Certain New Pneumatic Off-the-Road Tires From India, the People's Republic of China, and Sri Lanka: Initiation of Countervailing Duty Investigations |
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Paul Piquado
Department of Commerce
10 February 2016
[Federal Register Volume 81, Number 27 (Wednesday, February 10, 2016)]
[Notices]
[Pages 7067-7073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02713]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-870, C-570-035, C-542-801]
Certain New Pneumatic Off-the-Road Tires From India, the People's
Republic of China, and Sri Lanka: Initiation of Countervailing Duty
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective date: February 10, 2016.
FOR FURTHER INFORMATION CONTACT: Spencer Toubia at (202) 482-0123
(India); Laurel LaCivita at (202) 482-4243 (People's Republic of
China); and Elizabeth Eastwood at (202) 482-3874 (Sri Lanka); AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On January 8, 2016, the Department of Commerce (Department)
received countervailing duty (CVD) petitions concerning imports of
certain new pneumatic off-the-road tires (off road tires) from India,
the People's Republic of China (PRC), and Sri Lanka, filed in proper
form on behalf of Titan Tire Corporation (Titan) and the United Steel,
Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial
and Service Workers International Union, AFL-CIO, CLC (USW)
(collectively, Petitioners).\1\ The
[[Page 7068]]
CVD petitions were accompanied by antidumping duty (AD) petitions for
India and the PRC.\2\ Petitioners are a domestic producer of off road
tires and a recognized union, which represents the domestic industry
engaged in the manufacture of off road tires in the United States.\3\
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\1\ See ``Petitions for the Imposition of Antidumping Duties on
Imports of Certain New Pneumatic Off-the-Road Tires from India and
the People's Republic of China and Countervailing Duties on Imports
of Certain New Pneumatic Off-the-Road Tires from India, the People's
Republic of China, and Sri Lanka,'' dated January 8, 2016
(collectively, Petitions).
\2\ Id.
\3\ See Volume I of the Petitions, at 1-2.
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On January 12, 2016, the Department requested information and
clarification for certain areas of the Petitions.\4\ Petitioners filed
responses to these requests on January 14, 2016,\5\ and provided
further clarification regarding scope on January 20, 2016.\6\ On
January 21, 2016, ATC Tires Private Ltd. and Alliance Tire Americas,
Inc. (collectively, Alliance) provided comments on domestic industry
support and requested that the Department poll the domestic industry
with respect to the Petitions.\7\ On January 22, 2016, Petitioners
provided a response to Alliance's comments on industry support and
request for polling.\8\ Alliance provided additional comments on
January 28, 2016.\9\ On January 27, 2016, the Department determined to
toll all deadlines four business days as a result of the Federal
Government closure during snowstorm ``Jonas'', applicable to this
initiation.
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\4\ See the following January 12, 2016, letters from the
Department to the Petitioners: ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain New
Pneumatic Off-the-Road Tires from India and the People's Republic of
China and Countervailing Duties on Imports from Sri Lanka:
Supplemental Questions'' (General Issues Supplemental
Questionnaire), ``Petition for the Imposition of Countervailing
Duties on Imports of Certain New Pneumatic Off-the-Road Tires from
India: Supplemental Questions,'' ``Petition for the Imposition of
Antidumping Duties on Imports of Certain New Pneumatic Off-the-Road
Tires from the PRC: Supplemental Questions for Volume III,'' and
``Petition for the Imposition of Countervailing Duties on Imports of
Certain New Pneumatic Off-the-Road Tires from Sri Lanka:
Supplemental Questions.''
\5\ See the following January 14, 2016, responses from
Petitioners: ``Petitioners' Response to the Department's January 12,
2016 Supplemental Questions Regarding General Issues'' (General
Issues Supplement); ``Scope Supplement to the Petitions for the
Imposition of Antidumping Duties on Imports of Certain New Pneumatic
Off-the-Road Tires from India and the People's Republic of China and
Countervailing Duties on Imports of Certain New Pneumatic Off-the-
Road Tires from India, the People's Republic of China, and Sri
Lanka'' (First Scope Supplement); ``Petitioners' Response to the
Department's January 12, 2016 Supplemental Questions Regarding the
Countervailing Duty Petition on India'' (India Supplemental
Response); ``Petitioners' Response to the Department's January 12,
2016 Supplemental Questions Regarding the Countervailing Duty
Petition on China'' (PRC Supplemental Response; and ``Petitioners'
Response to the Department's January 12, 2016 Supplemental Questions
Regarding the Countervailing Duty Petition on Sri Lanka'' (Sri Lanka
Supplemental Response).
