Certain New Pneumatic Off-the-Road Tires From India: Negative Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination |
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Paul Piquado
Department of Commerce
19 August 2016
[Federal Register Volume 81, Number 161 (Friday, August 19, 2016)]
[Notices]
[Pages 55431-55434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19867]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-869]
Certain New Pneumatic Off-the-Road Tires From India: Negative
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') preliminarily
determines that certain new pneumatic off-the-road tires (``OTR
tires'') from India are not being, or are not likely to be, sold in the
United States at less than fair value (``LTFV''). The period of
investigation (``POI'') is January 1, 2015, through December 31, 2015.
The estimated weighted-average dumping margins of sales at LTFV are
shown in the ``Preliminary Determination'' section of this notice.
Interested parties are invited to comment on this preliminary
determination.
DATES: Effective August 19, 2016.
FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian or Trisha Tran,
AD/CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
6412, or (202) 482-4852, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the notice of initiation of this
investigation on February 10, 2016.\1\ For a complete description of
the events that followed the initiation of this investigation, see the
memorandum that is dated concurrently with this determination and
hereby adopted by this notice.\2\ A list of topics included in the
Preliminary Decision Memorandum is included as Appendix II to this
notice. The Preliminary Decision Memorandum is a public document and is
on file electronically via Enforcement and
[[Page 55432]]
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (``ACCESS''). ACCESS is available to registered users at
https://access.trade.gov, and to all parties in the Central Records
Unit, room B8024 of the main Department of Commerce building. In
addition, a complete version of the Preliminary Decision Memorandum can
be found at http://enforcement.trade.gov/frn/. The signed Preliminary
Decision Memorandum and the electronic version of the Preliminary
Decision Memorandum are identical in content.
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\1\ See Certain New Pneumatic Off-the-Road Tires from India and
the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigations, 81 FR 7073 (February 10, 2016) (``Initiation
Notice'').
\2\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Paul Piquado, Assistant Secretary for Enforcement and Compliance,
``Decision Memorandum for the Preliminary Determination in the Less-
Than-Fair-Value Investigation of Certain New Pneumatic Off-the-Road
Tires from India,'' dated concurrently with this notice
(``Preliminary Decision Memorandum'').
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On June 6, 2016, the Department published a notice of postponement
for the preliminary determination in this investigation in accordance
with section 733(c)(1)(B) of the Tariff Act of 1930, as amended (``the
Act''), and 19 CFR 351.205(f)(1).\3\ As a result of the 50-day
postponement, the revised deadline for the preliminary determination in
this investigation is now August 11, 2016.\4\
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\3\ See Certain New Pneumatic Off-the-Road Tires from India:
Postponement of Preliminary Determination of Antidumping Duty
Investigation, 81 FR 36263 (June 6, 2016).
\4\ Id., 81 FR at 36264.
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Scope of the Investigation
The product covered by this investigation is OTR tires. For a full
description of the scope of this investigation, see the ``Scope of the
Investigation,'' in Appendix I.
Scope Comments
In accordance with the preamble to the Department's regulations,\5\
the Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., ``scope'').\6\ Certain
interested parties commented on the scope of the investigation as it
appeared in the Initiation Notice. For a summary of the product
coverage comments and rebuttal responses submitted to the record for
this preliminary determination, and accompanying discussion and
analysis of all comments timely received, see the Preliminary Decision
Memorandum.
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\5\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
\6\ See Initiation Notice, 81 FR at 7074.
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Methodology
The Department is conducting this investigation in accordance with
section 731 of the Act. Export prices or constructed export prices have
been calculated in accordance with section 772(a) of the Act. Normal
value (``NV'') is calculated in accordance with section 773 of the Act.
For a full description of the methodology underlying our preliminary
conclusions, see the Preliminary Decision Memorandum.
Preliminary Determination
For this preliminary determination, we have calculated a zero
dumping margin for each individually investigated producer/exporter of
the subject merchandise. Consistent with section 733(b)(3) of the Act,
we are disregarding these rates and preliminarily determine that the
individually reviewed mandatory respondents have not made sales of
subject merchandise at LTFV.
------------------------------------------------------------------------
Weighted-
average
Exporter/Manufacturer dumping margin
(percent)
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ATC Tires Private Ltd................................... 0.00
Balkrishna Industries Limited........................... 0.00
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Consistent with section 733(d)(1)(A) of the Act, the Department has
not calculated a weighted-average dumping margin for all other
producers or exporters because it has not made an affirmative
preliminary determination of sales at LTFV.
