Passenger Vehicle and Light Truck Tires From the Republic of Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations |
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Joseph A. Laroski Jr.
Department of Commerce
29 June 2020
[Federal Register Volume 85, Number 125 (Monday, June 29, 2020)]
[Notices]
[Pages 38854-38860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13958]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-908, A-583-869, A-549-842, A-552-828]
Passenger Vehicle and Light Truck Tires From the Republic of
Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam:
Initiation of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable June 22, 2020.
FOR FURTHER INFORMATION CONTACT: Alex Villanueva; 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) 482-3208.
SUPPLEMENTARY INFORMATION:
The Petitions
On May 13, 2020, the Department of Commerce (Commerce) received
antidumping duty (AD) petitions concerning imports of passenger vehicle
and light truck tires (passenger tires) from the Republic of Korea
(Korea), Taiwan, Thailand, and the Socialist Republic of Vietnam
(Vietnam) filed in proper form on behalf of the United Steel, Paper and
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service
Workers International Union, AFL-CIO, CLC (the petitioner).\1\ The
Petitions were accompanied by a countervailing duty (CVD) petition
concerning imports of passenger tires from Vietnam.\2\
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\1\ See Petitioner's Letter, ``Passenger Vehicle and Light Truck
Tires from the Republic of Korea, Taiwan, Thailand, and the
Socialist Republic of Vietnam--Petition for the Imposition of
Antidumping and Countervailing Duties,'' dated May 13, 2020 (the
Petitions).
\2\ Id.
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Between May 18 and 22, 2020, Commerce requested supplemental
information pertaining to certain aspects of the Petitions in separate
supplemental questionnaires.\3\ The petitioner filed responses to the
[[Page 38855]]
supplemental questionnaires between May 20 and 26, 2020.\4\
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\3\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping Duties on Imports of Passenger Vehicle and Light Truck
Tires from Korea, Taiwan, Thailand, and Vietnam: Supplemental
Questions,'' dated May 18, 2020; and ``Country-Specific Supplemental
Questionnaires: Korea Supplemental, Thailand Supplemental, Taiwan
Supplemental, Vietnam Supplemental,'' dated May 18, 2020; see also
``Petition for the Imposition of Antidumping Duties on Imports of
Passenger Vehicle and Light Truck Tires from the Thailand: Second
Supplemental Questionnaire,'' dated May 21, 2020.
\4\ See Petitioner's Country-Specific Supplemental Responses,
dated May 20, 2020; see also Petitioner's Letter, ``Passenger
Vehicle and Light Truck Tires from the Korea, Taiwan, Thailand, and
Vietnam--Petitioner's Amendment to Volume I Concerning General
Issues,'' dated May 20, 2020 (General Issues Supplement); and
Petitioner's ``Thailand Second Supplemental Responses,'' dated May
22, 2020.
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On May 21, 2020, Commerce extended the initiation deadline by 20
days to poll the domestic industry in accordance with section
702(c)(4)(D) of the Act, because it was not ``clear from the Petitions
whether the industry support criteria have been met . . . . '' \5\
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\5\ See Notice of Extension of the Deadline for Determining the
Adequacy of the Antidumping and Countervailing Duty Petitions:
Passenger Vehicle and Light Truck Tires from Korea, Taiwan,
Thailand, and Vietnam, 85 FR 32013 (May 28, 2020) (Initiation
Extension Notice).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of passenger
tires from Korea, Taiwan, Thailand, and Vietnam are being, or are
likely to be, sold in the United States at less than fair value (LTFV)
within the meaning of section 731 of the Act, and that imports of such
products are materially injuring, or threatening material injury to,
the passenger tires industry in the United States. Consistent with
section 732(b)(1) of the Act, the Petitions are accompanied by
information reasonably available to the petitioner supporting its
allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(D) of the Act. Commerce also finds that
the petitioner has demonstrated sufficient industry support for the
initiation of the requested AD investigations.\6\
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\6\ See infra, section on ``Determination of Industry Support
for the Petitions.''
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Periods of Investigation
Because the Petitions were filed on May 13, 2020, the period of
investigation (POI) for the Korea, Thailand, and Taiwan investigations
is April 1, 2019 through March 31, 2020, and the POI for the Vietnam
investigation is October 1, 2019 through March 31, 2020, pursuant to 19
CFR 351.204(b)(1).\7\
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\7\ See 19 CFR 351.204(b)(1).
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Scope of the Investigations
The products covered by these investigations are passenger tires
from Korea, Taiwan, Thailand, and Vietnam. For a full description of
the scope of these investigations, see the Appendix to this notice.
Comments on the Scope of the Investigations
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\8\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information,\9\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on July 13, 2020, which is the next business day after 20 calendar
days from the signature date of this notice.\10\ Any rebuttal comments,
which may include factual information, must be filed by 5:00 p.m. ET on
July 23, 2020, which is ten calendar days from the initial comment
deadline.\11\
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\8\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997) (Preamble).
