Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2016-2017

Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2016-2017

Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2016-2017

Jeffrey I. Kessler
Department of Commerce
26 April 2019

[Federal Register Volume 84, Number 81 (Friday, April 26, 2019)]
[Notices]
[Pages 17781-17784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08454]

[[Page 17781]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-016]

Certain Passenger Vehicle and Light Truck Tires From the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review and Final Determination of No Shipments; 2016-2017

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

SUMMARY: The Department of Commerce (Commerce) determines that
manufacturers/exporters of certain passenger vehicle and light truck
tires (passenger tires) from the People's Republic of China (China),
sold subject merchandise in the United States at prices below normal
value (NV) during the period of review (POR) August 1, 2016, through
July 31, 2017.

DATES: Applicable April 26, 2019

FOR FURTHER INFORMATION CONTACT: Toni Page, 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) 482-1398.

SUPPLEMENTARY INFORMATION:

Background

Commerce published the Preliminary Results of this administrative
review on September 11, 2018.\1\ We invited interested parties to
comment on the Preliminary Results. Subsequent to the Preliminary
Results, several separate rate entities sought to withdraw their
requests for administrative review.\2\ Between November 6 and 8, 2018,
the petitioner (United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union, AFL-CIO, CLC (the USW)); Zhaoqing Junhong Co., Ltd
(Junhong) (mandatory respondent); and various separate rate entities
submitted case briefs.\3\ On November 15, 2018, certain separate rate
respondents submitted rebuttal briefs.\4\
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\1\ See Certain Passenger Vehicle and Light Truck Tires from the
People's Republic of China: Preliminary Results of Antidumping Duty
Administrative Review, Preliminary Determination of No Shipments,
and Rescission, in Part; 2016-2017, 83 FR 45893 (September 11, 2018)
and accompanying Preliminary Decision Memorandum (PDM) (Preliminary
Results).
\2\ See Winrun's Letter, ``Withdrawal of Request for AD
Administrative Review and Request for Rescission Passenger Vehicle
and Light Truck Tires from China,'' dated October 2, 2018 (Winrun
Withdrawal Request); see also (1) Qingdao Sentury Tyre Co.; (2)
Shandong Linglong Tyre Co.; (3) Hongkong Tiancheng Investment &
Trading Co., Limited; (4) Shandong New Continent Tire Co., Ltd.; (5)
YC Rubber Co. (North America) LLC; and (6) Sutong Tire Resources,
Inc.'s Letter, ``GDLSK Respondents' Request to Extend Time to File
Withdrawal of Review Requests and Request for Rescission of Review
in the 2nd Administrative Review of the Antidumping Duty Order on
Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China (POR 2: 8/1/16-7/31/17),'' dated October 25, 2018
(Sentury et al. Withdrawal Requests); Shandong Hengyu's Letter,
``Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China--Withdrawal of Request for Administrative Review
and Request for Rescission,'' dated November 6, 2018 (Shandong
Hengyu Withdrawal Request); Qingdao Odyking Tyre Co., Ltd., Shandong
Shuangwang Rubber Co., Ltd., and Shouguang Firemax Tyre Co., Ltd.'s
Letter, ``Certain Passenger Vehicle and Light Truck Tires from the
People's Republic of China--Withdrawal of Request for Administrative
Review and Request for Rescission,'' dated November 6, 2018 (Odyking
et al. Withdrawal Requests); and American Pacific Industries, Inc.'s
Letter, ``Passenger Vehicle and Light Truck Tires from People's
Republic of China Re: Withdrawal of Request for Administrative
Review,'' dated November 9, 2018 (API Withdrawal Request).
\3\ See Petitioner's Case Brief, ``Case Brief Submitted on
Behalf of the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union, AFL-CIO, CLC,'' dated November 8, 2018
(Petitioner's Case Brief); see also Junhong's Case Brief, ``Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China: Case Brief of Zhaoqing Junhong Co., Ltd.,'' dated November
8, 2018 (Junhong's Case Brief); Crown International Corporation,
``Passenger Vehicle and Light Truck Tires from the People's Republic
of China, 2nd Administrative Review; Comments of Crown International
Corporation on the Preliminary Results,'' dated November 8, 2018
(Crown's Comments); Hankook Tire China Co., Ltd., ``Passenger
