Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Initiation of Antidumping Duty Investigation |
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Paul Piquado
Department of Commerce
July 21, 2014
[Federal Register Volume 79, Number 139 (Monday, July 21, 2014)]
[Notices]
[Pages 42292-42298]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17111]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-016]
Certain Passenger Vehicle and Light Truck Tires From the People's
Republic of China: Initiation of Antidumping Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective: July 21, 2014.
FOR FURTHER INFORMATION CONTACT: Toni Page and Emily Halle, Office VII,
AD/CVD Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1398 and (202) 482-0176, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On June 3, 2014, the Department of Commerce (Department) received
an antidumping duty (AD) petition concerning imports of certain
passenger vehicle and light truck tires (certain passenger tires) from
the People's
[[Page 42293]]
Republic of China (PRC), officially 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
(Petitioner).\1\ The AD Petition was accompanied by a countervailing
duty (CVD) petition concerning imports of certain passenger tires from
the PRC. Petitioner is a recognized union, which represents the
domestic industry engaged in the manufacture of passenger vehicle tires
in the United States. On June 6, 2014, the Department requested
additional information and clarification of certain areas of the
Petition,\2\ and on June 10, 2014, Petitioner filed responses to these
requests.\3\ On June 23 and July 7, 2014, Petitioner filed supplemental
submissions to clarify the scope of the investigation.\4\ Because it
was not clear from the Petitions whether the industry support criteria
had been met, the Department extended the time for initiating this
investigation in order to further examine the issue of industry support
by 20 additional days.\5\ The extended initiation determination date of
July 13, 2014, falls on a Sunday, a non-business day, so the
Department's initiation determination is due no later than July 14,
2014, the next business day.\6\
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\1\ See ``Petition for the Imposition of Antidumping Duties on
Imports of Certain Passenger Vehicle and Light Truck Tires from the
People's Republic of China,'' (June 3, 2014) (Petition).
\2\ See Letter to Petitioner, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China: Supplemental Questions,'' June 6, 2014 (General Issues
Supplemental Questions).
\3\ See Letter from Petitioner ``Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China--Petitioner's
Response to the Department's June 6, 2014 Supplemental Questions--
Antidumping,'' June 10, 2014 (AD Supplement); see also ``Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China--Petitioner's Response to the Department's June 6, 2014
Supplemental Questions regarding General Issues,'' June 10, 2014
(General Issues Supplement).
\4\ See Letter from Petitioner, ``Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China--Petitioner's
Scope Clarification Request,'' June 23, 2014 (Scope Supplement); see
also Petitioner's filing ``Certain Passenger Vehicle and Light Truck
Tires from the People's Republic of China--Petitioner's Second Scope
Clarification Request,'' July 7, 2014 (Second Scope Supplement).
\5\ See Notice of Extension of the Deadline for Determining the
Adequacy of the Antidumping and Countervailing Duty Petitions:
Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China, 79 FR 35725 (June 24, 2014).
\6\ 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) (Next
Business Day Rule).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), Petitioner alleges that imports of certain passenger
tires from the PRC are being, or are likely to be, sold in the United
States at less than fair value within the meaning of section 731 of the
Act, and that such imports are materially injuring, or threatening
material injury to, an industry in the United States. Also, consistent
with section 732(b)(1) of the Act, the Petition is accompanied by
information reasonably available to Petitioner in support of its
allegations.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because Petitioner is an interested party as
defined in section 771(9)(D) of the Act, and has demonstrated
sufficient industry support with respect to the initiation of the AD
investigation that it is requesting.\7\
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\7\ See ``Determination of Industry Support for the Petition''
section, below.
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Period of Investigation
Because the Petition was filed on June 3, 2014, the period of
investigation (POI) is October 1, 2013, through March 31, 2014.\8\
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\8\ See 19 CFR 351.204(b)(1).
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Scope of the Investigation
The product covered by this investigation is certain passenger
tires from the PRC. For a full description of the scope of the
investigation, see the ``Scope of the Investigation'' at the Appendix
of this notice.