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\10\ In this case, 20 days after initiation falls on July 12,
2020, a Sunday. Where a deadline falls on a weekend or a federal
holiday, the appropriate deadline is the next business day. See
Notice of Clarification: Application of ``Next Business Day'' Rule
for Administrative Determination Deadlines Pursuant to the Tariff
Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
\11\ See 19 CFR 351.303(b).
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Commerce requests that any factual information parties consider
relevant to the scope of the investigations be submitted during this
period. However, if a party subsequently finds that additional factual
information pertaining to the scope of the investigations may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such submissions must be filed
on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\12\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\12\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of passenger tires to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant costs of production
accurately, as well as to develop appropriate product-comparison
criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics, and (2) product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe passenger tires, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, Commerce attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on July 13,
2020, which is the next business day after 20 calendar days from the
signature date of this notice.\13\ Any rebuttal comments must be filed
by 5:00 p.m. ET on July 23, 2020, which is ten calendar days from the
initial comment deadline. All comments and submissions to Commerce must
be filed electronically using ACCESS, as explained above, on the record
of each of the AD investigations.
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\13\ See Next Business Day Rule, 70 FR at 24533.
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Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the
[[Page 38856]]
domestic industry. Section 732(c)(4)(A) of the Act provides that a
petition meets this requirement if the domestic producers or workers
who support the petition account for: (i) At least 25 percent of the
total production of the domestic like product; and (ii) more than 50
percent of the production of the domestic like product produced by that
portion of the industry expressing support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D) of the Act provides that, if
the petition does not establish support of domestic producers or
workers accounting for more than 50 percent of the total production of
the domestic like product, Commerce shall: (i) Poll the industry or
rely on other information in order to determine if there is support for
the petition, as required by subparagraph (A); or (ii) determine
industry support using a statistically valid sampling method to poll
the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\14\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\15\
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\14\ See section 771(10) of the Act.
\15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigations.\16\ Based on our analysis of the information
submitted on the record, we have determined that passenger tires, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\17\
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\16\ See Volume I of the Petitions at 3-5 and Exhibits I-1 and
I-3.
\17\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see country-specific AD Initiation Checklists at Attachment II,
Analysis of Industry Support for the Antidumping and Countervailing
Duty Petitions Covering Passenger Vehicle and Light Truck Tires from
Korea, Taiwan, Thailand, and Vietnam. These checklists are dated
concurrently with this notice and on file electronically via ACCESS.
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On May 21, 2020, Commerce extended the initiation deadline by 20
days to poll the domestic industry in accordance with section
732(c)(4)(D) of the Act, because it was not ``clear from the Petitions
whether the industry support criteria have been met . . . . '' \18\
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\18\ See Initiation Extension Notice; see also Attachment II of
the country-specific AD Initiation Checklists.
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On May 22, 2020, we issued polling questionnaires to all known
producers identified in the Petitions, as well as the USW.\19\ We
requested that the companies/workers complete the polling questionnaire
and certify their responses by the due date specified in the cover
letter to the questionnaire.\20\ The petitioner and Sumitomo \21\
provided comments on the polling questionnaire responses on June 9,
2020.\22\ The petitioner and Hankook \23\ provided rebuttal comments on
June 11, 2020.\24\
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\19\ See Memorandum, ``Passenger Vehicle and Light Truck Tires
from Korea, Taiwan, Thailand, and Vietnam: Polling Questionnaire,''
dated May 22, 2020; see also Volume I of the Petitions at 5-6 and
Exhibit I-2; and General Issues Supplement at 3 and Exhibit 1.
\20\ For a detailed discussion of the responses received, see
Attachment II of the country-specific AD Initiation Checklists. The
polling questionnaire and questionnaire responses are on file
electronically via ACCESS.
\21\ Sumitomo Rubber (Thailand), Ltd., Sumitomo Rubber North
America, Inc., and Sumitomo Rubber USA, LLC (collectively,
Sumitomo). Sumitomo is a foreign producer/exporter in Thailand, a
U.S. importer of passenger tires from Thailand, and a U.S. producer
of passenger tires. See Sumitomo's Letter, ``Entry of Appearance,''
dated May 28, 2020.
\22\ See Petitioner's Letter, ``Passenger Vehicle and Light
Truck Tires from Korea, Taiwan, Thailand, and Vietnam: Industry
Support Comments,'' dated June 9, 2020; see also Sumitomo's Letter,
``Light Truck Tires from Thailand: Comments Regarding Responses to
Polling Questionnaire and Industry Support for Petition,'' dated
June 9, 2020.