\6\ See Petitioners' submission, ``Second Scope Supplement to
the Petitions for the Imposition of Antidumping Duties on Imports of
Certain New Pneumatic Off-the-Road Tires from India and the People's
Republic of China and Countervailing Duties on Imports of Certain
New Pneumatic Off-the-Road Tires from India, the People's Republic
of China, and Sri Lanka,'' dated January 20, 2016 (Second Scope
Supplement).
\7\ See letter from Alliance, ``Certain New Pneumatic Off-the-
Road Tires from India, the People's Republic of China and Sri Lanka:
Comments on Industry Support,'' dated January 21, 2016 (Alliance
Letter).
\8\ See letter from Petitioners, ``Petitioners' Response to
Alliance's Polling Request Regarding the Petitions for the
Imposition of Antidumping Duties on Imports of Certain New Pneumatic
Off-the-Road Tires from India and the People's Republic of China and
Countervailing Duties on Imports of Certain New Pneumatic Off-the-
Road Tires from India, the People's Republic of China, and Sri
Lanka,'' dated January 22, 2016 (``Petitioners' Response to Alliance
Letter'').
\9\ See letter from Alliance, ``Certain New Pneumatic Off-the-
Road Tires from India, the People's Republic of China and Sri Lanka:
Reply Comments on Industry Support,'' dated January 21, 2016
(``Alliance Letter II'').
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As explained in the memorandum from the Acting Assistant Secretary
for Enforcement and Compliance, the Department has exercised its
discretion to toll all administrative deadlines due to the recent
closure of the Federal Government. All deadlines in this segment of the
proceeding have been extended by four business days. The revised
deadline for the initiation of these CVD investigations is now February
3, 2016.\10\
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\10\ See Memorandum to the Record from Ron Lorentzen, Acting A/S
for Enforcement & Compliance, regarding ``Tolling of Administrative
Deadlines As a Result of the Government Closure During Snowstorm
Jonas,'' dated January 27, 2016.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), Petitioners allege that the Government of India
(GOI), the Government of China (GOC), and the Government of Sri Lanka
(GOSL) are providing countervailable subsidies (within the meaning of
sections 701 and 771(5) of the Act) to imports of off road tires from
India, the PRC, and Sri Lanka, respectively, and that such imports are
materially injuring, or threatening material injury to, an industry in
the United States. Also, consistent with section 702(b)(1) of the Act,
for those alleged programs in India, the PRC, and Sri Lanka on which we
have initiated a CVD investigation, the Petitions are accompanied by
information reasonably available to Petitioners supporting their
allegation.
The Department finds that Petitioners filed these Petitions on
behalf of the domestic industry because Petitioners are interested
parties as defined in sections 771(9)(C) and (D) of the Act. The
Department also finds that Petitioners demonstrated sufficient industry
support with respect to the initiation of the CVD investigations that
Petitioners are requesting.\11\
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\11\ See the ``Determination of Industry Support for the
Petitions'' section below.
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Period of Investigation
Pursuant to 19 CFR 351.204(b)(2), because the Petitions were filed
on January 8, 2016, the period of investigation is January 1, 2015,
through December 31, 2015, for India, the PRC, and Sri Lanka.
Scope of the Investigations
The product covered by these investigations is off road tires from
India, the PRC, and Sri Lanka. For a full description of the scope of
these investigations, see the ``Scope of the Investigations'' in
Appendix I of this notice. As explained in more detail in Appendix I,
the scope of the PRC investigation is narrower than the scope of the
investigations from India and Sri Lanka because the PRC investigation
excludes any products covered by the existing antidumping and
countervailing duty orders on Certain New Pneumatic Off-the-Road Tires
from the PRC.\12\
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\12\ See Certain New Pneumatic Off-the-Road Tires From the
People's Republic of China: Notice of Amended Final Affirmative
Determination of Sales at Less Than Fair Value and Antidumping Duty
Order, 73 FR 51624 (September 4, 2008) (A-570-912), and Certain New
Pneumatic Off-the-Road Tires From the People's Republic of China:
Countervailing Duty Order, 73 FR 51626 (September 4, 2008) (C-570-
913).