Suspension of Liquidation
Because the Department has not made an affirmative preliminary
determination of sales at LTFV, we are not directing U.S. Customs and
Border Protection to suspend liquidation of any entries of OTR tires
from India.
Disclosure and Public Comment
We will disclose the calculations performed to interested parties
in this proceeding within five days of the date of announcement, in
accordance with 19 CFR 351.224(b). Interested parties are invited to
comment on this preliminary determination. Case briefs or other written
comments may be submitted to the Assistant Secretary for Enforcement
and Compliance no later than seven days after the date on which the
final verification report is issued in this proceeding, and rebuttal
briefs, limited to issues raised in case briefs, may be submitted no
later than five days after the deadline date for case briefs.\7\
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case
briefs or rebuttal briefs in this proceeding are encouraged to submit
with each argument: (1) A statement of the issue; (2) a brief summary
of the argument; and (3) a table of authorities.
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\7\ See 19 CFR 351.309.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, U.S. Department of Commerce.
All documents must be filed electronically using ACCESS. An
electronically-filed request must be received successfully in its
entirety by ACCESS by 5:00 p.m. Eastern Time, within 30 days after the
date of publication of this notice.\8\ Requests should contain the
party's name, address, and telephone number, the number of
participants, and a list of the issues to be discussed. If a request
for a hearing is made, the Department intends to hold the hearing at
the U.S. Department of Commerce, 14th Street and Constitution Avenue
NW., Washington, DC 20230, at a time and date to be determined. Parties
should confirm by telephone the date, time, and location of the hearing
two days before the scheduled date.
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\8\ See 19 CFR 351.310(c).
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Verification
As provided in section 782(i) of the Act, we intend to verify
information relied upon in making our final determination.
Postponement of Final Determination
Section 735(a)(2)(B) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of a
negative preliminary determination, a request for such postponement is
made by Petitioners. On July 28, 2016, Petitioner requested that the
Department postpone the final determination.\9\
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\9\ See Letter to the Secretary of Commerce from Petitioners
``Petitioners' Comment on the Extension of the Final Determination''
(July 28, 2016).
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In accordance with section 735(a)(2)(B) of the Act, because our
preliminary determination is negative, we are postponing the final
determination. Accordingly, we will make our final determination by no
later than 135 days after the date of publication of this preliminary
determination, pursuant to section 735(a)(2) of the Act.
International Trade Commission (``ITC'') Notification
In accordance with section 733(f) of the Act, we are notifying the
ITC of our negative preliminary determination of sales at LTFV. If our
final determination is affirmative, the ITC will determine before the
later of 120 days after the date of this preliminary determination, or
45 days after our final determination whether these imports are
materially injuring, or threaten material injury to, the U.S. industry.
[[Page 55433]]
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: August 11, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The scope of the investigation is certain new pneumatic off-the-
road tires (OTR tires). OTR tires are tires with an off road tire
size designation. The tires included in the scope may be either
tube-type \10\ or tubeless, radial, or non-radial, regardless of
whether for original equipment manufacturers or the replacement
market.
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\10\ 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 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
OTR 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.
OTR 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 OTR tires produced in the subject
countries whether mounted on wheels or rims in a subject country or
in a third country. OTR tires are covered whether or not they are
accompanied by other parts, e.g., a wheel, rim, axle parts, bolts,
nuts, etc. OTR tires that enter attached to a vehicle are not
covered by the scope.
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, 4011.69.0090,
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: 4011.99.4590, 4011.99.8590,
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.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination
V. Scope of the Investigation
VI. Scope Comments
VII. Discussion of Methodology
A. Determination of the Comparison Method
B. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Export Price and Constructed Export Price
XI. Normal Value
A. Home Market Viability
B. Affiliated Party Transactions and Arm's-Length Test
C. Level of Trade
D. Cost of Production Analysis
1. Calculation of COP
2. Test of Home Market Sale Prices
3. Results of the COP Test
E. Calculation of NV Based on Comparison-Market Prices
XII. Currency Conversion
XIII. U.S. ITC Notification
XIV. Disclosure and Public Comment
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XV. Verification
XVI. Conclusion
[FR Doc. 2016-19867 Filed 8-18-16; 8:45 am]
BILLING CODE 3510-DS-P