\23\ Hankook Tire & Technology Co., Ltd., Hankook Tire America
Corp., and Hankook Tire Manufacturing Tennessee, LP (collectively,
Hankook). Hankook is a Korean producer/exporter of passenger tires,
a U.S. importer of passenger tires from Korea, and a U.S. producer/
exporter of passenger tires. See Hankook's Letter, ``Entry of
Appearance,'' dated June 1, 2020.
\24\ See Petitioner's Letter, ``Passenger Vehicle and Light
Truck Tires from Korea, Taiwan, Thailand, and Vietnam: Industry
Support Rebuttal Comments,'' dated June 11, 2020; see also Hankook's
Letter, ``Antidumping Duty Petition on Passenger Vehicle and Light
Truck Tires from Korea (A-580-908): Rebuttal Industry Support
Comments,'' dated June 11, 2020.
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Our analysis of the data we received in the polling questionnaire
responses indicates that the domestic producers and workers who support
the Petitions account for at least 25 percent of the total production
of the domestic like product and more than 50 percent of the production
of the domestic like product produced by that portion of the industry
expressing support for, or opposition to, the Petitions.\25\
Accordingly, Commerce determines that the industry support requirements
of section 732(c)(4)(A) of the Act have been met and that the Petitions
were filed on behalf of the domestic industry within the meaning of
section 732(b)(1) of the Act.\26\
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\25\ See Attachment II of the country-specific AD Initiation
Checklists.
\26\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\27\
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\27\ See Volume I of the Petitions at 19-20 and Exhibit I-9.
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression or suppression;
production and shipments lagging behind demand; declines in capacity
utilization and employment; and declining financial performance.\28\ We
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, as well as negligibility,
and we have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\29\
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\28\ See Volume I of the Petitions at 23-37 and Exhibits I-3, I-
9, and I-11 through I-15.
\29\ See country-specific AD Initiation Checklists at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Passenger Vehicle and Light Truck Tires from Korea, Taiwan,
Thailand, and Vietnam.
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[[Page 38857]]
Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate AD investigations of
imports of passenger tires from Korea, Taiwan, Thailand, and Vietnam.
The sources of data for the deductions and adjustments relating to U.S.
price and normal value (NV) are discussed in greater detail in the
country-specific AD Initiation Checklists.
U.S. Price
For Korea, Taiwan, Thailand, and Vietnam, the Petitions base export
price (EP) on the average unit value of publicly available import
data.\30\
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\30\ See country-specific AD Initiation Checklists.
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Normal Value \31\
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\31\ In accordance with section 505(a) of the Trade Preferences
Extension Act of 2015 (TPEA), amending section 773(b)(2) of the Act,
for these investigations, Commerce will request information
necessary to calculate the constructed value and cost of production
(COP) to determine whether there are reasonable grounds to believe
or suspect that sales of the foreign like product have been made at
prices that represent less than the COP of the product. Commerce no
longer requires a COP allegation to conduct this analysis.
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For Korea, Taiwan, and Thailand, the petitioner based NV on home
market price quotes obtained through market research for passenger
tires produced in and sold, or offered for sale, in each country within
the applicable time period.\32\ For Taiwan, the petitioner provided
information indicating that the price quote was below the cost of
production (COP) and, therefore, the petitioner also calculated NV
based on constructed value (CV). For further discussion of CV, see the
section ``Normal Value Based on Constructed Value.''
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\32\ See country-specific AD Initiation Checklists.
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Commerce considers Vietnam to be a non-market economy (NME)
country.\33\ In accordance with section 771(18)(C)(i) of the Act, any
determination that a foreign country is an NME country shall remain in
effect until revoked by Commerce. Therefore, we continue to treat
Vietnam as a NME country for purposes of the initiation of this
investigation. Accordingly, NV in Vietnam is appropriately based on
factors of production (FOPs) valued in a surrogate market economy
country, in accordance with section 773(c) of the Act.\34\
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\33\ See Certain Frozen Fish Fillets from the Socialist Republic
of Vietnam: Final Results, and Final Results of No Shipments of the
Antidumping Duty Administrative Review; 2016-2017, 84 FR 18007
(April 29, 2019).
\34\ See Vietnam AD Checklist.
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The petitioner claims that India is an appropriate surrogate
country for Vietnam because India is a market economy country that is
at a level of economic development comparable to that of Vietnam and it
is a significant producer of comparable merchandise.\35\ The petitioner
provided publicly available information from India to value all FOPs.
Based on the information provided by the petitioner, we determine that
it is appropriate to use India as a surrogate country for initiation
purposes.
