjusted for export subsidies found in Commerce's concurrent final countervailing duty determination):
| Exporter | Producer | AD Rate (adjusted) |
|---|---|---|
| Giti Tire Global Trading Pte. Ltd. / Giti Tire (USA) Ltd. / Giti Tire (Anhui) Company Ltd. / Giti Tire (Fujian) Company Ltd. / Giti Tire (Hualin) Company Ltd. | Giti Tire (Anhui) Company Ltd. / Giti Tire (Fujian) Company Ltd. / Giti Tire (Hualin) Company Ltd. | 14.54% (from 18.72%) |
| Sailun Group Co., Ltd. / Sailun Tire International Corp. / Shandong Jinyu Industrial Co., Ltd. / Jinyu International Holding Co., Limited / Seatex International Inc. / Dynamic Tire Corp. / Husky Tire Corp. / Seatex PTE. Ltd. | Sailun Group Co., Ltd. / Shandong Jinyu Industrial Co., Ltd | zero (from 29.01%)† |
| Average rate (applicable to 64 exporters, but only for merchandise from certain producers) | 8.18% (from 20.47%) | |
| Cooper Tire & Rubber Company | Cooper Chengshan (Shandong) Tire Co., Ltd. Cooper (Kunshan) Tire Co., Ltd. | 10.58% (from 20.47%) |
| China-wide entity* | 76.46% (from 110.25%) |
*Comprising all Chinese exporter-producer combinations not listed above, including all subject merchandise exported by Yongsheng Rubber Group Co., Ltd.
†Although Sailun's adjusted cash deposit rate is zero, it's unadjusted dumping margin is 14.35%, so it would remain subject to any AD duty order issued in connection with this investigation.
AC/CVD Operations contact -- Toni Page (202) 482-1398
(The period of investigation is 07/01/13 -- 12/31/13. See Commerce’s notice for more information, including the scope of the investigation (unchanged since the preliminary determination), detailed instructions on cash deposit and assessment rates, etc.)
(Federal Register 06/18/15)