Comments on the Scope of the Investigation
During our review of the Petition, the Department issued questions
to, and received responses from, Petitioner pertaining to the proposed
scope in order to ensure that the language of the scope is an accurate
reflection of the products for which the domestic industry is seeking
relief.\9\ As discussed in the Preamble to the Department's
regulations, we are setting aside a period for interested parties to
raise issues regarding product coverage (scope).\10\ The period for
scope comments is intended to provide the Department with ample
opportunity to consider all comments and to consult with parties prior
to the issuance of the preliminary determination. If scope comments
include factual information,\11\ all such factual information should be
limited to public information. All such comments must be filed by 5:00
p.m. Eastern Time (EDT) on August 4, 2014, which is 20 calendar days
from the signature date of this notice.\12\ Any rebuttal comments,
which may include factual information, must be filed by 5:00 p.m. ET on
August 14, 2014, which is 10 calendar days after the initial comments.
The Department requests that any factual information the parties
consider relevant to the scope of the investigation be submitted during
this time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation may be relevant, the party may contact the Department and
request permission to submit the additional information. All such
comments must be filed on the records of the AD investigation, as well
as the concurrent CVD investigation.
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\9\ See General Issues Supplemental Questionnaire; see also
General Issues Supplement at 2-5 and Exhibits I-SQ-2 through I-SQ-6;
Scope Supplement at 2-3 and Exhibit 1; see also Second Scope
Supplement at 2 and Exhibit 1.
\10\ See Antidumping Duties; Countervailing Duties (Final Rule);
62 FR 27296, 27323 (May 19, 1997).
\11\ See 19 CFR 351.102(b)(21).
\12\ As 20 days from the signature date will be Saturday August
2, 2014, the next business day for filing comments will be Monday
August 4, 2014. See Next Business Day Rule.
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Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (IA ACCESS). An electronically
filed document must be received successfully in its entirety by 5:00
p.m. ET on the date specified by the Department. Documents excepted
from the electronic submission requirements must be filed manually
(i.e., in paper form) with Enforcement and Compliance's APO/Dockets
Unit, Room 1870, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230, and stamped with the
date and time of receipt by the applicable deadline.\13\
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\13\ See 19 CFR 351.303(b)(1); see also Antidumping and
Countervailing Duty Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR 39263 (July 6,
2011) for details of the Department's electronic filing
requirements, which went into effect on August 5, 2011. Information
on help using IA ACCESS can be found at https://iaaccess.trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on the Product Characteristics for the AD Questionnaire
The Department requests comments from interested parties regarding
the appropriate physical characteristics of certain passenger tires to
be reported in response to the Department's AD questionnaire. This
information will be used to identify the key physical
[[Page 42294]]
characteristics of the subject merchandise in order to report the
relevant factors of production accurately, as well as to develop
appropriate product-comparison criteria.
Interested parties may provide any information or comments that
they believe are relevant to the development of an accurate list of
physical characteristics. Specifically, interested parties 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, while there may be some physical product
characteristics utilized by manufacturers to describe certain 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, the Department 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 questionnaire, we must receive comments
on product characteristics no later than August 4, 2014. Rebuttal
comments must be received no later than August 14, 2014. All comments
and submissions to the Department must be filed electronically using IA
ACCESS, as referenced above.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the 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, the Department
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 the Department to look to producers and workers who produce the
domestic like product. The U.S. 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 the Department 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, the Department'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\
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\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)).
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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, Petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we determine that certain passenger vehicle and light truck
tires, as defined in the scope of the investigation, constitute a
single domestic like product and we analyzed industry support in terms
of that domestic like product.\16\
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\16\ See Antidumping Duty Investigation Initiation Checklist:
Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China (AD Initiation Checklist), at Attachment II,
Analysis of Industry Support for the Antidumping and Countervailing
Duty Petitions Covering Certain Passenger Vehicle and Light Truck
Tires from the People's Republic of China (Attachment II). This
checklist is dated concurrently with this notice and on file
electronically via IA ACCESS. Access to documents filed via IA
ACCESS is also available in the Central Records Unit (CRU), Room
7046 of the main Department of Commerce building.
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On June 12, 2014, we received comments on industry support from the
Sub-Committee of Tire Producers of the China Chamber of Commerce of
Metals, Minerals & Chemical Importers and the China Rubber Industry
Association.\17\ Petitioner responded to these comments on June 16 and
17, 2014.\18\ In a meeting on July 8, 2014, the Government of the PRC
also commented on industry support for the Petition.\19\
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\17\ See Letter, ``Request to Poll the Domestic Industry to
Determine Petitioner Standing: Certain Passenger Vehicle and Light
Truck Tires from China,'' June 12, 2014.
