Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2014

Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2014

Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2014

Ronald K. Lorentzen
Department of Commerce
18 April 2017

[Federal Register Volume 82, Number 73 (Tuesday, April 18, 2017)]
[Notices]
[Pages 18285-18287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07807]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-913]

Certain New Pneumatic Off-the-Road Tires From the People's
Republic of China: Final Results of Countervailing Duty Administrative
Review; 2014

AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.

SUMMARY: On October 14, 2016, the Department published the preliminary
results of the administrative review of the countervailing duty order
on certain new pneumatic off-the-road tires (OTR Tires) from People's
Republic of China (PRC). This review covers 47 companies, only two of
which were selected as mandatory respondents: Guizhou Tyre Co., Ltd.
(Guizhou Tyre) and Xuzhou Xugong Tyres Co. Ltd. (Xuzhou Xugong). The
period of review (POR) is January 1, 2014, through December 31, 2014.
Based on an analysis of the comments received, the Department has made
changes to the subsidy rates that were preliminary determined for
Guizhou Tyre and Xuzhou Xugong. The final subsidy rates are listed in
the ``Final Results of Administrative Review'' section below.

DATES: Effective April 18, 2017.

FOR FURTHER INFORMATION CONTACT: Chien-Min Yang or Jun Jack Zhao, AD/
CVD Operations, Office VII, Enforcement and Compliance, U.S. Department
of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230;
telephone: (202) 482-5484 or (202) 482-1396.

Scope of the Order

The products covered by the scope are new pneumatic tires designed
for off-the-road (OTR) and off-highway use. The subject merchandise is
currently classifiable under Harmonized Tariff Schedule of the United
States (HTSUS) subheadings: 4011.20.10.25, 4011.20.10.35,
4011.20.50.30, 4011.20.50.50, 4011.70.0010, 4011.62.00.00,
4011.80.1020, 4011.90.10, 4011.70.0050, 4011.80.1010, 4011.80.1020,
4011.80.2010, 4011.80.2020, 4011.80.8010, and 4011.80.8020. While HTSUS
subheadings are provided for convenience and customs purposes, our
written description of the scope, which is contained in the
accompanying Issues and Decision Memorandum, is dispositive.\1\
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\1\ For a full description of the scope of the order, see
Memorandum from Gary Taverman, Associate Deputy Assistant Secretary
for Antidumping and Countervailing Duty Operations, to Ronald
Lorentzen, Acting Assistant Secretary for Enforcement and
Compliance,'' Issues and Decision Memorandum for the Final Results
in the Countervailing Duty Review of Certain New Pneumatic Off-the-
Road Tires from the People's Republic of China; 2014,'' dated
concurrently with this notice and herein incorporated by reference
(Issues and Decision Memorandum).
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Analysis of Comments Received

The issues raised by Guizhou Tyre, Xuzhou Xugong, Tianjin United
Tire & Rubber International Co., Ltd. (TUTRIC), the Government of the
People's Republic of China (GOC), and Titan Tire Corporation (Titan)
and the United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers International Union, AFL-
CIO-CLC (the USW) (collectively, the petitioners) in their case and
rebuttal briefs are addressed in the Issues and Decision Memorandum.\2\
The issues are identified in the Appendix to this notice. 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
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 on the Internet at http://trade.gov/enforcement/frn/index.html. The signed Issues and Decision
Memorandum and electronic versions of the Issues and Decision
Memorandum are identical in content.
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\2\ Id.
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Changes Since the Preliminary Results

The Department published the preliminary results of this
administrative review of OTR Tires from

[[Page 18286]]

PRC on October 14, 2016.\3\ Based on the comments received from all
interested parties, we made revisions to some of our benchmark and
benefit calculations for both Guizhou Tyre and Xuzhou Xugong. For a
discussion of these issues, see the Issues and Decision Memorandum.
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\3\ See Certain New Pneumatic Off-the-Road Tires From the
People's Republic of China: Preliminary Results of Countervailing
Duty Administrative Review; 2014, 81 FR 71056 (October 14, 2016)
(Preliminary Results).
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Methodology

The Department conducted this review in accordance with section
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each
of the subsidy programs found countervailable, we find that there is a
subsidy, i.e., a government-provided financial contribution that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\4\ For a description of the methodology underlying all of the
Department's conclusions, see the Issues and Decision Memorandum.
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\4\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and, section 771(5A) of the Act regarding specificity.
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Final Results of Administrative Review

In accordance with section 777A(e)(1) of the Act and 19 CFR
351.221(b)(5), we determine the total net countervailable subsidy rates
for the period January 1, 2014, through December 31, 2014 for each of
the mandatory respondents, Guizhou Tyre and Xuzhou Xugong. For the non-
selected respondents, we followed the Department's practice, which is
to base the subsidy rates on an average of the subsidy rates calculated
for those companies selected for individual review, excluding de
minimis rates or rates based on entirely on adverse facts available.\5\
In this case, we assigned to the non-selected respondents the simple
average of the rates calculated for Guizhou Tyre and Xuzhou Xugong. We
are using a simple, rather than a weighted, average due to inconsistent
units of measure in the publicly ranged quantity and value data
provided by Guizhou Tyre and Xuzhou Xugong. For a list of the non-
selected companies, please see Appendix II.
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\5\ See, e.g., Certain Pasta from Italy: Preliminary Results of
the 13th (2008) Countervailing Duty Administrative Review, 75 FR
18806, 18811 (April 13, 2010) unchanged in Certain Pasta from Italy:
Final Results of the 13th (2008) Countervailing Duty Adminstrative
Review, 75 FR 37386 (June 29, 2010).
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We find the countervaible subsidy rates for the producers/exporters
under review to be as follows:

