Home Page American Government Reference Desk Shopping Special Collections About Us Contribute



Escort, Inc.






GM Icons
By accessing/using The Crittenden Automotive Library/CarsAndRacingStuff.com, you signify your agreement with the Terms of Use on our Legal Information page. Our Privacy Policy is also available there.

Truck and Bus Tires From the People's Republic of China: Final Affirmative Countervailing Duty Determination, Final Affirmative Critical Circumstances Determination, in Part


American Government Buses Trucking Cars in China

Truck and Bus Tires From the People's Republic of China: Final Affirmative Countervailing Duty Determination, Final Affirmative Critical Circumstances Determination, in Part

Ronald K. Lorentzen
Department of Commerce
27 January 2017


[Federal Register Volume 82, Number 17 (Friday, January 27, 2017)]
[Notices]
[Pages 8606-8608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01862]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-041]


Truck and Bus Tires From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination, Final Affirmative 
Critical Circumstances Determination, in Part

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 truck and bus tires from the People's Republic of China (PRC). For 
information on the estimated subsidy rates, see the ``Final 
Determination'' section of this notice. The period of investigation is 
January 1, 2015, through December 31, 2015.

DATES: Effective January 27, 2017.

FOR FURTHER INFORMATION CONTACT: Jennifer Shore or Mark Kennedy, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-2778 or (202) 482-7883, 
respectively.

Background

    The Department published the Preliminary Determination on July 5, 
2016.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Issues and Decision Memorandum.\2\ 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/. The signed Issues and Decision Memorandum 
and the electronic version are identical in content.
---------------------------------------------------------------------------

    \1\ See Truck and Bus Tires From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, 
Preliminary Affirmative Critical Circumstances Determination, in 
Part, and Alignment of Final Determination With Final Antidumping 
Determination, 81 FR 43577 (July 5, 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 Ronald K. Lorentzen, Acting Assistant Secretary for 
Enforcement and Compliance, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Truck and Bus Tires from the People's Republic of China,'' dated 
concurrently with this determination (Issues and Decision 
Memorandum) and hereby adopted by this notice.
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are truck and bus tires 
from the PRC. For a full description of the scope of the investigation, 
see Appendix I.

Scope Comments

    Since the Preliminary Determination, the Department has received 
comments on the scope of this investigation from the parties in this 
investigation. See Issues and Decision Memorandum for further details. 
The scope in Appendix I reflects the final scope language.

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 
raised by parties, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix II.

Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available and, because the Government of China and a 
respondent company did not act to the best of their abilities in 
responding to the Department's requests for information, we drew an 
adverse inference where appropriate in selecting from among the facts 
otherwise available, pursuant to section 776(a) and (b) of the Tariff 
Act of 1930, as amended, (the Act). For further information, see the 
section ``Use of Facts Otherwise Available and Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of information requested and received from 
the GOC and the company respondents since the Preliminary 
Determination, the results of verification, and the comments received 
from parties, we have made certain changes to the respondents' subsidy 
rate calculations. For discussion

[[Page 8607]]

of these changes, see the Issues and Decision Memorandum.

Final Determination of Critical Circumstances, in Part

    In the Preliminary Determination, the Department found that 
critical circumstances exist with respect to truck and bus tires from 
the PRC produced and/or exported by Guizhou Tyre Co., Ltd. (GTC) and 
its cross-owned trading company, Guizhou Tyre Import and Export Co., 
Ltd. (GTCIE), but did not exist for Double Coin or all other companies. 
Upon further analysis of the data following the Preliminary 
Determination, under section 705(a)(2) of the Act, we continue to find 
that critical circumstances do not exist with respect to imports of 
truck and bus tires from the PRC for Double Coin and that critical 
circumstances exist with respect to imports of truck and bus tires from 
the PRC for GTC and GTCIE. In addition, for purposes of this final 
determination, we find that critical circumstances exist with respect 
to imports of truck and bus tires from the PRC for all other companies. 
A discussion of our determination can be found in the Issues and 
Decision Memorandum.

Final Determination

    We determine that countervailable subsidies are being provided with 
respect to the manufacture, production, or exportation of the subject 
merchandise. In accordance with section 705(c)(1)(B)(i)(I) of the Act, 
we calculated a CVD rate for each individually-investigated producer/
exporter of the subject merchandise. In accordance with section 
705(c)(5)(A)(i) of the Act, for companies not individually examined, we 
apply an ``all-others'' rate, which is normally calculated by weighting 
the subsidy rates of the 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 should exclude zero and 
de minimis rates or any rates based entirely on facts otherwise 
available pursuant to section 776 of the Act. Neither of the mandatory 
respondents' rates in this final determination was zero or de minimis 
or based entirely on facts otherwise available. In order to ensure that 
business proprietary information is not disclosed, we have calculated 
the all-others rate as a simple average of the countervailable subsidy 
rates found for the two mandatory respondents.\3\
---------------------------------------------------------------------------