\18\ See Letter from Petitioner, ``Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China--Petitioner's
Response to CCCMC and CRIA's Request to Poll the Industry,'' June
16, 2014; see also Letter from Petitioner, ``Certain Passenger
Vehicle and Light Truck Tires from the People's Republic of China--
Additional Information in Response to CCCMC and CRIA's Request to
Poll the Industry,'' June 17, 2014.
\19\ See Memorandum, ``Antidumping Duty Investigation of
1,1,1,2-Tetrafluoroethane from the People's Republic of China and
the Antidumping Duty and Countervailing Duty Petitions for Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China: Meeting with Officials from the Government of the People's
Republic of China,'' July 9, 2014.
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On June 17, 2014, the Department 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. . . .'' \20\
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\20\ See Notice of Extension of the Deadline for Determining the
Adequacy of the Antidumping Duty and Countervailing Duty Petitions:
Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China, 79 FR 35725, 35726 (June 24, 2014).
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On June 20, 2014, we issued polling questionnaires to all known
producers of certain passenger vehicle and light truck tires in the
United States, identified in the Petition and by the ITC, as well as
all known unions, employee organizations, or ad hoc groups of
workers.\21\ 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.\22\ Petitioner
provided comments on the polling questionnaire responses on July 8,
2014.\23\
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\21\ See Memorandum, ``Certain Passenger Vehicle and Light Truck
Tires from the People's Republic of China: Polling Questionnaire,''
June 20, 2014.
\22\ For a detailed discussion of the responses received, see AD
Initiation Checklist at Attachment II. The polling questionnaire and
questionnaire responses are on file electronically via IA ACCESS and
can also be accessed through the CRU.
\23\ See Letter from Petitioner, ``Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China--Petitioner's
Comments on Polling Responses,'' July 8, 2014.
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[[Page 42295]]
Our analysis of the data we received in the polling questionnaire
responses indicates that the domestic producers and workers that
support the Petition 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 Petition.\24\
Accordingly, the Department determines that the industry support
requirements of section 732(c)(4)(A) of the Act have been met.
Therefore, the Department determines that Petitioner filed this
Petition on behalf of the domestic industry in accordance with section
732(b)(1) of the Act because it is an interested party as defined in
section 771(9)(D) of the Act and it demonstrated sufficient industry
support with respect to the AD investigation that it is requesting the
Department initiate.\25\
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\24\ See AD Initiation Checklist, at Attachment II.
\25\ Id.
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Allegations and Evidence of Material Injury and Causation
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 less than normal value (NV). In addition, Petitioner alleges
that subject imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.\26\
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\26\ See Volume I of the Petition at I-18 and Exhibit I-12.
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Petitioner contends that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenues; direct replacement of domestic
shipments by subject imports; decline in shipments, reduced sales
volumes, and production curtailments; decline in capacity utilization
and reduced capacity allocated to U.S. production of certain passenger
tires; decline in employment; adverse impact on union contract
negotiations; and adverse impact on financial performance.\27\ We
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, and causation, and we determined
that these allegations are properly supported by adequate evidence and
meet the statutory requirements for initiation.\28\
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\27\ See Volume I of the Petition, at I-15 through I-57 and
Exhibits I-2, I-3, and I-12 through I-53; see also General Issues
Supplement at 1 and Exhibit I-SQ-1.
\28\ See AD Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China.
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Allegation of Sales at Less Than Fair Value
The following is a description of the allegation of sales at less
than fair value upon which the Department based its decision to
initiate an investigation of imports of certain passenger tires from
the PRC. The sources of data for the deductions and adjustments
relating to U.S. price and NV are discussed in greater detail in the AD
Initiation Checklist.
Export Price
Petitioner based export price (EP) on import data obtained from the
U.S. Department of Commerce's Foreign Trade Division Merchandise
Imports database (Imports database) for certain passenger tires.
