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Passenger Vehicle and Light Truck Tires From the Republic of Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations


American Government

Passenger Vehicle and Light Truck Tires From the Republic of Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations

Joseph A. Laroski Jr.
Department of Commerce
29 June 2020


[Federal Register Volume 85, Number 125 (Monday, June 29, 2020)]
[Notices]
[Pages 38854-38860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13958]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-908, A-583-869, A-549-842, A-552-828]


Passenger Vehicle and Light Truck Tires From the Republic of 
Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam: 
Initiation of Less-Than-Fair-Value Investigations

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

DATES: Applicable June 22, 2020.

FOR FURTHER INFORMATION CONTACT: Alex Villanueva; AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3208.

SUPPLEMENTARY INFORMATION:

The Petitions

    On May 13, 2020, the Department of Commerce (Commerce) received 
antidumping duty (AD) petitions concerning imports of passenger vehicle 
and light truck tires (passenger tires) from the Republic of Korea 
(Korea), Taiwan, Thailand, and the Socialist Republic of Vietnam 
(Vietnam) filed in proper form on behalf of the United Steel, Paper and 
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service 
Workers International Union, AFL-CIO, CLC (the petitioner).\1\ The 
Petitions were accompanied by a countervailing duty (CVD) petition 
concerning imports of passenger tires from Vietnam.\2\
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Passenger Vehicle and Light Truck 
Tires from the Republic of Korea, Taiwan, Thailand, and the 
Socialist Republic of Vietnam--Petition for the Imposition of 
Antidumping and Countervailing Duties,'' dated May 13, 2020 (the 
Petitions).
    \2\ Id.
---------------------------------------------------------------------------

    Between May 18 and 22, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in separate 
supplemental questionnaires.\3\ The petitioner filed responses to the

[[Page 38855]]

supplemental questionnaires between May 20 and 26, 2020.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping Duties on Imports of Passenger Vehicle and Light Truck 
Tires from Korea, Taiwan, Thailand, and Vietnam: Supplemental 
Questions,'' dated May 18, 2020; and ``Country-Specific Supplemental 
Questionnaires: Korea Supplemental, Thailand Supplemental, Taiwan 
Supplemental, Vietnam Supplemental,'' dated May 18, 2020; see also 
``Petition for the Imposition of Antidumping Duties on Imports of 
Passenger Vehicle and Light Truck Tires from the Thailand: Second 
Supplemental Questionnaire,'' dated May 21, 2020.
    \4\ See Petitioner's Country-Specific Supplemental Responses, 
dated May 20, 2020; see also Petitioner's Letter, ``Passenger 
Vehicle and Light Truck Tires from the Korea, Taiwan, Thailand, and 
Vietnam--Petitioner's Amendment to Volume I Concerning General 
Issues,'' dated May 20, 2020 (General Issues Supplement); and 
Petitioner's ``Thailand Second Supplemental Responses,'' dated May 
22, 2020.
---------------------------------------------------------------------------

    On May 21, 2020, Commerce extended the initiation deadline by 20 
days to poll the domestic industry in accordance with section 
702(c)(4)(D) of the Act, because it was not ``clear from the Petitions 
whether the industry support criteria have been met . . . . '' \5\
---------------------------------------------------------------------------

    \5\ See Notice of Extension of the Deadline for Determining the 
Adequacy of the Antidumping and Countervailing Duty Petitions: 
Passenger Vehicle and Light Truck Tires from Korea, Taiwan, 
Thailand, and Vietnam, 85 FR 32013 (May 28, 2020) (Initiation 
Extension Notice).
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of passenger 
tires from Korea, Taiwan, Thailand, and Vietnam are being, or are 
likely to be, sold in the United States at less than fair value (LTFV) 
within the meaning of section 731 of the Act, and that imports of such 
products are materially injuring, or threatening material injury to, 
the passenger tires industry in the United States. Consistent with 
section 732(b)(1) of the Act, the Petitions are accompanied by 
information reasonably available to the petitioner supporting its 
allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry, because the petitioner is an interested party, 
as defined in section 771(9)(D) of the Act. Commerce also finds that 
the petitioner has demonstrated sufficient industry support for the 
initiation of the requested AD investigations.\6\
---------------------------------------------------------------------------

    \6\ See infra, section on ``Determination of Industry Support 
for the Petitions.''
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Periods of Investigation

    Because the Petitions were filed on May 13, 2020, the period of 
investigation (POI) for the Korea, Thailand, and Taiwan investigations 
is April 1, 2019 through March 31, 2020, and the POI for the Vietnam 
investigation is October 1, 2019 through March 31, 2020, pursuant to 19 
CFR 351.204(b)(1).\7\
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.204(b)(1).
---------------------------------------------------------------------------

Scope of the Investigations

    The products covered by these investigations are passenger tires 
from Korea, Taiwan, Thailand, and Vietnam. For a full description of 
the scope of these investigations, see the Appendix to this notice.