    \3\ See Memorandum to the File, ``Calculation of the All-Others 
Rate'' dated concurrently with this final determination.
---------------------------------------------------------------------------

    We determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                           Subsidy Rate
                         Company                             (percent)
------------------------------------------------------------------------
Shanghai Huayi Group Corporation Limited; Double Coin              38.61
 Holdings Ltd.; Double Coin Group (Jiangsu) Tyre Co.,
 Ltd.; Double Coin Group (Chongqing) Tyre Co., Ltd.;
 Double Coin Group Shanghai Donghai Tyre Co. Ltd.;
 Double Coin Group (Xinjiang) Kunlun Tyre Co., Ltd......
Guizhou Tyre Import and Export Co., Ltd.; Guizhou Tyre             65.46
 Co., Ltd...............................................
All-Others..............................................           52.04
------------------------------------------------------------------------

Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of truck 
and bus tires from the PRC exported by Double Coin and all other 
companies that were entered, or withdrawn from warehouse, for 
consumption on or after July 5, 2016, the date of the publication of 
the Preliminary Determination in the Federal Register. With respect to 
entries of subject merchandise exported by GTC and GTCIE, as a result 
of our preliminary affirmative critical circumstances determination, we 
instructed CBP to suspend liquidation of entries that were entered, or 
withdrawn from warehouse, for consumption on or after April 6, 2016, 
which is 90 days before the date of the publication of the Preliminary 
Determination in the Federal Register. At that time, we also instructed 
CBP to collect cash deposits of estimated countervailing duties at the 
rates determined in the Preliminary Determination for such entries of 
merchandise. In accordance with section 703(d) of the Act, we 
instructed CBP to discontinue the suspension of liquidation for CVD 
purposes for subject merchandise entered, or withdrawn from warehouse, 
on or after November 2, 2016, but to continue the suspension of all 
entries from April 6, 2016, or July 5, 2016 (for GTC and GTCIE, or 
Double Coin and all other companies, respectively) through November 1, 
2016, as appropriate.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. On the basis of our 
final affirmative critical circumstances determination, we will 
instruct CBP to suspend liquidation on entries of truck and bus tires 
from China for all other companies effective April 6, 2016. 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 or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

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 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 (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 an 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/

[[Page 8608]]

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 that is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

     Dated: January 19, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The scope of the investigation covers truck and bus tires. Truck 
and bus tires are new pneumatic tires, of rubber, with a truck or 
bus size designation. Truck and bus tires covered by this 
investigation may be tube-type, tubeless, radial, or non-radial.
    Subject tires have, at the time of importation, the symbol 
``DOT'' on the sidewall, certifying that the tire conforms to 
applicable motor vehicle safety standards. Subject tires may also 
have one of the following suffixes in their tire size designation, 
which also appear on the sidewall of the tire:
    TR--Identifies tires for service on trucks or buses to 
differentiate them from similarly sized passenger car and light 
truck tires; and
    HC--Identifies a 17.5 inch rim diameter code for use on low 
platform trailers.
    All tires with a ``TR'' or ``HC'' suffix in their size 
designations are covered by this investigation regardless of their 
intended use.
    In addition, all tires that lack one of the above suffix 
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 ``Truck-Bus'' section of the Tire 
and Rim Association Year Book, as updated annually, unless the tire 
falls within one of the specific exclusions set out below.
    Truck and bus 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 truck and bus tires produced in the 
subject country whether mounted on wheels or rims in the subject 
country or in a third country. Truck and bus tires are covered 
whether or not they are accompanied by other parts, e.g., a wheel, 
rim, axle parts, bolts, nuts, etc. Truck and bus tires that enter 
attached to a vehicle are not covered by the scope.
    Specifically excluded from the scope of this investigation are 
the following types of tires: (1) Pneumatic tires, of rubber, that 
are not new, including recycled and retreaded tires; (2) non-
pneumatic tires, such as solid rubber tires; and (3) tires that 
exhibit each of the following physical characteristics: (a) The 
designation ``MH'' is molded into the tire's sidewall as part of the 
size designation; (b) the tire incorporates a warning, prominently 
molded on the sidewall, that the tire is for ``Mobile Home Use 
Only;'' and (c) the tire is of bias construction as evidenced by the 
fact that the construction code included in the size designation 
molded into the tire's sidewall is not the letter ``R.''
    The subject merchandise is currently classifiable under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 
4011.20.1015 and 4011.20.5020. Tires meeting the scope description 
may also enter under the following HTSUS subheadings: 4011.69.0020, 
4011.69.0090, 4011.70.00, 4011.90.80, 4011.99.4520, 4011.99.4590, 
4011.99.8520, 4011.99.8590, 8708.70.4530, 8708.70.6030, 
8708.70.6060, and 8716.90.5059.\4\
---------------------------------------------------------------------------