Petitioner calculated the average unit values (AUVs) per kilogram for
U.S. imports of certain passenger tires from the PRC entered during the
POI under ten Harmonized Tariff Schedule of the United States (HTSUS)
subheadings that cover certain passenger tires. As the Import database
import values reflect customs values and therefore exclude U.S. import
duties, freight, and insurance, Petitioner made adjustments to deduct
unrebated value added tax, foreign inland freight, and brokerage and
handling at port of exportation to derive a U.S. net price.\29\
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\29\ See Volume II of the Petition at II-6 through II-7; AD
Supplement at Exhibit II-SQ-16; and AD Initiation Checklist.
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Normal Value
Petitioner states that the Department has treated the PRC as a non-
market economy (NME) country in every proceeding in which the PRC has
been involved.\30\ The presumption of NME status for the PRC has not
been revoked by the Department and, therefore, in accordance with
section 771(18)(C)(i) of the Act, remains in effect for purposes of the
initiation of this investigation. Accordingly, the NV of the product
for the investigation is appropriately based on factors of production
(FOPs) valued in a surrogate market-economy country in accordance with
section 773(c) of the Act. In the course of this investigation, all
parties will have the opportunity to provide relevant information
related to the issues of the PRC's NME status and granting of separate
rates to individual exporters.
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\30\ See Volume II of the Petition at II-2.
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Petitioner contends that Thailand is the appropriate surrogate
country for the PRC because: (1) It is at a level of economic
development comparable to that of the PRC; (2) it is a significant
producer of comparable merchandise; and (3) the data for Thailand for
valuing factors of production are available and reliable.\31\ Based on
the information provided by Petitioner, we conclude that it is
appropriate to use Thailand as a surrogate country for initiation
purposes.\32\ After initiation of this investigation, 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.\33\
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\31\ Id. at II-2 through II-6 and Exhibits II-1 through II-4.
\32\ See AD Initiation Checklist.
\33\ See 19 CFR 351.301(c)(3)(i). Note that this is the revised
regulation published on April 10, 2013. See http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt.
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Petitioner calculated NV using the Department's NME methodology as
required by 19 CFR 351.202(b)(7)(i)(C) and 19 CFR 351.408. As
Petitioner is a union representing workers in the domestic industry
producing certain passenger tires and is not a domestic producer,
Petitioner contends it does not have access to the proprietary
information on the factors of production necessary to make certain
passenger tires. Therefore, Petitioner based NV on publicly available
information regarding the standard direct materials used to manufacture
certain passenger tires from a number of publications.\34\ Petitioner
asserts that the publicly available raw material models it provided are
representative, to the best of its knowledge, of the average makeup of
certain passenger tires.\35\ Using this information, Petitioner
calculated the average percentage of total tire weight represented by
each direct material for passenger car tires and for light truck tires.
The information regarding the percentages of direct materials used to
make a subject tire were applied to the average tire weight for each of
the ten HTSUS categories of certain passenger tires obtained from the
Imports database to calculate the average amount of each
[[Page 42296]]
direct material used in the manufacture of the subject merchandise.\36\
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\34\ See Volume II of the Petition at II-8 through II-10 and
Exhibits II-10 through II-21; see also AD Supplement at 3-5.
\35\ Id.
\36\ Id.
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Petitioner valued the FOPs using reasonably available, public
surrogate country data, specifically, Thai import data from the Global
Trade Atlas (GTA) for the period October 2013 through March 2014.\37\
Petitioner excluded from these GTA import statistics imports from
countries previously determined by the Department to be NME countries,
countries previously determined by the Department to maintain broadly
available, non-industry-specific export subsidies, and, in accordance
with the Department's practice, any imports that were labeled as
originating from an ``unspecified'' country.\38\ Petitioner valued most
of the direct material inputs (synthetic rubber, fillers, compounding
ingredients, reinforcing materials, scrap, and alternative materials)
using GTA Thai import data.\39\ Petitioner valued natural rubber using
information from the Rubber Research Institute of Thailand. \40\ The
Department determines that the surrogate values used by Petitioner are
reasonably available and, thus, are acceptable for purposes of
initiation.
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\37\ See Volume II of the Petition at II-10 and Exhibit II-23.
\38\ Id. at II-10 through II-11.
\39\ Id. at Exhibit II-23.
\40\ Id. at Exhibit II-24.