Comments on the Scope of the Investigations

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\8\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information,\9\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on July 13, 2020, which is the next business day after 20 calendar 
days from the signature date of this notice.\10\ Any rebuttal comments, 
which may include factual information, must be filed by 5:00 p.m. ET on 
July 23, 2020, which is ten calendar days from the initial comment 
deadline.\11\
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    \8\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \10\ In this case, 20 days after initiation falls on July 12, 
2020, a Sunday. Where a deadline falls on a weekend or a federal 
holiday, the appropriate deadline is the next business day. See 
Notice of Clarification: Application of ``Next Business Day'' Rule 
for Administrative Determination Deadlines Pursuant to the Tariff 
Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
    \11\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information parties consider 
relevant to the scope of the investigations be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigations may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\12\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \12\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------

Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of passenger tires to be 
reported in response to Commerce's AD questionnaires. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order to report the relevant costs of production 
accurately, as well as to develop appropriate product-comparison 
criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics, and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe passenger tires, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on July 13, 
2020, which is the next business day after 20 calendar days from the 
signature date of this notice.\13\ Any rebuttal comments must be filed 
by 5:00 p.m. ET on July 23, 2020, which is ten calendar days from the 
initial comment deadline. All comments and submissions to Commerce must 
be filed electronically using ACCESS, as explained above, on the record 
of each of the AD investigations.
---------------------------------------------------------------------------

    \13\ See Next Business Day Rule, 70 FR at 24533.
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the

[[Page 38856]]

domestic industry. Section 732(c)(4)(A) of the Act provides that a 
petition meets this requirement if the domestic producers or workers 
who support the petition account for: (i) At least 25 percent of the 
total production of the domestic like product; and (ii) more than 50 
percent of the production of the domestic like product produced by that 
portion of the industry expressing support for, or opposition to, the 
petition. Moreover, section 732(c)(4)(D) of the Act provides that, if 
the petition does not establish support of domestic producers or 
workers accounting for more than 50 percent of the total production of 
the domestic like product, Commerce shall: (i) Poll the industry or 
rely on other information in order to determine if there is support for 
the petition, as required by subparagraph (A); or (ii) determine 
industry support using a statistically valid sampling method to poll 
the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\14\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\15\
---------------------------------------------------------------------------

    \14\ See section 771(10) of the Act.
    \15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\16\ Based on our analysis of the information 
submitted on the record, we have determined that passenger tires, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\17\
---------------------------------------------------------------------------

    \16\ See Volume I of the Petitions at 3-5 and Exhibits I-1 and 
I-3.
    \17\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see country-specific AD Initiation Checklists at Attachment II, 
Analysis of Industry Support for the Antidumping and Countervailing 
Duty Petitions Covering Passenger Vehicle and Light Truck Tires from 
Korea, Taiwan, Thailand, and Vietnam. These checklists are dated 
concurrently with this notice and on file electronically via ACCESS.
---------------------------------------------------------------------------

    On May 21, 2020, Commerce extended the initiation deadline by 20 
days to poll the domestic industry in accordance with section 
732(c)(4)(D) of the Act, because it was not ``clear from the Petitions 
whether the industry support criteria have been met . . . . '' \18\
---------------------------------------------------------------------------

    \18\ See Initiation Extension Notice; see also Attachment II of 
the country-specific AD Initiation Checklists.
---------------------------------------------------------------------------

    On May 22, 2020, we issued polling questionnaires to all known 
producers identified in the Petitions, as well as the USW.\19\ We 
requested that the companies/workers complete the polling questionnaire 
and certify their responses by the due date specified in the cover 
letter to the questionnaire.\20\ The petitioner and Sumitomo \21\ 
provided comments on the polling questionnaire responses on June 9, 
2020.\22\ The petitioner and Hankook \23\ provided rebuttal comments on 
June 11, 2020.\24\
---------------------------------------------------------------------------

