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Paul Piquado
Department of Commerce
December 1, 2014
[Federal Register Volume 79, Number 230 (Monday, December 1, 2014)]
[Notices]
[Pages 71093-71095]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28257]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-017]
Countervailing Duty Investigation of Certain Passenger Vehicle
and Light Truck Tires From the People's Republic of China: Preliminary
Affirmative Determination, Preliminary Affirmative Critical
Circumstances Determination, in Part, and Alignment of Final
Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of passenger vehicle and light truck tires
(passenger tires) from the People's Republic of China (PRC). The period
of investigation is January 1, 2013, through December 31, 2013. We
invite interested parties to comment on this preliminary determination.
DATES: Effective Date: Insert date of publication in the Federal
Register.
FOR FURTHER INFORMATION CONTACT: Emily Halle or Jason Rhoads, AD/CVD
Operations, Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone 202.482.0176,
202.482.0123, respectively.
SUPPLEMENTARY INFORMATION:
Scope of the Investigation
The products covered by this investigation are certain passenger
tires from the PRC. For a complete description of the scope of this
investigation, see the Memorandum from Christian Marsh, Deputy
Assistant Secretary for Antidumping and Countervailing Duty Operations
to Paul Piquado, Assistant Secretary for Enforcement and Compliance,
``Countervailing Duty Investigation of Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China: Decision
Memorandum for the Preliminary Determination,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum). The Preliminary Decision Memorandum is a public document
and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at http://access.trade.gov, and is available to all parties in the Central
Records Unit, room 7046 of the main Department of Commerce building. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at http://trade.gov/enforcement. The signed
Preliminary Decision Memorandum and the electronic versions of the
Preliminary Decision Memorandum are identical in content.
Methodology
The Department is conducting this countervailing duty (CVD)
investigation in accordance with section 701 of the Tariff Act of 1930,
as amended (the Act). For each of the subsidy programs found
countervailable, we preliminarily determine that there is a subsidy,
i.e., a financial contribution by an ``authority'' that gives rise to a
benefit to the recipient, and that the subsidy is specific.\1\ For a
full description of the methodology underlying our preliminary
conclusions, see the Preliminary Decision Memorandum.
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\1\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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The Department notes that, in making these findings, we relied, in
part, on facts available and, because one or more respondents did not
act to the best of their ability to respond to the Department's
requests for information, we drew an adverse inference where
appropriate in selecting from among the
[[Page 71094]]
facts otherwise available.\2\ For further information, see ``Use of
Facts Otherwise Available and Adverse Inferences'' in the Preliminary
Decision Memorandum.
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\2\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning
the final CVD determination in this investigation with the final
determination in the companion antidumping duty (AD) investigation of
passenger tires from the PRC based on a request made by Petitioner.\3\
Consequently, the final CVD determination will be issued on the same
date as the final AD determination, which is currently scheduled to be
issued no later than April 6, 2015, unless postponed.
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\3\ Collectively, United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union, AFL-CIO, CLC. See Letter from Petitioner,
``Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China--Petitioner's Request for Alignment of
Countervailing Duty Investigation Final Determination Deadline with
Antidumping Investigation Final Determination Deadline,'' November
5, 2014.
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Critical Circumstances, in Part
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
passenger tires from the PRC for Shandong Yongsheng Rubber Group Co.,
Ltd. (Yongsheng) and all other exporters or producers not individually
examined. A discussion of our determination can be found in the
Preliminary Decision Memorandum.