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Comments on Scope of the Investigations
During our review of the Petitions, the Department issued questions
to, and received responses from, Petitioners pertaining to the proposed
scope to ensure that the scope language in the Petitions would be an
accurate reflection of the products for which the domestic industry is
seeking relief.\13\
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\13\ See General Issues Supplemental Questionnaire and First and
Second Scope Supplements.
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As discussed in the preamble to the Department's regulations,\14\
we are setting aside a period for interested parties to raise issues
regarding product coverage (scope). The Department 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
[[Page 7069]]
include factual information (see 19 CFR 351.102(b)(21)), all such
factual information should be limited to public information. In order
to facilitate preparation of its questionnaires, the Department
requests all interested parties submit such comments by 5:00 p.m.
Eastern Time (ET) on Tuesday, February 23, 2016, which is 20 calendar
days from the signature date of this notice. Any rebuttal comments,
which may include factual information, must be filed by 5:00 p.m. ET on
Friday, March 4, 2016, which is 10 calendar days after the initial
comments deadline.
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\14\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
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The Department requests that any factual information the parties
consider relevant to the scope of the investigations be submitted
during this time 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 the Department
and request permission to submit the additional information. All such
comments must also be filed on the record of each of the concurrent AD
and CVD investigations.
Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS).\15\ An electronically-
filed document must be received successfully in its entirety by the
time and date it is due. 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 18022, 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 deadlines.
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\15\ 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 the Department's electronic
filing requirements, which went into effect on 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%
20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations
Pursuant to section 702(b)(4)(A)(i) of the Act, the Department
notified representatives of the GOI, GOC, and GOSL of the receipt of
the Petitions. Also, in accordance with section 702(b)(4)(A)(ii) of the
Act, the Department provided representatives of the GOI, GOC, and GOSL
the opportunity for consultations with respect to the CVD Petitions.
Consultations were held in Washington, DC with representatives of
GOSL on January 14, 2016, and with representatives from GOI on January
28, 2016.\16\ The GOC did not accept our invitation to hold
consultations before the initiation.\17\ All invitation letters and
memoranda regarding these consultations are on file electronically via
ACCESS.
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\16\ See Memorandum to the File from Whitley Herndon, Analyst,
entitled, ``Consultations with Officials from the Government of Sri
Lanka Regarding the Countervailing Duty Petition Concerning Certain
New Pneumatic Off-The-Road Tires (Off Road Tires) from Sri Lanka,''
dated January 15, 2016; and Memorandum to the File from Spencer
Toubia, Analyst, entitled, ``Countervailing Duty Petition on Certain
New Pneumatic Off-The-Road Tires from India: Consultations with the
Government of India,'' dated January 28, 2016.
\17\ See Letter from Erin Begnal, Director, Office III,
entitled, ``Countervailing Duty Petition on Certain New Pneumatic
Off-The-Road Tires from the People's Republic of China: Invitation
for Consultations to Discuss the Countervailing Duty Petition,''
dated January 11, 2016.
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Determination of Industry Support for the Petitions
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(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 702(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 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,\18\ 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.\19\
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\18\ See section 771(10) of the Act.
\19\ 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
Petitions).
With regard to the domestic like product, Petitioners do not offer
a definition of the domestic like product distinct from the scope of
the investigations. Based on our analysis of the information submitted
on the record, we determined that off road tires constitute a single
domestic like product and we analyzed industry support in terms of that
domestic like product.\20\
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\20\ For a discussion of the domestic like product analysis in
this case, see Countervailing Duty Investigation Initiation
Checklist: Certain New Pneumatic Off-the-Road Tires from India
(India CVD Initiation Checklist), at Attachment II, Analysis of
Industry Support for the Antidumping and Countervailing Duty
Petitions Covering Certain New Pneumatic Off-the-Road Tires from
India, the People's Republic of China, and Sri Lanka (Attachment
II); Countervailing Duty Investigation Initiation Checklist: Certain
New Pneumatic Off-the-Road Tires from the People's Republic of China
(PRC CVD Initiation Checklist), at Attachment II; and Countervailing
Duty Investigation Initiation Checklist: Certain New Pneumatic Off-
the-Road Tires from Sri Lanka (Sri Lanka CVD Initiation Checklist),
at Attachment II. These checklists are dated concurrently with this
notice and on file electronically via ACCESS. Access to documents
filed via ACCESS is also available in the Central Records Unit, Room
B8024 of the main Department of Commerce building.
