Certain New Pneumatic Off-the-Road Tires From Sri Lanka: Final Affirmative Countervailing Duty Determination, and Final Determination of Critical Circumstances |
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Paul Piquado
Department of Commerce
10 January 2017
[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Notices]
[Pages 2949-2951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00266]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-542-801]
Certain New Pneumatic Off-the-Road Tires From Sri Lanka: Final
Affirmative Countervailing Duty Determination, and Final Determination
of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and exporters
of certain new pneumatic off-the-road tires (off road tires) from Sri
Lanka. The period of investigation (POI) is January 1, 2015, through
December 31, 2015. For information on the estimated subsidy rates, see
the ``Final Determination'' section of this notice.
DATES: Effective January 10, 2017.
FOR FURTHER INFORMATION CONTACT: E. Whitley Herndon, Office II, 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-
6274.
SUPPLEMENTARY INFORMATION:
Background
The petitioners in this investigation are Titan Tire Corporation
and the United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers International Union, AFL-
CIO, CLC. In addition to the Government of Sri Lanka, the mandatory
respondent in this investigation is Camso Loadstar (Private) Ltd.
(Camso Loadstar).
The events that occurred since the Department published the
Preliminary Determination \1\ on June 20, 2016, are discussed in the
Issues and Decision Memorandum, which is hereby adopted by this
notice.\2\ The Issues and Decision Memorandum also details the changes
we made since the Preliminary Determination to the subsidy rates
calculated for the mandatory respondent and all other producers/
exporters. The Issues and 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 B8024 of
the main Department of Commerce building. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/index.html. The signed Issues and
Decision Memorandum and the electronic version of the Issues and
Decision Memorandum are identical in content.
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\1\ See Certain New Pneumatic Off-the-Road Tires from Sri Lanka:
Preliminary Affirmative Countervailing Duty Determination,
Preliminary Affirmative Critical Circumstances Determination, and
Alignment of Final Determination with Final Antidumping
Determination, 81 FR 39900 (June 20, 2016) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum from Gary Taverman, Associate Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, to Paul Piquado, Assistant Secretary for Enforcement and
Compliance, entitled, ``Issues and Decision Memorandum for the Final
Determination in the Countervailing Duty Investigation of Certain
New Pneumatic Off-The-Road Tires from Sri Lanka,'' dated
concurrently with this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The scope of the investigation covers off road tires, which are
tires with an off road tire size designation. For a complete
description of the scope of the investigation, see Appendix I.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised, and to which we responded in the Issues and
Decision Memorandum, is attached to this notice as Appendix II.
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, and minor corrections presented at verification, we made
certain changes to Camso Loadstar's subsidy rate calculations since the
Preliminary Determination. For a discussion of these changes, see the
Issues and Decision Memorandum and the Final Analysis Memorandum.\3\
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\3\ See Memorandum ``Final Determination Calculation Memorandum
for Camso Loadstar (Private) Ltd. and Loadstar (Private) Ltd.
(collectively Camso Loadstar),'' dated concurrently with this notice
(Final Analysis Memorandum).
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Final Affirmative Determination of Critical Circumstances
On May 24, 2016, the petitioners filed a timely critical
circumstances allegation, pursuant to section 703(e)(1) of the Tariff
Act of 1930, as amended (the Act) and 19 CFR 351.206(c)(1),
[[Page 2950]]
alleging that critical circumstances exist with respect to imports of
off road tires from Sri Lanka.\4\ We preliminarily determined that
critical circumstances exist for Camso Loadstar and the companies
covered by the ``all others'' rate. For this final determination, in
accordance with section 705(a) of the Act, we continue to find that
critical circumstances exist for Camso Loadstar and the companies
covered by the ``all others'' rate. For a discussion, see the
``Critical Circumstances'' section and ``Comment 7'' of the Issues and
Decision Memorandum.