Preliminary Determination and Suspension of Liquidation
In accordance with section 703(d)(1)(A)(i) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
individually-investigated exporters/producers of the subject
merchandise.\4\ We also calculated an all-others rate. In accordance
with sections 703(d) and 705(c)(5)(A) of the Act, for companies not
individually investigated, we apply an ``all-others'' rate, which is
normally calculated by weighting the subsidy rates of the individual
companies selected as mandatory respondents by those companies' exports
of the subject merchandise to the United States. Under section
705(c)(5)(A)(i) of the Act, the all-others rate excludes zero and de
minimis rates calculated for the exporters and producers individually
investigated as well as rates based entirely on facts otherwise
available. Therefore, we have excluded the rate for Yongsheng from the
all-others rate. Notwithstanding the language of section
705(c)(5)(A)(i) of the Act, we have not calculated the ``all-others''
rate by weight averaging the rates of the two individually investigated
respondents, because doing so risks disclosure of proprietary
information. Therefore, and consistent with the Department's practice
where such risk exists, for the ``all-others'' rate, we calculated a
weight average of the two responding firms' rates using publicly ranged
data.\5\ The overall preliminary estimated countervailable subsidy
rates are summarized in the table below:
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\4\ The individually-investigated exporters/producers are GITI
Tire (Fujian) Co., Ltd., and its cross-owned affiliated companies
GITI Tire (China) Investment Company Ltd., GITI Radial Tire (Anhui)
Company Ltd., GITI Tire (Hualin) Company Ltd., GITI Steel Cord
(Hubei) Company Ltd., and Anhui Prime Cord Fabrics Company Ltd.; and
Cooper Kunshan Tire Co., Ltd., and its cross-owned affiliated
company, Cooper Chengshan (Shandong) Tire Co., Ltd.
\5\ See, e.g., Hardwood and Decorative Plywood from the People's
Republic of China: Final Affirmative Countervailing Duty
Determination; 2011, 78 FR 58283 (September 23, 2013).
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Subsidy
Exporter/Producer rate (%)
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GITI Tire (Fujian) Co., Ltd. and certain cross-owned 17.69
companies...................................................
Cooper Kunshan Tire Co., Ltd and certain cross-owned 12.50
companies...................................................
Shandong Yongsheng Rubber Group Co., Ltd..................... 81.29
All-Others................................................... 15.69
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In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we
are directing U.S. Customs and Border Protection (CBP) to suspend
liquidation of all entries of passenger tires from the PRC that are
entered, or withdrawn from warehouse, for consumption on or after the
date of the publication of this notice in the Federal Register, and to
require a cash deposit for such entries of merchandise in the amounts
indicated above. Moreover, because we preliminarily find critical
circumstances exist with respect to Yongsheng, and all other exporters
or producers not individually examined, in accordance with section
703(e)(2)(A) of the Act, we are directing CBP to apply the suspension
of liquidation to any unliquidated entries entered, or withdrawn from
warehouse for consumption by these companies, on or after the date
which is 90 days prior to the date of publication of this notice in the
Federal Register.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information submitted by the respondents prior to making our final
determination.
Disclosure and Public Comment
The Department intends to disclose to interested parties the
calculations performed in connection with this preliminary
determination within five days of its public announcement.\6\
Interested parties may submit case and rebuttal briefs, as well as
request a hearing.\7\ For a schedule of the deadlines for filing case
briefs, rebuttal briefs, and hearing requests, see the Preliminary
Decision Memorandum.
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\6\ See 19 CFR 351.224(b).
\7\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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International Trade Commission Notification
In accordance with section 703(f) of the Act, we will notify the
International Trade Commission (ITC) of our determination. In addition,
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow
the ITC access to all privileged and business proprietary information
in our files, provided the ITC confirms that it will not disclose such
information, either publicly or under an administrative protective
order, without the written consent of the Assistant Secretary for
Enforcement and Compliance.
In accordance with section 705(b)(2) of the Act, if our final
determination is affirmative, the ITC will make its final determination
within 45 days after the Department makes its final determination.
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: November 21, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Respondent Selection
VII. Preliminary Determination of Critical Circumstances, in Part
VIII. Injury Test
IX. Application of the Countervailing Duty Law to Imports from the
PRC
[[Page 71095]]
X. Subsidies Valuation
XI. Benchmarks and Discount Rates
XII. Use of Facts Otherwise Available and Adverse Inferences
XIII. Analysis of Programs
XIV. ITC Notification
XV. Disclosure and Public Comment
XVI. Verification
XVII. Conclusion
[FR Doc. 2014-28257 Filed 11-28-14; 8:45 am]
BILLING CODE 3510-DS-P