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In determining whether Petitioners have standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the
[[Page 7070]]
``Scope of the Investigations,'' in Appendix I of this notice. To
establish industry support, Petitioners provided Titan's production of
the domestic like product in 2015 and estimated the 2015 production for
each remaining U.S. producer of off road tires, by plant. Petitioners
based their estimates of 2015 off road tire production by plant on
daily plant-specific production capacity data published in Modern Tire
Dealer. Petitioners multiplied the daily production capacity data by
360 (to estimate annual capacity) and then multiplied the annual
production capacity for each plant by Titan's capacity utilization
rate, which Petitioners believe is representative of the U.S. off road
tires industry (to estimate domestic production by each plant). To
calculate industry support, Petitioners added Titan's 2015 production
of the domestic like product to the estimated 2015 production of the
domestic like product for those plants represented by the USW, and
divided the result by the estimated production of the domestic like
product in 2015 for the entire U.S. off road tires industry.\21\ We
relied on the data Petitioners provided for purposes of measuring
industry support.\22\
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\21\ See Volume I of the Petitions, at I-5--I-9 and Exhibits I-
3--I-9 and I-33; see also General Issues Supplement, at 4-9 and
Exhibits I-SQ-1, I-SQ-5--I-SQ-8.
\22\ Id. For further discussion, see India CVD Initiation
Checklist, PRC CVD Initiation Checklist, and Sri Lanka CVD
Initiation Checklist, at Attachment II.
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On January 21, 2016, we received comments on industry support from
ATC Tires Private Ltd. and Alliance Tire Americas, Inc. (collectively,
Alliance), an Indian producer of the subject merchandise and its U.S.
importer.\23\ Petitioners responded to these comments on January 22,
2016.\24\ Alliance submitted additional industry support comments on
January 28, 2016.\25\ For further discussion of these comments, see the
India CVD Initiation Checklist, PRC CVD Initiation Checklist, and Sri
Lanka CVD Initiation Checklist, at Attachment II.
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\23\ See Letter from Alliance, dated January 21, 2016.
\24\ See Letter from Petitioners, dated January 22, 2016.
\25\ See Letter from Alliance, dated January 28, 2016.
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On January 21, 2016, we received comments on industry support from
Alliance, an Indian producer of the subject merchandise and its U.S.
importer.\26\ Petitioners responded to these comments on January 22,
2016.\27\ Alliance submitted additional industry support comments on
January 28, 2016.\28\ For further discussion of these comments, see the
India CVD Initiation Checklist, PRC CVD Initiation Checklist, and Sri
Lanka CVD Initiation Checklist, at Attachment II.
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\26\ See Alliance Letter.
\27\ See Petitioners' Response to the Alliance Letter.
\28\ See Alliance Letter II.
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Our review of the data provided in the Petitions, General Issues
Supplement, letters from Alliance and Petitioners, and other
information readily available to the Department indicates that
Petitioners have established industry support.\29\ First, the Petitions
established support from domestic producers and workers accounting for
more than 50 percent of the total production of the domestic like
product and, as such, the Department is not required to take further
action in order to evaluate industry support (e.g., polling).\30\
Second, the domestic producers and workers have met the statutory
criteria for industry support under section 702(c)(4)(A)(i) of the Act
because the domestic producers and workers who support the Petitions
account for at least 25 percent of the total production of the domestic
like product.\31\ Finally, the domestic producers and workers have met
the statutory criteria for industry support under section
702(c)(4)(A)(ii) of the Act because the domestic producers and workers
who support the Petitions account for 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.\32\
Accordingly, the Department determines that the Petitions were filed on
behalf of the domestic industry within the meaning of section 702(b)(1)
of the Act.
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\29\ See India CVD Initiation Checklist, PRC CVD Initiation
Checklist, and Sri Lanka CVD Initiation Checklist, at Attachment II.
\30\ See section 702(c)(4)(D) of the Act; see also India CVD
Initiation Checklist, PRC CVD Initiation Checklist, and Sri Lanka
CVD Initiation Checklist, at Attachment II.