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\4\ See Letter from Petitioners, regarding Certain New Pneumatic
Off-The-Road Tires from Sri Lanka--Petitioners' Critical
Circumstances Allegation, dated May 24, 2016.
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Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated a rate for Camso Loadstar (the only individually
investigated exporter/producer of subject merchandise). Section
705(c)(5)(A)(i) of the Act states that, for companies not individually
investigated, we will determine an ``all others'' rate equal to the
weighted-average countervailable subsidy rates established for
exporters and producers individually investigated, excluding any zero
and de minimis countervailable subsidy rates, and any rates determined
entirely under section 776 of the Act. Where the rates for investigated
companies are zero or de minimis, or based entirely on facts otherwise
available, section 705(c)(5)(A)(ii) of the Act instructs the Department
to establish an ``all others'' rate using ``any reasonable method.''
Because the only individually calculated rate is not zero, de
minimis, or based entirely on facts otherwise available, in accordance
with 705(c)(5)(A)(i) of the Act, the rate calculated for Camso Loadstar
is assigned as the all-others rate. We determine the total estimated
net countervailable subsidy rates to be:
------------------------------------------------------------------------
Subsidy rate
Company (percent)
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Camso Loadstar (Private), Ltd........................... 2.18
All Others.............................................. 2.18
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Suspension of Liquidation
As a result of our affirmative Preliminary Determination and our
affirmative critical circumstances determination, pursuant to sections
703(d) and 703(e)(2)(A) of the Act, we instructed U.S. Customs and
Border Protection (CBP) to suspend liquidation of entries of subject
merchandise from Sri Lanka which were entered or withdrawn from
warehouse, for consumption on or after March 22, 2016, which is 90 days
before the date of the publication of the Preliminary Determination in
the Federal Register.\5\
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\5\ See Preliminary Determination.
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In accordance with section 703(d) of the Act, we later issued
instructions to CBP to discontinue the suspension of liquidation for
CVD purposes for subject merchandise entered, or withdrawn from
warehouse, on or after October 18, 2016, but to continue the suspension
of liquidation of all entries from March 22, 2016, through October 17,
2016, as appropriate.
We will issue a CVD order and reinstate the suspension of
liquidation in accordance with our final determination and under
section 706(a) of the Act if the United States International Trade
Commission (ITC) issues a final affirmative injury determination, and
we will instruct CBP to require a cash deposit of estimated
countervailing duties for such entries of merchandise in the amounts
indicated above. If the ITC determines that material injury, or threat
of material injury, does not exist, this proceeding will be terminated
and all estimated duties deposited as a result of the suspension of
liquidation will be refunded.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related 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 (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: January 3, 2017.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation 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 \6\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers
or the replacement market.
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\6\ While tube-type tires are subject to the scope of this
proceeding, tubes and flaps are not subject merchandise and
therefore are not covered by the scope of this proceeding,
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,
[[Page 2951]]
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
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.
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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. List of Issues
IV. Subsidies Valuation Information
V. Critical Circumstances
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Whether Camso Loadstar Benefited from Exemptions/
Concessions for Fiscal Levies on Imports of Spare Parts
Comment 2: Whether the Provision of Tax Concession for Exporters
of Non-Traditional Products Program is Countervailable
Comment 3: Whether the Nation Building Tax Preferences Program
is Specific and Constitutes a Financial Contribution
Comment 4: Whether Camso Loadstar Benefited from the Guaranteed
Price Scheme for Rubber
Comment 5: Whether to Use U.S. Dollar Amounts Recorded by Camso
Loadstar to Determine Subsidy Rates
Comment 6: Whether to Use Camso Loadstar's Revised FOB Sales
Data for Denominator
Comment 7: Whether the Department Should Continue to Find
Critical Circumstances
Comment 8: Whether to Terminate the Investigation
VIII. Recommendation
[FR Doc. 2017-00266 Filed 1-9-17; 8:45 am]
BILLING CODE 3510-DS-P