Vehicle and Light Truck Tires from China, Case No. A-570-016: Letter
in Lieu of Case Brief,'' dated November 8, 2018 (Hankook's
Comments); Hongkong Tiancheng Investment & Trading Co., Limited,
``HK Tiancheng Case Brief in the 2nd Administrative Review of the
Antidumping Duty Order on Certain Passenger Vehicle and Light Truck
Tires from the People's Republic of China (POR 2: 8/1/16-7/31/17),''
dated November 8, 2018 (HK Tiancheng's Case Brief); Shandong Hengyu
Science & Technology Co., Ltd., ``Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China -Case Brief,''
dated November 6, 2018 (Shandong Hengyu's Case Brief); Shandong
Anchi Tyres Co., Ltd., Shandong Longyue Rubber Co., Ltd., Shandong
Province Sanli Tire Manufactured Co., Ltd., and Mayrun Tyre (Hong
Kong) Limited Comments, ``Passenger Vehicle and Light Truck Tires
from China Comments in Lieu of Case Brief,'' dated November 8, 2018
(Shandong Anchi et al.'s Comments); Shandong Wanda Boto Tyre Co.
Ltd. (Boto) and ITG Voma Corporation (ITG Voma) Case Brief,
``Passenger Vehicle and Light Truck Tires from the People's Republic
of China: Case Brief of Shandong Wanda Boto Tyre Co. Ltd. and ITG
Voma Corporation,'' dated November 8, 2018 (Boto's & ITG Voma's Case
Brief); Qingdao Sentury Tyre Co., Shandong Linglong Tyre Co.,
Hongkong Tiancheng Investment & Trading Co., Limited, Shandong New
Continent Tire Co., Ltd., YC Rubber Co. (North America) LLC, and
Sutong Tire Resources, Inc., ``GDLSK Clients' Case Brief in the 2nd
Administrative Review of the Antidumping Duty Order on Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China (POR 2: 8/1/16-7/31/17),'' dated November 8, 2018 (Sentury
et al.'s Case Brief); and Winrun Tyre Co., Ltd., ``Winrun's Case
Brief: Passenger Vehicle and Light Truck Tires from China,'' dated
November 8, 2018 (Winrun's Case Brief).
\4\ See Winrun's Letter, ``Letter In Lieu Of Rebuttal Brief
Passenger Vehicle and Light Truck Tires from China,'' dated November
15, 2018 (Winrun's Rebuttal Comments); see also Shandong Anchi et
al.'s Letter, ``Passenger Vehicle and Light Truck Tires from China-
Rebuttal Letter in Lieu of Brief,'' dated November 15, 2018
(Shandong Anchi et al.'s Rebuttal Comments); and Sentury et al.'s
Rebuttal Brief, ``GDLSK Clients' Rebuttal Brief in the 2nd
Administrative Review of the Antidumping Duty Order on Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China (POR 2: 8/1/16-7/31/17),'' dated November 15, 2018 (Sentury
et al.'s Rebuttal Brief).
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Commerce exercised its discretion to toll all deadlines affected by
the partial federal government closure from December 22, 2018, through
the resumption of operations on January 29, 2019.\5\ This extended the
deadline for the final results to February 19, 2019. On January 31,
2019, Commerce fully extended the deadline for the final results until
April 19, 2019.\6\
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\5\ See Memorandum to the Record from 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, ``Deadlines
Affected by the Partial Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
\6\ See Memorandum, ``2016-2017 Antidumping Duty Administrative
Review of Certain Passenger Vehicle and Light Truck Tires from the
People's Republic of China: Extension of Deadline for Final Results
of Antidumping Duty Administrative Review,'' dated January 31, 2019.
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Scope of the Order

The scope of the order is passenger vehicle and light truck tires.
Passenger vehicle and light truck tires are new pneumatic tires, of
rubber, with a passenger vehicle or light truck size designation.\7\
Merchandise covered by this order is classifiable under subheadings
4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40,
4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00,
4011.20.10.05, 4011.20.50.10, 4011.99.45.10, 4011.99.45.50,
4011.99.85.10, 4011.99.85.50, 8708.70.45.45, 8708.70.45.60,
8708.70.60.30, 8708.70.60.45, and 8708.70.60.60 of the Harmonized
Tariff Schedule of the United States (HTSUS). Although the HTSUS
subheadings are provided for convenience and customs purposes, our
written description of the scope of the order is dispositive.
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\7\ For a complete description of the scope of the order, see
``Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China: Issues and Decision Memorandum for the Final
Results of the 2016-2017 Antidumping Duty Administrative Review,''
(April 19, 2019) (Issues and Decision Memorandum) at ``Scope of the
Order.''

