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Countervailing Duty Order on Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2017


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Countervailing Duty Order on Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2017

Jeffrey I. Kessler
Department of Commerce
23 April 2020 

[Federal Register Volume 85, Number 79 (Thursday, April 23, 2020)]
[Notices]
[Pages 22718-22720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08559]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-017]


Countervailing Duty Order on Certain Passenger Vehicle and Light 
Truck Tires From the People's Republic of China: Final Results of 
Countervailing Duty Administrative Review; 2017

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


[[Page 22719]]


SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers/exporters of 
passenger vehicle and light truck tires from the People's Republic of 
China (China) during the period of review (POR) January 1, 2017 through 
December 31, 2017.

DATES: Applicable April 23, 2020.

FOR FURTHER INFORMATION CONTACT: Andrew Huston, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4261.

Background

    Commerce published the Preliminary Results of this administrative 
review in the Federal Register on October 18, 2019.\1\ We invited 
interested parties to comment on the Preliminary Results. On December 
2, 2019, we received case briefs from the following interested parties: 
Cooper (Kunshan) Tire Co., Ltd. (Cooper); Shandong Longyue Rubber Co., 
Ltd. (Longyue); the Government of China (GOC); and Vogue Tyre & Rubber 
Co., Ltd., Sailun Jinyu Group Co., Ltd. and its affiliates, Sailun 
Jinyu Group (Hong Kong) Co., Limited, Sailun Tire International Corp., 
Shandong Jinyu Industrial Co., Ltd., Seatex International Inc., Seatex 
PTE. Ltd., Dynamic Tire Corp., and Husky Tire Corp., Shandong Wanda 
Boto Tyre Co., Ltd., and ITG Voma Corporation (collectively, Other 
Interested Parties). On December 13, 2019, the United Steel, Paper and 
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service 
Workers Union, AFL-CIO (the petitioner) submitted a rebuttal brief. On 
February 5, 2020, Commerce extended the period for issuing the final 
results of this review until April 15, 2020.\2\
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    \1\ See Certain Passenger Vehicle and Light Truck Tires from the 
People's Republic of China: Preliminary Results of Countervailing 
Duty Administrative Review and Rescission, in Part; 2017, 84 FR 
55913 (October 18, 2019) (Preliminary Results) and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Administrative Review of the 
Countervailing Duty Order on Passenger Vehicle and Light Truck Tires 
from the People's Republic of China: Extension of Deadline for Final 
Results,'' dated February 15, 2020.
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Scope of the Order

    The products covered by the order are certain passenger vehicle and 
light truck tires from the China. A full description of the scope of 
the order is contained in the Issues and Decision Memorandum.\3\
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    \3\ See ``Decision Memorandum for the Final Results of the 
Administrative Review of the Countervailing Duty Order on Certain 
Passenger Vehicle and Light Truck Tires from the People's Republic 
of China; 2017,'' dated concurrently with this notice (Issues and 
Decision Memorandum) and hereby adopted by this notice.
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Analysis of Comments Received

    All issues raised in interested parties' briefs are addressed in 
the Issues and Decision Memorandum accompanying this notice. A list of 
the issues raised by interested parties and to which we responded in 
the Issues and Decision Memorandum is provided in Appendix I 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 https://access.trade.gov. In 
addition, a complete version of the Issues and Decision Memorandum can 
be access directly at http://enforcement.trade.gov/frn/. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Changes Since the Preliminary Results

    Based on case briefs and evidence on the record, we made certain 
changes from the Preliminary Results. Commerce has changed the carbon 
black benchmark for both respondents, adjusted the denominator used for 
subsidies received by Cooper's affiliate Qingdao Ge Rui Da Rubber Co., 
Ltd., and corrected various ministerial errors for both respondents. 
These changes are explained in the Issues and Decision Memorandum.

Methodology

    Commerce 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 to be countervailable, we find that there 
is a subsidy, i.e., a financial contribution from a government or 
public entity that gives rise to a benefit to the recipient, and that 
the subsidy is specific.\4\ For a full description of the methodology 
underlying all of Commerce's conclusions, including any determination 
that relied upon the use of adverse facts available pursuant to 
sections 776(a) and (b) of the Act, 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 19 CFR 351.221(b)(5), we calculated a 
countervailable subsidy rate for the mandatory respondents, Cooper and 
Longyue. For the non-selected companies subject to this review,\5\ we 
followed Commerce'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 
entirely on adverse facts available.\6\ In this case, for the non-
selected companies, we have calculated a rate by weight-averaging the 
calculated subsidy rates of Cooper and Longyue using their publicly-
ranged sales data for exports of subject merchandise to the United 
States during the POR. We find the countervailable subsidy rates for 
the producers/exporters under review to be as follows:
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    \5\ See Appendix II.
    \6\ 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 
Administrative Review, 75 FR 37386 (June 29, 2010).