\31\ See India CVD Initiation Checklist, PRC CVD Initiation
Checklist, and Sri Lanka CVD Initiation Checklist, at Attachment II.
\32\ Id.
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The Department finds that Petitioners filed the Petitions on behalf
of the domestic industry because they are interested parties as defined
in sections 771(9)(C) and (D) of the Act and they have demonstrated
sufficient industry support with respect to the CVD investigations that
they are requesting the Department initiate.\33\
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\33\ Id.
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Injury Test
Because India, the PRC, and Sri Lanka are ``Subsidies Agreement
Countries'' within the meaning of section 701(b) of the Act, section
701(a)(2) of the Act applies to these investigations. Accordingly, the
ITC must determine whether imports of the subject merchandise from
India, the PRC, and Sri Lanka materially injure, or threaten material
injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioners allege that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In CVD petitions, section
771(24)(A) of the Act provides that imports of subject merchandise must
exceed the negligibility threshold of three percent, except that
imports of subject merchandise from developing countries in CVD
investigations must exceed the negligibility threshold of four percent,
pursuant to section 771(24)(B) of the Act. Petitioners demonstrate that
imports from India and Sri Lanka, which have been designated as least-
developed countries under section 771(36)(B) of the Act, exceed the
four percent negligibility threshold provided for under section
771(24)(B) of the Act.\34\
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\34\ See Volume I of the Petitions, at I-27, I-28, I-34 and
Exhibit I-17.
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With regard to the PRC, Petitioners argue that the covered tires
are entered under at least fifteen basket categories that do not permit
the imports to be reliably quantified based on publicly available data.
Accordingly, the data do not show whether imports from the PRC meet the
statutory requirements for negligibility. However, Petitioners allege
and provide supporting evidence that (1) there is a reasonable
indication that data obtained in the ITC's investigation will establish
that imports exceed the negligibility threshold,\35\ and (2) there is
the potential that imports from the PRC will imminently exceed the
negligibility threshold. Petitioners' arguments regarding the
limitations of publicly available import data and the collection of
scope-specific import data in the ITC's investigation are consistent
with the SAA. Furthermore, Petitioners' arguments regarding the
potential for imports to imminently exceed the negligibility threshold
are consistent with the statutory criteria for ``negligibility in
threat analysis'' under section 771(24)(A)(iv) of the Act, which
provides that imports shall not be treated as negligible if there is a
[[Page 7071]]
potential that subject imports from a country will imminently exceed
the statutory requirements for negligibility.
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\35\ See Statement of Administrative Action (SAA), H.R. Doc. No.
103-316, Vol. 1, (1994) (SAA), at 857; see also Volume I of the
Petitions, at I-29--I-34 and Exhibits I-17--I-21.
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Petitioners contend that the industry's injured condition is
illustrated by reduced market share; decline in shipments, production,
and capacity utilization; underselling and price suppression or
depression; reduced employment variables; lost sales and revenues; and
decline in financial performance.\36\ We assessed the allegations and
supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation.\37\
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\36\ See Volume I of the Petitions, at I-18 through I-22, I-24
through I-61 and Exhibits I-14, I-15, I-17 through I-37; see also
General Issues Supplement, at 1-3 and Exhibits I-SQ-1 and I-SQ-4.
\37\ See India CVD Initiation Checklist, PRC CVD Initiation
Checklist, and Sri Lanka CVD Initiation Checklist, at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain New Pneumatic Off-the-Road Tires from India, the
People's Republic of China, and Sri Lanka.
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Initiation of Countervailing Duty Investigations
Section 702(b)(1) of the Act requires the Department to initiate a
CVD investigation whenever an interested party filed a CVD petition on
behalf of an industry that: (1) Alleges elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to Petitioner
supporting the allegations.
Petitioners allege that producers/exporters of off road tires in
India, the PRC, and Sri Lanka benefit from countervailable subsidies
bestowed by the GOI, GOC, and GOSL, respectively. The Department
examined the Petitions and finds that they comply with the requirements
of section 702(b)(1) of the Act. Therefore, in accordance with section
702(b)(1) of the Act, we are initiating CVD investigations to determine
whether manufacturers, producers, or exporters of off road tires from
India, the PRC, and Sri Lanka receive countervailable subsidies from
the GOI, GOC, and GOSL, respectively.