    \4\ On August 26, 2016, the Department included HTSUS 
subheadings 4011.69.0020, 4011.69.0090, and 8716.90.5059 to the case 
reference files, pursuant to requests by CBP and the petitioner. See 
Memorandum to the File entitled, ``Requests from Customs and Border 
Protection and the Petitioner to Update the ACE Case Reference 
File,'' dated August 26, 2016. On January 19, 2017, the Department 
included HTSUS subheadings 4011.70.00 and 4011.90.80 to the case 
reference files, pursuant to requests by CBP. See Memorandum to the 
File entitled, ``Requests from Customs and Border Protection to 
Update the ACE Case Reference File,'' dated January 19, 2017.
---------------------------------------------------------------------------

    While HTSUS subheadings are provided for convenience and for 
customs purposes, the written description of the subject merchandise 
is dispositive.

Appendix II--List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Critical Circumstances
V. Application of the Countervailing Duty Law to Imports from the 
PRC
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Interest Rate Benchmarks; Discount Rates; Input, Electricity, 
and Land Benchmarks
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether there is a Legal Basis for Investigating 
``Other'' and/or ``Discovered Subsidies
    Comment 2: Whether to Find Non-Use for the Export Buyer's Credit 
Program
    Comment 3: Whether the Department was Able to Verify Non-Use 
with Exporters for the Export Buyer's Credit Program
    Comment 4: Whether Information Provided by the Respondents is 
Sufficient for the Export Buyer's Credit Program
    Comment 5: Whether to Find the Export Buyer's Credit Program 
Countervailable as AFA
    Comment 6: Identification of an AFA Rate for the Export Buyer's 
Credit Program
    Comment 7: Whether to Adjust the Ocean Freight and Import Duties 
Included in the Benchmarks for the Input for LTAR Calculations
    Comment 8: Whether the Ocean Freight Data includes 
``Aberrational'' Prices
    Comment 9: Whether to Use Carbon Black World Market Prices 
Reported in US Dollars per MT
    Comment 10: Whether to Include Brokerage and Handling Costs in 
the Benchmarks for Carbon Black and Nylon Cord
    Comment 11: Whether to Average Benchmark Prices
    Comment 12: Whether to Use Actual Import Prices as the Benchmark 
for Measuring the Benefits from the Provision of Synthetic Rubber 
and Butadiene for LTAR
    Comment 13: Whether to Include in the Benefit Calculation 
Purchases of Synthetic Rubber and Butadiene Produced by a Russian 
Company
    Comment 14: Whether to Include in the Benefit Calculation 
Purchases of Inputs from Cross-Owned Affiliates
    Comment 15: Whether to Treat Double Coin as a Parent Company or 
a Producer for the Purposes of its Sales Denominator
    Comment 16: Whether to Adjust Double Coin's Sales Denominator
    Comment 17: Whether to Recognize Double Coin's 2016 Name Change
    Comment 18: Whether to Attribute to Double Coin Subsidies 
Received by Kunlun Engineering
    Comment 19: Whether to Attribute to Double Coin Subsidies 
Received by Tyre Research
    Comment 20: Whether to Adjust Guizhou Tyre's Sales Denominator
    Comment 21: Whether to Include Land Purchases from Affiliates in 
Calculating the Benefits from the Provision of Land for LTARs
    Comment 22: Whether to Conduct the 0.5 Percent Test on the Basis 
of all Land Purchases in 2009
    Comment 23: Whether to Adjust the Benchmarks Used in the 
Measuring the Benefit from the Provision of Land for LTARs
    Comment 24: Whether to Adjustments the Calculations for the 
Provision of Land for LTARs for Guizhou Tyre
    Comment 25: Whether to Include ``Fund'' Amounts in the 
Electricity Price Paid by Guizhou Tyre
    Comment 26: Whether to Adjust the Electricity Benchmark
    Comment 27: Whether the Department Should Have Accepted 
Additional Loan and Grant Information Presented by Guizhou Tyre at 
Verification
    Comment 28: Whether to Apply AFA to Guizhou Tyre Regarding its 
Government Policy Lending Program
    Comment 29: What AFA Rate to Apply to Guizhou Tyre's Government 
Policy Lending Program
    Comment 30: Whether to Apply AFA to Grants First Identified at 
Verification
    Comment 31: Whether to Defer to the First Administrative Review 
the Investigation of Grants Presented by Guizhou Tyre at 
Verification
    Comment 32: Whether to Exclude Mobile Home Tires
    Comment 33: Whether to Limit the Exclusion of Tires Attached to 
Vehicles
XI. Recommendation

[FR Doc. 2017-01862 Filed 1-26-17; 8:45 am]
BILLING CODE 3510-DS-P




The Crittenden Automotive Library