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[[Page 17782]]

Analysis of Comments Received

All issues raised in the case and rebuttal briefs are addressed in
the accompanying Issues and Decision Memorandum, which is hereby
adopted by this notice.\8\ The issues are identified 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 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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\8\ See Issues and Decision Memorandum at ``Discussion of the
Issues.''
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Final Determination of No Shipments

In the Preliminary Results, Commerce preliminarily determined that
Federal Tire (Jiangxi), Ltd. and Highpoint Trading, Ltd. each had no
shipments during the POR.\9\ As we have not received any information to
contradict our preliminary finding, we determine that these entities
did not have any shipments of subject merchandise during the POR. We
will issue appropriate instructions that are consistent with our
``automatic assessment'' clarification, for these final results.\10\
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\9\ See Preliminary Results 83 FR 45893, 45894.
\10\ See Non-Market Economy Antidumping Proceedings: Assessment
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011)
(Assessment Notice); see also ``Assessment Rates'' section of this
notice.
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Changes Since the Preliminary Results

Based on our analysis of the comments received and the record, we
made certain changes to the Preliminary Results. Specifically, we have
made adjustments to the calculation of the antidumping margin for
Junhong; \11\ and granted a separate rate to certain additional
companies.\12\
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\11\ See Issues and Decision Memorandum at comments 5 and 6; and
Memorandum, ``Administrative Review of Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China: Final
Analysis Memorandum for Zhaoqing Junhong Co., Ltd.,'' dated
concurrently with the instant memorandum (Junhong Final Calculation
Memorandum).
\12\ See Issues and Decision Memorandum at comment 7, see also
Memorandum, ``Antidumping Duty Administrative Review of Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China: Final Separate Rate Status,'' dated concurrently with the
instant memorandum (Final Separate Rate Memorandum).
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Separate Rates

In the Preliminary Results, we found that evidence provided by
mandatory respondent, Zhaoqing Junhong Co., Ltd. (Junhong), as well as
by other companies, supported finding an absence of both de jure and de
facto government control, and, therefore, we preliminarily granted a
separate rate to each of these companies.\13\ We received no
information since the issuance of the Preliminary Results that provides
a basis for reconsidering these determinations with respect to the
separate rate status of these exporters. Therefore, for the final
results, we continue to find that these entities are eligible for
separate rates.
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\13\ See Preliminary Results 83 FR 45893, 45895.
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In addition, Commerce listed BC Tyre Group Limited/Best Choice
International Trade Co., Limited, Crown International Corporation,
Hankook Tire China Co., Ltd., and Hong Kong Tiancheng Investment &
Trading Co., Limited as not qualifying for separate rate status in the
Preliminary Results.\14\ As discussed in more detail in the
accompanying Issues and Decision Memorandum and/or the Final Separate
Rate Memorandum, we find that these entities are eligible for separate
rates and Appendix II below has been revised for these final results.
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\14\ Id. at 45897.
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Further, Commerce continues to find that certain entities failed to
demonstrate an absence of de jure and/or de facto government control,
and, thus, are not eligible for separate rates. A list of entities that
are not entitled to separate rate status for this administrative review
are included in Appendix 2 of this notice.

Adjustments for Export Subsidies and Double-Remedies

Pursuant to section 772(c)(1)(C) of the Tariff Act of 1930, as
amended (the Act), Commerce has adjusted Junhong's U.S. price for
export subsidies. In addition, pursuant to sections 777A(f)(1)(A)-(C)
of the Act, Commerce has adjusted Junhong's U.S. price for domestic
subsidies passed through for these final results. Since Junhong's
antidumping duty rate is assigned to the non-examined exporters which
qualify for a separate rate, the export subsidy and double-remedy
adjustments are also reflected in their rates.