    \19\ See Memorandum, ``Passenger Vehicle and Light Truck Tires 
from Korea, Taiwan, Thailand, and Vietnam: Polling Questionnaire,'' 
dated May 22, 2020; see also Volume I of the Petitions at 5-6 and 
Exhibit I-2; and General Issues Supplement at 3 and Exhibit 1.
    \20\ For a detailed discussion of the responses received, see 
Attachment II of the country-specific AD Initiation Checklists. The 
polling questionnaire and questionnaire responses are on file 
electronically via ACCESS.
    \21\ Sumitomo Rubber (Thailand), Ltd., Sumitomo Rubber North 
America, Inc., and Sumitomo Rubber USA, LLC (collectively, 
Sumitomo). Sumitomo is a foreign producer/exporter in Thailand, a 
U.S. importer of passenger tires from Thailand, and a U.S. producer 
of passenger tires. See Sumitomo's Letter, ``Entry of Appearance,'' 
dated May 28, 2020.
    \22\ See Petitioner's Letter, ``Passenger Vehicle and Light 
Truck Tires from Korea, Taiwan, Thailand, and Vietnam: Industry 
Support Comments,'' dated June 9, 2020; see also Sumitomo's Letter, 
``Light Truck Tires from Thailand: Comments Regarding Responses to 
Polling Questionnaire and Industry Support for Petition,'' dated 
June 9, 2020.
    \23\ Hankook Tire & Technology Co., Ltd., Hankook Tire America 
Corp., and Hankook Tire Manufacturing Tennessee, LP (collectively, 
Hankook). Hankook is a Korean producer/exporter of passenger tires, 
a U.S. importer of passenger tires from Korea, and a U.S. producer/
exporter of passenger tires. See Hankook's Letter, ``Entry of 
Appearance,'' dated June 1, 2020.
    \24\ See Petitioner's Letter, ``Passenger Vehicle and Light 
Truck Tires from Korea, Taiwan, Thailand, and Vietnam: Industry 
Support Rebuttal Comments,'' dated June 11, 2020; see also Hankook's 
Letter, ``Antidumping Duty Petition on Passenger Vehicle and Light 
Truck Tires from Korea (A-580-908): Rebuttal Industry Support 
Comments,'' dated June 11, 2020.
---------------------------------------------------------------------------

    Our analysis of the data we received in the polling questionnaire 
responses indicates that the domestic producers and workers who support 
the Petitions account for at least 25 percent of the total production 
of the domestic like product and more than 50 percent of the production 
of the domestic like product produced by that portion of the industry 
expressing support for, or opposition to, the Petitions.\25\ 
Accordingly, Commerce determines that the industry support requirements 
of section 732(c)(4)(A) of the Act have been met and that the Petitions 
were filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.\26\
---------------------------------------------------------------------------

    \25\ See Attachment II of the country-specific AD Initiation 
Checklists.
    \26\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\27\
---------------------------------------------------------------------------

    \27\ See Volume I of the Petitions at 19-20 and Exhibit I-9.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
production and shipments lagging behind demand; declines in capacity 
utilization and employment; and declining financial performance.\28\ We 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as negligibility, 
and we have determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\29\
---------------------------------------------------------------------------

    \28\ See Volume I of the Petitions at 23-37 and Exhibits I-3, I-
9, and I-11 through I-15.
    \29\ See country-specific AD Initiation Checklists at Attachment 
III, Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Passenger Vehicle and Light Truck Tires from Korea, Taiwan, 
Thailand, and Vietnam.

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[[Page 38857]]

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate AD investigations of 
imports of passenger tires from Korea, Taiwan, Thailand, and Vietnam. 
The sources of data for the deductions and adjustments relating to U.S. 
price and normal value (NV) are discussed in greater detail in the 
country-specific AD Initiation Checklists.

