Certain New Pneumatic Off-The-Road Tires From Sri Lanka: Notice of Court Decision Not in Harmony With Final Affirmative Countervailing Duty Determination, Notice of Amended Final Determination and Revocation of Countervailing Duty Order

Gary Taverman
Department of Commerce
25 July 2018

[Federal Register Volume 83, Number 143 (Wednesday, July 25, 2018)]
[Notices]
[Pages 35213-35214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15879]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-542-801]


Certain New Pneumatic Off-The-Road Tires From Sri Lanka: Notice 
of Court Decision Not in Harmony With Final Affirmative Countervailing 
Duty Determination, Notice of Amended Final Determination and 
Revocation of Countervailing Duty Order

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

SUMMARY: On July 11, 2018, the United States Court of International 
Trade (CIT) entered its final judgment sustaining the final results of 
remand redetermination pursuant to court order by the Department of 
Commerce (Commerce) pertaining to the countervailing duty (CVD) 
investigation of certain new pneumatic off-the-road tires (off road 
tires) from Sri Lanka. Commerce is notifying the public that the final 
judgment in this case is not in harmony with Commerce's final 
determination in the CVD investigation of off road tires from Sri 
Lanka. Pursuant to the CIT's final judgment, the mandatory respondent 
in the CVD investigation of off road tires from Sri Lanka received a 
net countervailable subsidy rate of 1.23 percent, a rate that is de 
minimis and, therefore, Commerce is hereby revoking this order.

DATES: Applicable July 21, 2018.

FOR FURTHER INFORMATION CONTACT: Whitley Herndon, AD/CVD Operations, 
Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-6274.

SUPPLEMENTARY INFORMATION:

Background

    On January 10, 2017, Commerce published the Final Determination in 
this proceeding.\1\ Commerce reached an affirmative determination that 
countervailable subsidies were provided to mandatory respondent Camso 
Loadstar (Private), Ltd. (Camso Loadstar). Commerce published the 
countervailing duty order resulting from the investigation on March 6, 
2017.\2\
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    \1\ See Certain New Pneumatic Off-the-Road Tires from Sri Lanka: 
Final Affirmative Countervailing Duty Determination, and Final 
Determination of Critical Circumstances, 82 FR 2949, 2950 (January 
10, 2017) (Final Determination) and accompanying Issues and Decision 
Memorandum.
    \2\ See Certain New Pneumatic Off-the-Road Tires from India and 
Sri Lanka: Amended Final Affirmative Countervailing Duty 
Determination for India and Countervailing Duty Orders, 82 FR 12556 
(Mar. 6, 2017) (Order).
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    Camso Loadstar and the Government of Sri Lanka (GOSL) appealed the 
Final Determination and countervailing duty order to the CIT, and on 
April 17, 2018, the CIT remanded the Final Determination.\3\ 
Specifically, the CIT remanded the Final Determination directing 
Commerce to eliminate any duties attributable to the Guaranteed Price 
Scheme for Rubber (GPS) program based on mere reimbursement for 
excessive rubber payments.\4\ On June 13, 2016, Commerce issued its 
final results of redetermination pursuant to remand in accordance with 
the CIT's order.\5\ On remand, Commerce, under respectful protest,\6\ 
eliminated any duties attributable to the GPS program and recalculated 
the countervailable subsidy rate for Camso Loadstar accordingly. On 
July 11, 2018, the CIT sustained Commerce's Final Redetermination.\7\ 
Thus, the effective date of this notice is July 21, 2018.
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    \3\ See Government of Sri Lanka v. United States, Slip Op. 18-43 
(CIT Apr. 17, 2018).
    \4\ Id. at 20.
    \5\ See Final Results of Redetermination on Remand Pursuant to 
Government of Sri Lanka v. United States, Slip Op. 18-43 (CIT April 
17, 2018), dated June 13, 2016 (Final Redetermination). See also 
https://enforcement.trade.gov/remands/18-43.pdf.
    \6\ See Viraj Group, Ltd. v. United States, 343 F.3d 1371 (Fed. 
Cir. 2003).
    \7\ See Government of Sri Lanka v. United States, Slip Op. 18-
87, Consol. Court No. 17-00059 (CIT July 11, 2018) (Final Remand 
Order).
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Timken Notice

    In its decision in Timken,\8\ as clarified by Diamond Sawblades,\9\ 
the Court of Appeals for the Federal Circuit (Federal Circuit) held 
that, pursuant to section 516A of the Tariff Act of 1930, as amended 
(the Act), Commerce must publish a notice of court decision that is not 
``in harmony'' with a Commerce determination and must suspend 
liquidation of entries pending a ``conclusive'' court decision.\10\ The 
CIT's July 11, 2018, final judgment sustaining the Final 
Redetermination constitutes a final decision of that court that is not 
in harmony with Commerce's Final Determination. Thus, this notice is 
published in fulfillment of the publication requirements of Timken and 
section 516A of the Act.
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    \8\ See Timken Co. v. United States, 893 F.2d. 337 (Fed. Cir. 
1990) (Timken).
    \9\ See Diamond Sawblades Mfrs. Coalition v. United States, 626 
F.3d. 1374 (Fed. Cir. 2010) (Diamond Sawblades).
    \10\ See Sections 516A(c) and (e) of the Act.
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Amended Final Determination