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Petitioner calculated the average labor hours required to make one
tire using the employment and production information from the financial
statements of three PRC tire manufacturers (GITI Tire, Doublestar Tyre,
and Guizhou Tyre Co., Ltd.).\41\ Petitioner then used the weight-
averaged amount of the three labor rates to determine an overall
average of labor hours required to make one subject tire. Petitioner
calculated the average hourly labor rate for an employee producing
tires using a 2007 Thailand wage rate from the National Statistics
Office's 2007 Industrial Census, and adjusted this rate for inflation
using the consumer price index (CPI) data for Thailand published by the
International Financial Statistics (IFS) and converted it to USD using
the POI average exchange rate.\42\
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\41\ Id. at II-14 and Exhibits II-25 through II-26; see also AD
Supplement at 5-9 and Exhibits II-SQ-3, II-SQ-5, and II-SQ-6.
\42\ See Volume II of the Petition at II-14 through II-15 and
Exhibits II-27, II-32, and II-33; see also AD Supplement at 10 and
Exhibit II-SQ-12.
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Petitioner calculated financial ratios (i.e., factory overhead
expenses, selling, general, and administrative expenses, and profit)
based on the 2013 year-end financial statements of Goodyear (Thailand)
Public Company Limited (Goodyear) and Hwa Fong Rubber (Thailand) Public
Company Limited (Hwa Fong), Thai manufacturers of tires, for the year
ending December 31, 2013.\43\ Because information provided by
Petitioner indicates that Hwa Fong produces bicycle and motorcycle
tires, which are not subject merchandise, while Goodyear produces
certain passenger tires, we are only relying on Goodyear's financial
statements for financial ratios.\44\
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\43\ See Volume II of the Petition at II-15 through II-16 and
Exhibits II-29 and II-30; see also AD Supplement at 10-13 and
Exhibits II-SQ-13 through II-SQ-17.
\44\ See AD Initiation Checklist under the ``Adjustments to
Normal Value'' section.
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Fair Value Comparisons
Based on the data provided by Petitioner, there is reason to
believe that imports of certain passenger tires from the PRC are being,
or are likely to be, sold in the United States at less than fair value.
Based on the comparison of net U.S. price to NV for the same or similar
passenger tires in accordance with section 773(c) of the Act,
Petitioner's estimated margins for certain passenger tires ranged from
45.80 to 87.99 percent.\45\
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\45\ See AD Supplement at Exhibit II-SQ-17 (chart titled
``Weighted average labor rate; original Goodyear financial ratios
only (profit reduced)'').
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Initiation of AD Investigation
Based on our examination of the Petition on certain passenger tires
from the PRC, the Department finds that the Petition meets the
requirements of section 732 of the Act. Therefore, we are initiating an
AD investigation to determine whether imports of certain passenger
tires from the PRC are being, or likely to be, sold in the United
States at less than fair value. 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 determination no later than 140 days after the date of this
initiation. For a discussion of evidence supporting our initiation
determination, see the AD Initiation Checklist which accompanies this
notice.
Respondent Selection
In accordance with our standard practice for respondent selection
in AD investigations involving NME countries, we intend to issue
quantity and value questionnaires to each potential respondent named in
the Petition,\46\ and will base respondent selection on the responses
received. In addition, the Department will post the quantity and value
questionnaire along with the filing instructions on the Enforcement and
Compliance Web site (http://trade.gov/enforcement/news.asp). Exporters
and producers of certain passenger tires from the PRC that do not
receive quantity and value questionnaires via mail may still submit a
quantity and value response, and can obtain a copy from the Enforcement
and Compliance Web site. The quantity and value questionnaire must be
submitted by all PRC exporters/producers no later than August 1, 2014.
All quantity and value questionnaires must be filed electronically
using IA ACCESS.
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\46\ See Volume I of the Petition at Exhibit I-9.
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Separate Rates
In order to obtain separate rate status in an NME AD investigation,
exporters and producers must submit a separate rate application.\47\
The specific requirements for submitting the separate rate application
in the PRC investigation are outlined in detail in the application
itself, which will be available on the Department's Web site at http://trade.gov/enforcement/news.asp on the date of publication of this
initiation notice in the Federal Register. The separate rate
application will be due 60 days after the publication of this
initiation notice. For exporters and producers who submit a separate
rate status application and have been selected as mandatory
respondents, these exporters and producers will no longer be eligible
for consideration for separate rate status unless they respond to all
parts of the Department's AD questionnaire as mandatory respondents.