U.S. Price

    For Korea, Taiwan, Thailand, and Vietnam, the Petitions base export 
price (EP) on the average unit value of publicly available import 
data.\30\
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    \30\ See country-specific AD Initiation Checklists.
---------------------------------------------------------------------------

Normal Value \31\
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    \31\ In accordance with section 505(a) of the Trade Preferences 
Extension Act of 2015 (TPEA), amending section 773(b)(2) of the Act, 
for these investigations, Commerce will request information 
necessary to calculate the constructed value and cost of production 
(COP) to determine whether there are reasonable grounds to believe 
or suspect that sales of the foreign like product have been made at 
prices that represent less than the COP of the product. Commerce no 
longer requires a COP allegation to conduct this analysis.
---------------------------------------------------------------------------

    For Korea, Taiwan, and Thailand, the petitioner based NV on home 
market price quotes obtained through market research for passenger 
tires produced in and sold, or offered for sale, in each country within 
the applicable time period.\32\ For Taiwan, the petitioner provided 
information indicating that the price quote was below the cost of 
production (COP) and, therefore, the petitioner also calculated NV 
based on constructed value (CV). For further discussion of CV, see the 
section ``Normal Value Based on Constructed Value.''
---------------------------------------------------------------------------

    \32\ See country-specific AD Initiation Checklists.
---------------------------------------------------------------------------

    Commerce considers Vietnam to be a non-market economy (NME) 
country.\33\ In accordance with section 771(18)(C)(i) of the Act, any 
determination that a foreign country is an NME country shall remain in 
effect until revoked by Commerce. Therefore, we continue to treat 
Vietnam as a NME country for purposes of the initiation of this 
investigation. Accordingly, NV in Vietnam is appropriately based on 
factors of production (FOPs) valued in a surrogate market economy 
country, in accordance with section 773(c) of the Act.\34\
---------------------------------------------------------------------------

    \33\ See Certain Frozen Fish Fillets from the Socialist Republic 
of Vietnam: Final Results, and Final Results of No Shipments of the 
Antidumping Duty Administrative Review; 2016-2017, 84 FR 18007 
(April 29, 2019).
    \34\ See Vietnam AD Checklist.
---------------------------------------------------------------------------

    The petitioner claims that India is an appropriate surrogate 
country for Vietnam because India is a market economy country that is 
at a level of economic development comparable to that of Vietnam and it 
is a significant producer of comparable merchandise.\35\ The petitioner 
provided publicly available information from India to value all FOPs. 
Based on the information provided by the petitioner, we determine that 
it is appropriate to use India as a surrogate country for initiation 
purposes.
---------------------------------------------------------------------------

    \35\ See Volume V of the Petition at 3-5 and Exhibits V-1, V-2, 
and V-3.
---------------------------------------------------------------------------

    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Because the petitioner is not a domestic producer, but a union 
representing workers in the domestic industry producing the like 
product of passenger tires, information on the FOPs based on the 
foreign producers' or domestic producers' own cost experience was not 
reasonably available to the petitioner. Therefore, to estimate 
Vietnamese manufacturers' FOPs the petitioner combined the information 
in thirteen publicly available cost models to create direct materials 
models that provide the average percentage of total tire weight 
represented by the direct materials for passenger car tires and for 
light truck tires.\36\ The petitioner valued the estimated FOPs using 
surrogate values from India. The petitioner calculated factory 
overhead, selling, general and administrative expenses, and profit 
based on the experience of an Indian producer of passenger tires.\37\
---------------------------------------------------------------------------

    \36\ See Volume V of the Petition at 8-15 and Exhibit 22.
    \37\ See Vietnam AD Checklist.
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Normal Value Based on Constructed Value

    As noted above, the petitioner provided information indicating that 
the price charged for passenger tires produced in and sold, or offered 
for sale, in Taiwan was below the COP. Accordingly, the petitioner also 
based NV on CV.\38\ Pursuant to section 773(e) of the Act, the 
petitioner calculated CV as the sum of the cost of manufacturing, 
selling, general, and administrative expenses, financial expenses, and 
profit.\39\
---------------------------------------------------------------------------

    \38\ See Taiwan AD Checklist.
    \39\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of passenger tires from Korea, Taiwan, Thailand, 
and Vietnam are being, or are likely to be, sold in the United States 
at LTFV. Based on comparisons of EP to NV in accordance with sections 
772 and 773 of the Act, the estimated dumping margins for passenger 
tires for each of the countries covered by this initiation are as 
follows: (1) Korea: 42.95 through 195.20 percent; (2) Taiwan: 20.57 
through 116.14 percent; (3) Thailand: 106.36 through 217.50 percent; 
and (4) Vietnam: 5.48 through 22.30 percent.\40\
---------------------------------------------------------------------------

    \40\ See country-specific Initiation Checklists for details of 
calculations.
---------------------------------------------------------------------------

Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating AD investigations to determine 
whether imports of passenger tires from Korea, Taiwan, Thailand, and 
Vietnam are being, or are likely to be, sold in the United States at 
LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of this 
initiation.