On June 29, 2015, the President of the United States signed into
law the Trade Preferences Extension Act of 2015, which made numerous
amendments to the AD and CVD law.\38\ The 2015 law does not specify
dates of application for those amendments. On August 6, 2015, the
Department published an interpretative rule, in which it announced the
applicability dates for each amendment to the Act, except for
amendments contained in section 771(7) of the Act, which relate to
determinations of material injury by the ITC.\39\ The amendments to
sections 771(15), 773, 776, and 782 of the Act are applicable to all
determinations made on or after August 6, 2015, and, therefore, apply
to these CVD investigations.\40\
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\38\ See Trade Preferences Extension Act of 2015, Public Law
114-27, 129 Stat. 362 (2015).
\39\ See Dates of Application of Amendments to the Antidumping
and Countervailing Duty Laws Made by the Trade Preferences Extension
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice).
\40\ Id., at 46794-95. The 2015 amendments may be found at
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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India
Based on our review of the petition, we find that there is
sufficient information to initiate a CVD investigation on 27 of the 29
alleged programs in India.\41\ For a full discussion of the basis for
our decision to initiate or not initiate on each program, see the India
CVD Initiation Checklist.
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\41\ See India CVD Initiation Checklist for a more detailed
explanation.
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PRC
Based on our review of the petition, we find that there is
sufficient information to initiate a CVD investigation on all 38
alleged programs in the PRC.\42\ For a full discussion of the basis for
our decision to initiate on each program, see the PRC CVD Initiation
Checklist.
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\42\ See PRC CVD Initiation Checklist for a more detailed
explanation.
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Sri Lanka
Based on our review of the petition, we find that there is
sufficient information to initiate a CVD investigation on 16 of the 22
alleged programs in Sri Lanka.\43\ For a full discussion of the basis
for our decision to initiate or not initiate on each program, see Sri
Lanka CVD Initiation Checklist.
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\43\ See Sri Lanka CVD Initiation Checklist for a more detailed
explanation.
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A public version of the initiation checklists for each
investigation is available on ACCESS.
In accordance with section 703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determination no later than 65 days after the date of this initiation.
Respondent Selection
Petitioners named six companies as producers/exporters of off road
tires from India and 17 from Sri Lanka.\44\ Following standard practice
in CVD investigations, for the India and Sri Lanka CVD cases, the
Department intends to select respondents based on U.S. Customs and
Border Protection (CBP) data for U.S. imports of off road tires during
the periods of investigation under the appropriate Harmonized Tariff
Schedule of the United States numbers listed in the scope of Appendix
I, below. We intend to release CBP data under Administrative Protective
Order (APO) to all parties with access to information protected by APO
within five business days of publication of this Federal Register
notice.
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\44\ See Volume I of the Petitions, at Exhibits I-13 and I-36.
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Interested parties wishing to comment regarding the CBP data and/or
respondent selection for India and Sri Lanka must do so within seven
calendar days after the placement of the CBP data on the record of this
investigation. Parties wishing to submit rebuttal comments should
submit those comments five calendar days after the deadline for the
initial comments. An electronically-filed document must be received
successfully in its entirety by the Department's electronic records
system, ACCESS, by 5:00 p.m. ET by the date noted above. We intend to
make our decision regarding respondent selection within 20 days of
publication of this notice.
With respect to the PRC, Petitioners named 28 companies as
producers/exporters of off road tires.\45\ Because of the existing CVD
order on Certain New Pneumatic Off-the-Road Tires from the PRC, the
Department is giving further consideration to the appropriate
methodology for selecting respondents in this investigation.
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\45\ See Volume I of the Petition at Exhibit I-12.
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In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the GOI, GOC, and GOSL via ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petitions to each exporter named in the Petitions, as provided
under 19 CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there
[[Page 7072]]
is a reasonable indication that imports of off road tires from India,
the PRC, and Sri Lanka are materially injuring, or threatening material
injury to, a U.S. industry.\46\ A negative ITC determination for any
country will result in the investigation being terminated with respect
to that country; \47\ otherwise, these investigations will proceed
according to statutory and regulatory time limits.
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\46\ See section 703(a)(2) of the Act.
\47\ See section 703(a)(1) of the Act.