Final Results of Review

Commerce finds that the following weighted-average dumping margins
exist for the POR:

------------------------------------------------------------------------
Weighted-
average
Exporter dumping margin
(percent)
------------------------------------------------------------------------
Zhaoqing Junhong Co., Ltd............................... 64.57
BC Tyre Group Limited/Best Choice International Trade 64.57
Co., Limited...........................................
Crown International Corporation......................... 64.57
Hankook Tire China Co., Ltd............................. 64.57
Hong Kong Tiancheng Investment & Trading Co., Limited... 64.57
Jiangsu Hankook Tire Co., Ltd........................... 64.57
Kenda Rubber (China) Co., Ltd........................... 64.57
Mayrun Tyre (Hong Kong) Limited......................... 64.57
Qingdao Odyking Tyre Co., Ltd........................... 64.57
Qingdao Sentury Tire Co., Ltd./Sentury Tire USA Inc./ 64.57
Sentury (Hong Kong) Trading Co., Limited...............
Shandong Anchi Tyres Co., Ltd........................... 64.57
Shandong Hengyu Science & Technology Co., Ltd........... 64.57
Shandong Linglong Tyre Co., Ltd......................... 64.57
Shandong Longyue Rubber Co., Ltd........................ 64.57
Shandong New Continent Tire Co., Ltd.................... 64.57
Shandong Province Sanli Tire Manufactured Co., Ltd...... 64.57

[[Page 17783]]

Shandong Shuangwang Rubber Co., Ltd..................... 64.57
Shandong Wanda Boto Tyre Co., Ltd....................... 64.57
Shandong Yongsheng Rubber Group Co., Ltd................ 64.57
Shouguang Firemax Tyre Co., Ltd......................... 64.57
Winrun Tyre Co., Ltd.................................... 64.57
------------------------------------------------------------------------

Assessment Rates

Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b),
Commerce has determined, and U.S. Customs and Border Protection (CBP)
shall assess, antidumping duties on all appropriate entries of subject
merchandise in accordance with the final results of this review.
Commerce intends to issue appropriate assessment instructions directly
to CBP 15 days after publication of the final results of this
administrative review. For each individually examined respondent in
this review whose weighted-average dumping margin in the final results
of review is not zero or de minimis (i.e., less than 0.5 percent),
Commerce intends to calculate importer-specific assessment rates, in
accordance with 19 CFR 351.212(b)(1).\15\ Where the respondent reported
reliable entered values, Commerce intends to calculate importer-
specific ad valorem assessment rates by aggregating the amount of
dumping calculated for all U.S. sales to the importer, and dividing
this amount by the total entered value of the sales to the
importer.\16\ Where the importer did not report entered values,
Commerce intends to calculate an importer-specific assessment rate by
dividing the amount of dumping for reviewed sales to the importer by
the total sales quantity associated with those transactions. Where an
importer-specific ad valorem assessment rate is not zero or de minimis,
Commerce will instruct CBP to collect the appropriate duties at the
time of liquidation. Where either the respondent's weighted average
dumping margin is zero or de minimis, or an importer-specific ad
valorem assessment rate is zero or de minimis, Commerce will instruct
CBP to liquidate appropriate entries without regard to antidumping
duties.\17\ We intend to instruct CBP to liquidate entries containing
subject merchandise exported by the China-wide entity at the China-wide
rate.
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\15\ See Antidumping Proceedings: Calculation of the Weighted
Average Dumping Margin and Assessment Rate in Certain Antidumping
Proceedings: Final Modification, 77 FR 8101 (February 14, 2012)
(Final Modification).
\16\ See 19 CFR 351.212(b)(1).
\17\ See Final Modification, 77 FR 8101, 8103.
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Pursuant to Commerce practice, for entries that were not reported
in the U.S. sales database submitted by an exporter individually
examined during this review, Commerce will instruct CBP to liquidate
such entries at the rate for the China-wide entity.\18\ Additionally,
if Commerce determines that an exporter under review had no shipments
of the subject merchandise, any suspended entries that entered under
that exporter's CBP case number will be liquidated at the rate for the
China-wide entity.
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\18\ See Non-Market Economy Antidumping Proceedings: Assessment
of Antidumping Duties, 76 FR 65694 (October 24, 2011), for a full
discussion of this practice.
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In accordance with section 751(a)(2)(C) of the Act, the final
results of this review shall be the basis for the assessment of
antidumping duties on POR entries, and for future deposits of estimated
antidumping duties, where applicable.