Respondent Selection

    In the Petitions, the petitioner named nine companies in Korea, 13 
companies in Taiwan, and 26 companies in Thailand \41\ as producers/
exporters of passenger tires.
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    \41\ See Volume I of the Petition at 14 and Exhibit I-8.
---------------------------------------------------------------------------

    Following standard practice in AD investigations involving market 
economy countries, in the event Commerce determines that the number of 
exporters or producers in any individual case is large such that 
Commerce cannot individually examine each company based upon its 
resources, where appropriate, Commerce intends to select mandatory 
respondents in that case based on U.S. Customs and Border Protection 
(CBP) data for U.S. imports under the appropriate Harmonized Tariff 
Schedule of the United States numbers listed in the ``Scope of the 
Investigations,'' in the appendix.
    On June 16, 2020, Commerce released CBP data on imports of 
passenger tires from Korea, Taiwan, and Thailand under Administrative 
Protective Order

[[Page 38858]]

(APO) to all parties with access to information protected by APO and 
indicated that interested parties wishing to comment on the CBP data 
must do so within three business days of the publication date of the 
notice of initiation of these investigations.\42\ Comments must be 
filed electronically using ACCESS. An electronically-filed document 
must be received successfully in its entirety via ACCESS by 5:00 p.m. 
ET on the specified deadline. Commerce will not accept rebuttal 
comments regarding the CBP data or respondent selection.
---------------------------------------------------------------------------

    \42\ See Memorandum, ``Antidumping Duty Investigation of 
Passenger Tires: Release of Customs Data from U.S. Customs and 
Border Protection,'' dated June 16, 2020.
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at http://enforcement.trade.gov/apo.
    With respect to Vietnam, the petitioner named 13 companies \43\ as 
producers/exporters of passenger tires in the Petitions. In accordance 
with our standard practice for respondent selection in AD 
investigations involving NME countries, Commerce selects respondents 
based on quantity and value (Q&V) questionnaires in cases where it has 
determined that the number of companies is large and it cannot 
individually examine each company based upon its resources. Therefore, 
considering the number of Vietnamese producers and exporters identified 
in the Petitions, Commerce will solicit Q&V information that can serve 
as a basis for selecting exporters for individual examination in the 
event that Commerce decides to limit the number of respondents 
individually examined pursuant to section 777A(c)(2) of the Act. Given 
that there are 13 producers and exporters identified in the Petitions, 
Commerce has determined that it will issue Q&V questionnaires to each 
potential respondent for which the petitioner has provided a complete 
address.
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    \43\ See Volume I of the Petition at 14 and Exhibit I-8.
---------------------------------------------------------------------------

    In addition, Commerce will post the Q&V questionnaire along with 
filing instructions on Enforcement and Compliance's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of 
passenger tires from Vietnam that do not receive Q&V questionnaires may 
still submit a response to the Q&V questionnaire and can obtain a copy 
of the Q&V questionnaire from Enforcement and Compliance's website. In 
accordance with the standard practice for respondent selection in AD 
cases involving NME countries, in the event Commerce decides to limit 
the number of respondents individually investigated, Commerce intends 
to base respondent selection on the responses to the Q&V questionnaire 
that it receives.
    Responses to the Q&V questionnaire must be submitted by the 
relevant Vietnamese producers/exporters no later than 5:00 p.m. ET on 
July 8, 2020. All Q&V questionnaire responses must be filed 
electronically via ACCESS. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above. Commerce intends to finalize its 
decisions regarding respondent selection within 20 days of publication 
of this notice.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\44\ 
The specific requirements for submitting a separate- rate application 
in a Vietnam investigation are outlined in detail in the application 
itself, which is available on Commerce's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate 
application will be due 30 days after publication of this initiation 
notice.\45\ Exporters and producers who submit a separate-rate 
application and have been selected as mandatory respondents will be 
eligible for consideration for separate-rate status only if they 
respond to all parts of Commerce's AD questionnaire as mandatory 
respondents. Commerce requires that companies from Vietnam submit a 
response to both the Q&V questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. Companies not filing a timely 
Q&V questionnaire response will not receive separate rate 
consideration.
---------------------------------------------------------------------------