------------------------------------------------------------------------
                                                                Subsidy
                           Company                             rate (%)
------------------------------------------------------------------------
Cooper (Kunshan) Tire Co., Ltd. (Cooper) \7\................       17.15
Shandong Longyue Rubber Co., Ltd. (Longyue).................       27.00
Non-Selected Companies Under Review \8\.....................       20.05
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Disclosure
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    \7\ As discussed in the Preliminary Results PDM, Cooper is 
cross-owned with Cooper Tire Asia-Pacific (Shanghai) Trading Co., 
Ltd., Cooper Tire (China) Investment Co. Ltd., and Qingdao Ge Rui Da 
Rubber Co., Ltd.
    \8\ See Appendix II.
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    We will disclose to the parties in this proceeding the calculations 
performed for these final results within five days of the date of 
publication of this notice in the Federal Register.\9\
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    \9\ See 19 CFR 351.224(b).
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Assessment Rates

    Consistent with 19 CFR 351.212(b)(2), we intend to issue assessment 
instructions to U.S. Customs and Border Protection (CBP) 15 days after 
the date of publication of these final results of review, to liquidate 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption, on or after January 1, 2017 through December 31, 2017, 
at the ad valorem rates listed above.

Cash Deposit Instructions

    In accordance with section 751(a)(1) of the Act, we intend to 
instruct CBP to collect cash deposits of estimated countervailing 
duties in the amounts shown for each of the respective

[[Page 22720]]

companies listed above. These cash deposit requirements, when imposed, 
shall remain in effect until further notice.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective order (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 or 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 sanctionable 
violation.

Notification to Interested Parties

    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: April 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. List of Comments From Interested Parties
IV. Scope of the Order
V. Changes Since the Preliminary Results
VI. Non-Selected Companies Under Review
VII. Subsidies Valuation Information
    1. Allocation Period
    2. Attribution of Subsidies
    3. Denominators
    4. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Programs Determined To Be Countervailable
X. Programs Determined Not To Be Used or Not To Confer Measurable 
Benefits During the POR
XI. Analysis of Comments
    Comment 1: Government Policy Lending Calculation
    Comment 2: Uncreditworthy Benchmark Interest Rate
    Comment 3: Export Buyer's Credit (EBC), Usage by Respondents
    Comment 4: Export Buyer's Credit, AFA Rate
    Comment 5: Carbon Black Market Distortion
    Comment 6: Carbon Black Benchmark, Tier 2 Data Issues
    Comment 7: Ocean Freight and Import Duties Added to Tier 1 or 
Tier 2 Benchmarks
    Comment 8: Other Subsidies
    Comment 9: Inland Freight Expenses for Cooper and GRT's Carbon 
Black Benchmark
    Comment 10: Cooper's Loan Benefit Calculation
    Comment 11: GRT's Subsidies
    Comment 12: GRT Land Benefit Calculation
    Comment 13: GRT's Grant Benefit Calculation
    Comment 14: Longyue's Loan Benchmarks
    Comment 15: Longyue's Land Benefit Calculation
XII. Recommendation
Appendix--Non-Selected Companies Under Review

Appendix II

Non-Selected Companies Under Review

1. Anhui Jichi Tire Co., Ltd.
2. Bridgestone (Tianjin) Tire Co., Ltd.
3. Bridgestone Corporation
4. Dynamic Tire Corp.
5. Hankook Tire China Co., Ltd.
6. Husky Tire Corp.
7. Jiangsu Hankook Tire Co., Ltd.
8. Mayrun Tyre (Hong Kong) Limited
9. Qingdao Fullrun Tyre Corp., Ltd.
10. Qingdao Sunfulcess Tyre Co., Ltd.\10\
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    \10\ This company was mistakenly listed in the Initiation of 
Antidumping and Countervailing Duty Administrative Reviews, 83 FR 
50077 (October 4, 2018), and Preliminary Results as Qingdao 
Sunfulcess Trye Co., Ltd.
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11. Sailun Jinyu Group Co., Ltd.
12. Sailun Jinyu Group (Hong Kong) Co., Limited
13. Sailun Tire International Corp.
14. Seatex International Inc.
15. Seatex PTE, Ltd.
16. Shandong Achi Tyres Co., Ltd.
17. Shandong Anchi Tyres Co., Ltd.
18. Shandong Duratti Rubber Corporation Co., Ltd.
19. Shandong Haohua Tire Co., Ltd.
20. Shandong Hengyu Science & Technology Co., Ltd.
21. Shandong Jinyu Industrial Co., Ltd.
22. Shandong Province Sanli Tire Manufactured Co., Ltd.
23. Shandong Wanda Boto Tyre Co., Ltd.
24. Triangle Tyre Co., Ltd.
25. Winrun Tyre Co., Ltd.

[FR Doc. 2020-08559 Filed 4-22-20; 8:45 am]
 BILLING CODE 3510-DS-P




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