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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
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). Any party, when submitting
factual information, to specify under which subsection of 19 CFR
351.102(b)(21) the information is being submitted \48\ 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.\49\ 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. Parties should review the regulations
prior to submitting factual information in these investigations.
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\48\ See 19 CFR 351.301(b).
\49\ See 19 CFR 351.301(b)(2).
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Extension of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351, or as
otherwise specified by the Secretary. 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 expires. 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 the letter or memorandum setting
forth 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. 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.\50\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials, as well as their
representatives. Investigations initiated on the basis of petitions
filed on or after August 16, 2013, and other segments of any AD or CVD
proceedings initiated on or after August 16, 2013, should use the
formats for the revised certifications provided at the end of the Final
Rule.\51\ The Department intends to reject factual submissions if the
submitting party does not comply with the applicable revised
certification requirements.
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\50\ See section 782(b) of the Act.
\51\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, 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. On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). 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)).
This notice is issued and published pursuant to sections 702 and
777(i) of the Act.
Dated: February 3, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigations
The scope of these investigations is certain new pneumatic off-
the-road tires (certain off road tires). Certain off road tires are
tires with an off road tire size designation. The tires included in
the scope may be either tube-type \52\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers
or the replacement market.
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\52\ While tube-type tires are subject to the scope of these
proceedings, tubes and flaps are not subject merchandise and
therefore are not covered by the scope of these proceedings,
regardless of the manner in which they are sold (e.g., sold with or
separately from subject merchandise).
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Subject tires may have the following prefix or suffix
designation, which appears on the sidewall of the tire:
Prefix designations:
DH--Identifies a tire intended for agricultural and logging service
which must be mounted on a DH drop center rim.
VA--Identifies a tire intended for agricultural and logging service
which must be mounted on a VA multipiece rim.
IF--Identifies an agricultural tire to operate at 20 percent higher
rated load than standard metric tires at the same inflation
pressure.
VF--Identifies an agricultural tire to operate at 40 percent higher
rated load than standard metric tires at the same inflation
pressure.
Suffix designations:
ML--Mining and logging tires used in intermittent highway service.
DT--Tires primarily designed for sand and paver service.
NHS--Not for Highway Service.
TG--Tractor Grader, off-the-road tire for use on rims having bead
seats with nominal +0.188'' diameter (not for highway service).
K--Compactor tire for use on 5[deg] drop center or semi-drop center
rims having bead seats with nominal minus 0.032 diameter.
IND--Drive wheel tractor tire used in industrial service.
SL--Service limited to agricultural usage.
FI--Implement tire for agricultural towed highway service.
CFO--Cyclic Field Operation.
SS--Differentiates tires for off-highway vehicles such as mini and
skid-steer loaders from other tires which use similar size
designations such as 7.00-15TR and 7.00-15NHS, but may use different
rim bead seat configurations.
All tires marked with any of the prefixes or suffixes listed
above in their sidewall markings are covered by the scope regardless
of their intended use.
In addition, all tires that lack any of the prefixes or suffixes
listed above 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 listed in the
following sections of the Tire and Rim
[[Page 7073]]
Association Year Book, as updated annually, unless the tire falls
within one of the specific exclusions set forth below. The sections
of the Tire and Rim Association Year Book listing numerical size
designations of covered certain off road tires include:
The table of mining and logging tires included in the section on
Truck-Bus tires;
The entire section on Off-the-Road tires;
The entire section on Agricultural tires; and
The following tables in the section on Industrial/ATV/Special
Trailer tires:
Industrial, Mining, Counterbalanced Lift Truck (Smooth
Floors Only);
Industrial and Mining (Other than Smooth Floors);
Construction Equipment;
Off-the-Road and Counterbalanced Lift Truck (Smooth
Floors Only);
Aerial Lift and Mobile Crane; and
Utility Vehicle and Lawn and Garden Tractor.
Certain off road tires, whether or not mounted on wheels or
rims, are included in the scope. However, if a subject tire is
imported mounted on a wheel or rim, only the tire is covered by the
scope. Subject merchandise includes certain off road tires produced
in the subject countries whether mounted on wheels or rims in a
subject country or in a third country. Certain off road tires are
covered whether or not they are accompanied by other parts, e.g., a
wheel, rim, axle parts, bolts, nuts, etc. Certain off road tires
that enter attached to a vehicle are not covered by the scope.