    Because there is now a final court decision, Commerce is amending 
the Final Determination with respect to Camso Loadstar. The revised 
countervailable subsidy rate for Camso Loadstar for the period January 
1, 2015, through December 31, 2015, is as follows:

------------------------------------------------------------------------
           Exporter or producer                Subsidy rate (percent)
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Camso Loadstar (Private), Ltd               1.23 (de minimis).
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Revocation of the Order

    Pursuant to section 705(a)(3) of the Act, Commerce ``shall 
disregard any countervailable subsidy that is de minimis as defined in 
section 703(b)(4)'' of the Act. Furthermore, and pursuant to section 
705(c)(2) of the Act, ``the investigation shall be terminated upon 
publication of that negative

[[Page 35214]]

determination'' and Commerce shall ``terminate the suspension of 
liquidation'' and ``release any bond or other security, and refund any 
cash deposit.'' As a result of the CIT's decision affirming Commerce's 
Final Redetermination, Commerce is revoking the countervailing duty 
order on off road tires from Sri Lanka \11\ because the revised CVD 
margin for Camso Loadstar, the only mandatory respondent, is now de 
minimis.\12\ Because the revised net countervailable subsidy rate for 
the sole mandatory respondent, Camso Loadstar, is de minimis, Commerce 
did not determine an all-others rate in the Final Redetermination. 
Accordingly, Commerce intends to issue instructions to U.S. Customs and 
Border Protection (CBP) to release any bonds or other security and 
refund cash deposits pertaining to any suspended entries pursuant to 
the Order. As a result of this revocation, Commerce will not initiate 
administrative reviews of this Order.\13\
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    \11\ See Order, 82 FR at 12556.
    \12\ See section 703(b)(4)(B) of the Act; Developing and Least-
Developed Country Designations under the Countervailing Duty Law, 63 
FR 29945 (June 2, 1998).
    \13\ Commerce did not previously initiate any administrative 
review of the Order.
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    Although section 705(c)(2)(A) of the Act instructs Commerce to 
terminate suspension of liquidation, we note that, pursuant to Timken, 
the suspension of liquidation must continue during the pendency of the 
appeals process. Thus, we will continue to instruct CBP at this time to 
(A) release any bond or other security, and refund any cash deposit 
made pursuant to the Order as discussed above; and (B) suspend 
liquidation of all unliquidated entries of subject merchandise from Sri 
Lanka at a cash deposit rate of 0.00 percent which are entered, or 
withdrawn from warehouse, for consumption on or after July 21, 2018, 
which is ten days after the court's decision, in accordance with 
section 516A of the Act.\14\ In the event that the CIT's judgment 
affirming the Final Redetermination is not appealed, or appealed and 
upheld by the U.S. Court of Appeals for the Federal Circuit, Commerce 
will instruct CBP to terminate the suspension of liquidation and to 
liquidate those entries of subject merchandise without regard to 
countervailing duties. Notwithstanding the continued suspension 
described above, the countervailing duty order on off road tires from 
Sri Lanka is hereby revoked, as described above.
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    \14\ See, e.g., Drill Pipe from the People's Republic of China: 
Notice of Court Decision Not in Harmony with International Trade 
Commission's Injury Determination, Revocation of Antidumping and 
Countervailing Duty Orders Pursuant to Court Decision, and 
Discontinuation of Countervailing Duty Administrative Review, 79 FR 
78037, 78038 (December 29, 2014); High Pressure Steel Cylinders From 
the People's Republic of China: Notice of Court Decision Not in 
Harmony With Final Determination in Less Than Fair Value 
Investigation, Notice of Amended Final Determination Pursuant to 
Court Decision, Notice of Revocation of Antidumping Duty Order in 
Part, and Discontinuation of Fifth Antidumping Duty Administrative 
Review, 82 FR 46758, 46760 (October 6, 2017).
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    Lastly, we note that, at this time, Commerce remains enjoined by 
Court order from liquidating entries that were produced and/or exported 
by Camso Loadstar, and were entered, or withdrawn from warehouse, for 
consumption during the period June 20, 2016, through October 17, 2016, 
and from February 28, 2017, through December 31, 2017. These entries 
will remain enjoined pursuant to the terms of the injunction during the 
pendency of any appeals process.

Notification to Interested Parties

    This notice serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of the APO is a violation subject to 
sanction.
    This notice is issued and published in accordance with section 
516A(c)(1) and (e) of the Act.

    Dated: July 19, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-15879 Filed 7-24-18; 8:45 am]
 BILLING CODE 3510-DS-P