The Department requires that the PRC respondents submit a response to
the separate rate application by the deadline referenced above in order
to receive consideration for separate rate status.
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\47\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005) (Separate
Rates and Combination Rates Bulletin), available on the Department's
Web site at http://enforcement.trade.gov/policy/).
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Use of Combination Rates
The Department 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 investigations 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
[[Page 42297]]
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.\48\
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\48\ See Separate Rates and Combination Rates Bulletin at 6
(emphasis added).
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Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act, and 19 CFR
351.202(f), copies of the public version of the Petition have been
provided to the Government of the PRC. Because of the particularly
large number of producers/exporters identified in the Petition, the
Department considers the service of the public version of the Petition
to the foreign producers/exporters to be satisfied by the provision of
the public version of the Petition to the Government of the PRC,
consistent with 19 CFR 351.203(c)(2).
ITC Notification
We notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 25 days after the date
on which the ITC receives notice from the Department of initiation of
the investigation, whether there is a reasonable indication that
imports of certain passenger tires from the PRC are materially
injuring, or threatening material injury to, a U.S. industry.\49\ A
negative ITC determination will result in the investigation being
terminated.\50\ Otherwise, this investigation will proceed according to
statutory and regulatory time limits.
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\49\ See section 733(a) of the Act.
\50\ Id.
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Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits for Submission of Factual Information:
Final Rule, 78 FR 21246 (April 10, 2013), which modified two
regulations related to AD and CVD proceedings: (1) The definition of
factual information (19 CFR 351.102(b)(21)), and (2) the time limits
for the submission of factual information (19 CFR 351.301). The final
rule identifies five categories of factual information in 19 CFR
351.102(b)(21), which are summarized as follows: (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 adequacy of remuneration
under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the
Department; and (v) evidence other than factual information described
in (i)-(iv). The final rule requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted 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. The final rule also modified 19 CFR 351.301 so that, rather
than providing general time limits, there are specific time limits
based on the type of factual information being submitted. These
modifications are effective for all proceeding segments initiated on or
after May 10, 2013, and thus are applicable to this investigation.
Please review the final rule, available at http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to
submitting factual information for this investigation.
Extension of Time Limits
On September 20, 2013, the Department published Extension of Time
Limits, Final Rule,\51\ which modified one regulation related to AD and
CVD proceedings regarding the extension of time limits for submissions
in such proceedings (19 CFR 351.302(c)). These modifications are
effective for all segments initiated on or after October 21, 2013, and
thus are applicable to this investigation. Please review the final
rule, available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm prior to requesting an extension.
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\51\ See 78 FR 57790 (September 20, 2013).
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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 are hereby reminded that the Department issued a final rule
with respect to certification requirements, effective August 16, 2013
and that the revised certification requirements are in effect for
company/government officials as well as their representatives. All
segments of any AD or CVD proceedings initiated on or after August 16,
2013, including this investigation, should use the formats for the
revised certifications provided at the end of the Final Rule.\53\ The
Department intends to reject factual submissions if the submitting
party does not comply with the applicable revised 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); see also the
frequently asked questions regarding the Final Rule, available at
the following: 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
administrative protective order (APO) in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found on
the Department's Web site at http://enforcement.trade.gov/apo/index.html.
This notice is issued and published pursuant to section 777(i) of
the Act and 19 CFR 351.203(c).
Dated: July 14, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Investigation
The scope of this investigation 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 this investigation 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 this
investigation 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 is among the numerical size designations
[[Page 42298]]
listed in the passenger car section or light truck section of the
Tire and Rim Association Year Book, as updated annually.
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 of this investigation are
the following types of tires: (1) Racing car tires, defined as tires
for use exclusively on a race track; such tires do not bear the
symbol ``DOT'' on the sidewall; (2) new pneumatic tires, of rubber,
of a size that is not listed in the passenger car section or light
truck section of the Tire and Rim Association Year Book; (3)
pneumatic tires, of rubber, that are not new, including recycled and
retreaded tires; and (4) non-pneumatic tires, such as solid rubber
tires.
The products covered by the investigation 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: 4011.99.45.00, 4011.99.85.00,
8708.70.45.45, 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. 2014-17111 Filed 7-18-14; 8:45 am]
BILLING CODE 3510-DS-P