Excluded from the scope of these investigations are any products
covered by the existing antidumping and countervailing duty orders
on Certain New Pneumatic Off-the-Road Tires from the People's
Republic of China. See Certain New Pneumatic Off-the-Road Tires From
the People's Republic of China: Notice of Amended Final Affirmative
Determination of Sales at Less Than Fair Value and Antidumping Duty
Order, 73 FR 51624 (September 4, 2008); Certain New Pneumatic Off-
the-Road Tires From the People's Republic of China: Countervailing
Duty Order, 73 FR 51627 (September 4, 2008).\53\
\53\ In these prior investigations, the Department found that
imports of off road tires mounted on wheels were not within the
scope of subject merchandise. See Certain New Pneumatic Off-The-Road
Tires from the People's Republic of China: Final Affirmative
Determination of Sales at Less Than Fair Value and Partial
Affirmative Determination of Critical Circumstances, 73 FR 40485
(July 15, 2008) and accompanying Issues and Decision Memorandum at
Comment 19.
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In addition, specifically excluded from the scope are passenger
vehicle and light truck tires, racing tires, mobile home tires,
motorcycle tires, all-terrain vehicle tires, bicycle tires, on-road
or on-highway trailer tires, and truck and bus tires. Such tires
generally have in common that the symbol ``DOT'' must appear on the
sidewall, certifying that the tire conforms to applicable motor
vehicle safety standards. Such excluded tires may also have the
following prefixes and suffixes included as part of the size
designation on their sidewalls:
Prefix letter designations:
AT--Identifies a tire intended for service on All-Terrain Vehicles;
P--Identifies a tire intended primarily for service on passenger
cars;
LT--Identifies a tire intended primarily for service on light
trucks;
T--Identifies a tire intended for one-position ``temporary use'' as
a spare only; and
ST--Identifies a special tire for trailers in highway service.
Suffix letter designations:
TR--Identifies a tire for service on trucks, buses, and other
vehicles with rims having specified rim diameter of nominal plus
0.156'' or plus 0.250'';
MH--Identifies tires for Mobile Homes;
HC--Identifies a heavy duty tire designated for use on ``HC'' 15''
tapered rims used on trucks, buses, and other vehicles. This suffix
is intended to differentiate among tires for light trucks, and other
vehicles or other services, which use a similar designation.
Example: 8R17.5 LT, 8R17.5 HC;
LT--Identifies light truck tires for service on trucks, buses,
trailers, and multipurpose passenger vehicles used in nominal
highway service;
ST--Special tires for trailers in highway service; and
M/C--Identifies tires and rims for motorcycles.
The following types of tires are also excluded from the scope:
Pneumatic tires that are not new, including recycled or retreaded
tires and used tires; non-pneumatic tires, including solid rubber
tires; aircraft tires; and turf, lawn and garden, and golf tires.
Also excluded from the scope are mining and construction tires that
have a rim diameter equal to or exceeding 39 inches. Such tires may
be distinguished from other tires of similar size by the number of
plies that the construction and mining tires contain (minimum of 16)
and the weight of such tires (minimum 1500 pounds).
The subject merchandise is currently classifiable under
Harmonized Tariff Schedule of the United States (HTSUS) subheadings:
4011.20.1025, 4011.20.1035, 4011.20.5030, 4011.20.5050,
4011.61.0000, 4011.62.0000, 4011.63.0000, 4011.69.0050,
4011.92.0000, 4011.93.4000, 4011.93.8000, 4011.94.4000,
4011.94.8000, 8431.49.9038, 8431.49.9090, 8709.90.0020, and
8716.90.1020. Tires meeting the scope description may also enter
under the following HTSUS subheadings: 4011.99.4550, 4011.99.8550,
8424.90.9080, 8431.20.0000, 8431.39.0010, 8431.49.1090,
8431.49.9030, 8432.90.0005, 8432.90.0015, 8432.90.0030,
8432.90.0080, 8433.90.5010, 8503.00.9560, 8708.70.0500,
8708.70.2500, 8708.70.4530, 8716.90.5035 and 8716.90.5055. While
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the subject merchandise is dispositive.
[FR Doc. 2016-02713 Filed 2-9-16; 8:45 am]
BILLING CODE 3510-DS-P