    \44\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving NME Countries (April 5, 2005), available at http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
    \45\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
---------------------------------------------------------------------------

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\46\
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    \46\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the AD Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the AD Petitions have been 
provided to the governments of Korea, Taiwan, Thailand, and Vietnam via 
ACCESS. To the extent practicable, we will attempt to provide a copy of 
the public version of the AD Petitions to each exporter named in the AD 
Petitions, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 25 days after the date 
on which the ITC receives notice from Commerce of initiation of the 
investigations, whether there is a reasonable indication that imports 
of passenger tires from Korea, Taiwan, Thailand, and Vietnam are 
materially injuring, or threatening material injury to, a U.S. 
industry.\47\ A negative ITC determination for any country will result 
in the investigation being terminated with respect to that country.\48\ 
Otherwise, these AD investigations will proceed according to statutory 
and regulatory time limits.
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    \47\ See section 733(a) of the Act.
    \48\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the

[[Page 38859]]

adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \49\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\50\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
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    \49\ See 19 CFR 351.301(b).
    \50\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 504 of the TPEA amended the Act by adding the concept of 
particular market situation (PMS) for purposes of CV under section 
773(e) of the Act.\51\ Section 773(e) of the Act states that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation methodology under 
this subtitle or any other calculation methodology.'' When an 
interested party submits a PMS allegation pursuant to section 773(e) of 
the Act, Commerce will respond to such a submission consistent with 19 
CFR 351.301(c)(2)(v). If Commerce finds that a PMS exists under section 
773(e) of the Act, then it will modify its dumping calculations 
appropriately.
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    \51\ See TPEA, Pub. L. 114-27, 129 Stat. 362 (2015).
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    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set 
a deadline for the submission of PMS allegations and supporting factual 
information. However, in order to administer section 773(e) of the Act, 
Commerce must receive PMS allegations and supporting factual 
information with enough time to consider the submission. Thus, should 
an interested party wish to submit a PMS allegation and supporting new 
factual information pursuant to section 773(e) of the Act, it must do 
so no later than 20 days after submission of a respondent's initial 
section D questionnaire response.

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\52\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\53\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \52\ See section 782(b) of the Act.
    \53\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Commerce website at http://enforcement.trade.gov/apo. Parties wishing to participate in these 
investigations should ensure that they meet the requirements of these 
procedures (e.g., the filing of letters of appearance as discussed at 
19 CFR 351.103(d)). Note that Commerce has temporarily modified certain 
portions of its requirements for serving documents containing business 
proprietary information, until July 17, 2020, unless extended.\54\
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    \54\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May18, 
2020).
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    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: June 22, 2020.
Joseph A. Laroski Jr.,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix--Scope of the Investigations

    The scope of these investigations is passenger vehicle and light 
truck tires. Passenger vehicle and light truck tires are new 
pneumatic tires, of rubber, with a passenger vehicle or light truck 
size designation. Tires covered by these investigations may be tube-
type, tubeless, radial, or non-radial, and they may be intended for 
sale to original equipment manufacturers or the replacement market.
    Subject tires have, at the time of importation, the symbol 
``DOT'' on the sidewall, certifying that the tire conforms to 
applicable motor vehicle safety standards. Subject tires may also 
have the following prefixes or suffix in their tire size 
designation, which also appears on the sidewall of the tire:
    Prefix designations:
    P--Identifies a tire intended primarily for service on passenger 
cars.
    LT--Identifies a tire intended primarily for service on light 
trucks.
    Suffix letter designations:
    LT--Identifies light truck tires for service on trucks, buses, 
trailers, and multipurpose passenger vehicles used in nominal 
highway service.
    All tires with a ``P'' or ``LT'' prefix, and all tires with an 
``LT'' suffix in their sidewall markings are covered by these 
investigations regardless of their intended use.
    In addition, all tires that lack a ``P'' or ``LT'' prefix or 
suffix in their sidewall markings, as well as all tires that include 
any other prefix or suffix in their sidewall markings, are included 
in the scope, regardless of their intended use, as long as the tire 
is of a size that fits passenger cars or light trucks. Sizes that 
fit passenger cars and light trucks include, but are not limited to, 
the numerical size designations listed in the passenger car section 
or light truck section of the Tire and Rim Association Year Book, as 
updated annually. The scope includes all tires that are of a size 
that fits passenger cars or light trucks, unless the tire falls 
within one of the specific exclusions set out below.
    Passenger vehicle and light truck tires, whether or not attached 
to wheels or rims, are included in the scope. However, if a subject 
tire is imported attached to a wheel or rim, only the tire is 
covered by the scope.
    Specifically excluded from the scope are the following types of 
tires:

[[Page 38860]]

    (1) Racing car tires; such tires do not bear the symbol ``DOT'' 
on the sidewall and may be marked with ``ZR'' in size designation;
    (2) pneumatic tires, of rubber, that are not new, including 
recycled and retreaded tires;
    (3) non-pneumatic tires, such as solid rubber tires;
    (4) tires designed and marketed exclusively as temporary use 
spare tires for passenger vehicles which, in addition, exhibit each 
of the following physical characteristics:
    (a) The size designation and load index combination molded on 
the tire's sidewall are listed in Table PCT-1B (``T'' Type Spare 
Tires for Temporary Use on Passenger Vehicles) or PCT-1B (``T'' Type 
Diagonal (Bias) Spare Tires for Temporary Use on Passenger Vehicles) 
of the Tire and Rim Association Year Book,
    (b) the designation ``T'' is molded into the tire's sidewall as 
part of the size designation, and,
    (c) the tire's speed rating is molded on the sidewall, 
indicating the rated speed in MPH or a letter rating as listed by 
Tire and Rim Association Year Book, and the rated speed is 81 MPH or 
a ``M'' rating;
    (5) tires designed and marketed exclusively for specialty tire 
(ST) use which, in addition, exhibit each of the following 
conditions:
    (a) The size designation molded on the tire's sidewall is listed 
in the ST sections of the Tire and Rim Association Year Book,
    (b) the designation ``ST'' is molded into the tire's sidewall as 
part of the size designation,
    (c) the tire incorporates a warning, prominently molded on the 
sidewall, that the tire is ``For Trailer Service Only'' or ``For 
Trailer Use Only'',
    (d) the load index molded on the tire's sidewall meets or 
exceeds those load indexes listed in the Tire and Rim Association 
Year Book for the relevant ST tire size, and
    (e) either
    (i) the tire's speed rating is molded on the sidewall, 
indicating the rated speed in MPH or a letter rating as listed by 
Tire and Rim Association Year Book, and the rated speed does not 
exceed 81 MPH or an ``M'' rating; or
    (ii) 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;
    (6) tires designed and marketed exclusively for off-road use and 
which, in addition, exhibit each of the following physical 
characteristics:
    (a) The size designation and load index combination molded on 
the tire's sidewall are listed in the off-the-road, agricultural, 
industrial or ATV section of the Tire and Rim Association Year Book,
    (b) in addition to any size designation markings, the tire 
incorporates a warning, prominently molded on the sidewall, that the 
tire is ``Not For Highway Service'' or ``Not for Highway Use'',
    (c) the tire's speed rating is molded on the sidewall, 
indicating the rated speed in MPH or a letter rating as listed by 
the Tire and Rim Association Year Book, and the rated speed does not 
exceed 55 MPH or a ``G'' rating, and
    (d) the tire features a recognizable off-road tread design.
    The products covered by these investigations are currently 
classified under the following Harmonized Tariff Schedule of the 
United States (HTSUS) subheadings: 4011.10.10.10, 4011.10.10.20, 
4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 
4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10. 
Tires meeting the scope description may also enter under the 
following HTSUS subheadings: 4011.90.10.10, 4011.90.10.50, 
4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 
8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.60, 
8708.70.60.30, 8708.70.60.45, and 8708.70.60.60. While HTSUS 
subheadings are provided for convenience and for customs purposes, 
the written description of the subject merchandise is dispositive.

[FR Doc. 2020-13958 Filed 6-26-20; 8:45 am]
 BILLING CODE 3510-DS-P




The Crittenden Automotive Library