Cash Deposit Requirements

Commerce will instruct CBP to require a cash deposit for
antidumping duties equal to the weighted-average amount by which NV
exceeds U.S. price. The following cash deposit requirements will be
effective upon publication of the final results of this administrative
review for shipments of the subject merchandise from China entered, or
withdrawn from warehouse, for consumption on or after the publication
date of this notice, as provided by section 751(a)(2)(C) of the Act:
(1) For the exporters listed above, the cash deposit rate will be equal
to the weighted-average dumping margin established in the final results
of this review; (2) for previously investigated or reviewed China and
non- China exporters not listed above that have separate rates, the
cash deposit rate will continue to be the exporter-specific rate
published for the most recently completed segment of this proceeding;
(3) for all China exporters of subject merchandise which have not been
found to be entitled to a separate rate, the cash deposit rate will be
the rate for the China-wide entity (i.e., 76.46 percent) \19\ and (4)
for all non-China exporters of subject merchandise that have not
received their own rate, the cash deposit rate will be the rate
applicable to the China exporter that supplied that non- China
exporter. These deposit requirements, when imposed, shall remain in
effect until further notice.
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\19\ See Certain Passenger Vehicle and Light Truck Tires from
the People's Republic of China: Amended Final Affirmative
Antidumping Duty Determination and Antidumping Duty Order; and
Amended Final Affirmative Countervailing Duty Determination and
Countervailing Duty Order, 80 FR 47902, 47904 at note 19 (August 10,
2015).
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Notification to Importers

This notice also serves as a reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties and/or countervailing
duties prior to liquidation of the relevant entries during this POR.
Failure to comply with this requirement could result in Commerce's
presumption that reimbursement of antidumping duties and/or
countervailing duties has occurred, and the subsequent assessment of
double antidumping duties and/or an increase in the amount of
antidumping duties by the amount of the countervailing duties.

Notifications to Interested Parties

This notice serves as the only 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 return or destruction of APO materials, or conversion
to judicial protective order, is hereby requested. Failure to comply
with the regulations and the terms of an APO is a sanctionable
violation.
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.

[[Page 17784]]

Dated: April 19, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix 1

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Changes Since the Preliminary Results
V. Discussion of the Issues:
Comment 1: Whether Commerce should allow certain separate rate
respondents to withdraw from this administrative review after the
90-day deadline.
Comment 2: Whether Commerce should base the margin assigned to
separate rate respondents solely on Junhong's margin.
Comment 3: Whether Commerce should have selected a third
mandatory respondent.
Comment 4: Whether Commerce should exclude certain information
from countries that maintain generally available export subsidies.
Comment 5: Whether Commerce should offset Junhong's AD margin
for the Export Buyer's Credit program.
Comment 6: Whether Commerce properly valued Junhong's energy
inputs.
Comment 7: Whether to grant Crown, Hankook, and HK Tiancheng a
separate rate for the Final Results.
VI. Recommendation

Appendix 2

List of Companies Not Receiving Separate Rate Status

1. Cheng Shin Tire & Rubber (China) Co., Ltd.
2. Hebei Tianrui Rubber Co., Ltd.
3. Hong Kong Tri-Ace Tire Co., Limited
4. Hwa Fong Rubber (Hong Kong) Ltd.
5. Hwa Fong Rubber (Suzhou) Ltd.
6. Qingdao Fullrun Tyre Corp. Ltd.
7. Qingdao Fullrun Tyre Tech Corp. Ltd.
8. Qingdao Nexen Tire Corporation
9. Qingdao Qianzhen Tyre Co., Ltd.
10. Qingdao Qihang Tyre Co., Ltd.
11. Qingdao Qizhou Rubber Co., Ltd.
12. Shandong Haohua Tire Co., Ltd.
13. Shandong Haolong Rubber Tire Co., Ltd.
14. Shandong Haolong Rubber Co., Ltd.
15. Shandong Province Sanli Tire
16. Shifeng Juxing Tire Co., Ltd.
17. Southeast Mariner International Co., Ltd.
18. Toyo Tire (Zhangjiagang) Co., Ltd.

[FR Doc. 2019-08454 Filed 4-25-19; 8:45 am]
BILLING CODE 3510-DS-P