------------------------------------------------------------------------
Subsidy rate
Manufacturer/exporter (percent ad
valorem)
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Guizhou Tyre Co., Ltd................................... 34.46
Xuzhou Xugong Tyres Co., Ltd............................ 46.01
Non Selected Companies.................................. 40.24
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Assessment and Cash Deposit Requirements

In accordance with 19 CFR 351.212(b)(2), the Department intends to
issue appropriate instructions to U.S. Customs and Border Protection
(CBP) 15 days after publication of the final results of this review.
The Department will instruct CBP to liquidate shipments of subject
merchandise produced and/or exported by the companies listed above,
entered or withdrawn from warehouse, for consumption from January 1,
2014, through December 31, 2014, at the percent rates, as listed above
for each of the respective companies, of the entered value.
The Department intends also to instruct CBP to collect cash
deposits of estimated countervailing duties, in the amounts shown above
for each of the respective companies shown above, on shipments of
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the date of publication of the final results of
this review. For all non-reviewed firms, we will instruct CBP to
continue to collect cash deposits at the most-recent company-specific
or all-others rate applicable to the company, as appropriate.
Accordingly, the cash deposit requirements that will be applied to
companies covered by this order, but not examined in this
administrative review, are those established in the most recently
completed segment of the proceeding for each company. These cash
deposit requirements, when imposed, shall remain in effect until
further notice.

Administrative Protective Order

This notice also serves as a final reminder to parties subject to
an administrative protective order (APO) of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which
continues to govern business proprietary information in this segment of
proceeding. 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.
These final results are issued and published in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.

Dated: April 12, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Issues and Decision
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation Information
A. Allocation Period
B. Attribution of Subsidies
C. Denominator
D. Creditworthiness
V. Benchmarks and Discount Rates
VI. Analysis of Programs
A. Programs Determined To Be Countervailable
B. Programs Determined To Be Not Used
C. Programs Determined To Provide No Benefit During the POR
VII. Analysis of Comments
Comment 1: Whether to Make Changes in LTAR Calculations
Comment 2: Whether to Change the Benchmark for Synthetic Rubber
Comment 3: Whether Brokerage and Handling Costs Should be
Included in LTAR Benchmarks for Nylon Cord and Carbon Black
Comment 4: Whether the Department Should Continue To Rely on a
Tier 2 Benchmark for Nylon Cord
Comment 5: Whether the ``Well-Know Brand Reward'' Benefit Should
be Calculated Using Xuzhou Xugong's Total Sales or Export Sales
Comment 6: Whether the Department Should Make Changes to Land
Purchases From Affiliates and Calculate a Benefit for Land Parcel #7
for Guizhou Tyre
Comment 7: Whether the VAT and Import Duty Exemptions Should be
Countervailable
Comment 8: The Sales Denominator Used To Calculate Guizhou Tyre
and Xuzhou Xugong
Comment 9: Whether to Countervail Additional Grants to Guizhou
Tyre
Comment 10: Whether the Department Should Find the Export
Buyer's Credit Program Used in This Case
VIII. Conclusion

Appendix II--Companies Not Selected for This Review

1. Air Sea Transport Inc.
2. Beijing Kang Jie Kong Intl Cargo Agent Co Ltd.
3. C&D Intl Freight Forward Inc.
4. Caesar Intl Logistics Co Ltd.
5. CD Intl Freight Forwarding.
6. Cheng Shin Rubber (Xiamen) Ind Ltd.
7. China Intl Freight Co Ltd.
8. Chonche Auto Double Happiness Tyre Corp Ltd.
9. City Ocean Logistics Co Ltd.
10. Consolidator Intl Co Ltd.
11. CTS Intl Logistics Corp.

[[Page 18287]]

12. De Well Container Shipping Inc.
13. England Logistics (Qingdao) Co Ltd.
14. Extra Type Co Ltd.
15. Fedex International Freight Forwarding Services Shanghai Co Ltd.
16. FG Intl Logistic Ltd.
17. JHJ Intl Transportation Co.
18. Kendra Rubber (China) Co Ltd.
19. Landmax Intl Co Ltd.
20. Orient Express Container Co Ltd.
21. Pudong Prime Intl Logistics Inc.
22. Qingdao Aotai Rubber Co Ltd.
23. Qingdao Chengtai Handtruck Co Ltd.
24. Qingdao Chuangtong Founding Co Ltd.
25. Qingdao Ftz Full-World Intl Trading Co Ltd.
26. Qingdao Haomai Hongyi Mold Co Ltd.
27. Qingdao Kaoyoung Intl Logistics Co Ltd.
28. Qingdao Milestone Tyres Co Ltd.
29. Qingdao Nexten Co Ltd.
30. Qingdao Wonderland.
31. Schenker China Ltd.
32. SGL Logistics South China Ltd.
33. Shanghai Grand South Intl Transportation Co Ltd.
34. Shanghai Hua Shen Imp & Exp Co Ltd.
35. Shanghai Part-Rich Auto Parts Co Ltd.
36. Thi Group (Shanghai) Ltd.
37. Tianjin United Tire & Rubber International Co., Ltd.
38. Toll Global Forwarding China Ltd.
39. Translink Shipping Inc.
40. Trelleborg Wheel Systems Hebei Co.
41. Universal Shipping Inc.
42. UTI China Ltd.
43. Weiss-Rohlig China Co Ltd.
44. World Bridge Logistics Co Ltd.

[FR Doc. 2017-07807 Filed 4-17-17; 8:45 am]
BILLING CODE 3510-DS-P