Truck and Bus Tires From the People's Republic of China: Final Affirmative Countervailing Duty Determination, Final Affirmative Critical Circumstances Determination, in Part |
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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]
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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.
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\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.
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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\
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\3\ See Memorandum to the File, ``Calculation of the All-Others
Rate'' dated concurrently with this final determination.
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We determine the countervailable subsidy rates to be:
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Subsidy Rate
Company (percent)
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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
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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\
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\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.
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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