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\35\ See Volume V of the Petition at 3-5 and Exhibits V-1, V-2,
and V-3.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
Because the petitioner is not a domestic producer, but a union
representing workers in the domestic industry producing the like
product of passenger tires, information on the FOPs based on the
foreign producers' or domestic producers' own cost experience was not
reasonably available to the petitioner. Therefore, to estimate
Vietnamese manufacturers' FOPs the petitioner combined the information
in thirteen publicly available cost models to create direct materials
models that provide the average percentage of total tire weight
represented by the direct materials for passenger car tires and for
light truck tires.\36\ The petitioner valued the estimated FOPs using
surrogate values from India. The petitioner calculated factory
overhead, selling, general and administrative expenses, and profit
based on the experience of an Indian producer of passenger tires.\37\
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\36\ See Volume V of the Petition at 8-15 and Exhibit 22.
\37\ See Vietnam AD Checklist.
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Normal Value Based on Constructed Value
As noted above, the petitioner provided information indicating that
the price charged for passenger tires produced in and sold, or offered
for sale, in Taiwan was below the COP. Accordingly, the petitioner also
based NV on CV.\38\ Pursuant to section 773(e) of the Act, the
petitioner calculated CV as the sum of the cost of manufacturing,
selling, general, and administrative expenses, financial expenses, and
profit.\39\
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\38\ See Taiwan AD Checklist.
\39\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of passenger tires from Korea, Taiwan, Thailand,
and Vietnam are being, or are likely to be, sold in the United States
at LTFV. Based on comparisons of EP to NV in accordance with sections
772 and 773 of the Act, the estimated dumping margins for passenger
tires for each of the countries covered by this initiation are as
follows: (1) Korea: 42.95 through 195.20 percent; (2) Taiwan: 20.57
through 116.14 percent; (3) Thailand: 106.36 through 217.50 percent;
and (4) Vietnam: 5.48 through 22.30 percent.\40\
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\40\ See country-specific Initiation Checklists for details of
calculations.
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Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating AD investigations to determine
whether imports of passenger tires from Korea, Taiwan, Thailand, and
Vietnam are being, or are likely to be, sold in the United States at
LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 140 days after the date of this
initiation.
Respondent Selection
In the Petitions, the petitioner named nine companies in Korea, 13
companies in Taiwan, and 26 companies in Thailand \41\ as producers/
exporters of passenger tires.
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\41\ See Volume I of the Petition at 14 and Exhibit I-8.
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Following standard practice in AD investigations involving market
economy countries, in the event Commerce determines that the number of
exporters or producers in any individual case is large such that
Commerce cannot individually examine each company based upon its
resources, where appropriate, Commerce intends to select mandatory
respondents in that case based on U.S. Customs and Border Protection
(CBP) data for U.S. imports under the appropriate Harmonized Tariff
Schedule of the United States numbers listed in the ``Scope of the
Investigations,'' in the appendix.
On June 16, 2020, Commerce released CBP data on imports of
passenger tires from Korea, Taiwan, and Thailand under Administrative
Protective Order
[[Page 38858]]
(APO) to all parties with access to information protected by APO and
indicated that interested parties wishing to comment on the CBP data
must do so within three business days of the publication date of the
notice of initiation of these investigations.\42\ Comments must be
filed electronically using ACCESS. An electronically-filed document
must be received successfully in its entirety via ACCESS by 5:00 p.m.
ET on the specified deadline. Commerce will not accept rebuttal
comments regarding the CBP data or respondent selection.
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\42\ See Memorandum, ``Antidumping Duty Investigation of
Passenger Tires: Release of Customs Data from U.S. Customs and
Border Protection,'' dated June 16, 2020.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on Commerce's website at http://enforcement.trade.gov/apo.
With respect to Vietnam, the petitioner named 13 companies \43\ as
producers/exporters of passenger tires in the Petitions. In accordance
with our standard practice for respondent selection in AD
investigations involving NME countries, Commerce selects respondents
based on quantity and value (Q&V) questionnaires in cases where it has
determined that the number of companies is large and it cannot
individually examine each company based upon its resources. Therefore,
considering the number of Vietnamese producers and exporters identified
in the Petitions, Commerce will solicit Q&V information that can serve
as a basis for selecting exporters for individual examination in the
event that Commerce decides to limit the number of respondents
individually examined pursuant to section 777A(c)(2) of the Act. Given
that there are 13 producers and exporters identified in the Petitions,
Commerce has determined that it will issue Q&V questionnaires to each
potential respondent for which the petitioner has provided a complete
address.
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\43\ See Volume I of the Petition at 14 and Exhibit I-8.
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In addition, Commerce will post the Q&V questionnaire along with
filing instructions on Enforcement and Compliance's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of
passenger tires from Vietnam that do not receive Q&V questionnaires may
still submit a response to the Q&V questionnaire and can obtain a copy
of the Q&V questionnaire from Enforcement and Compliance's website. In
accordance with the standard practice for respondent selection in AD
cases involving NME countries, in the event Commerce decides to limit
the number of respondents individually investigated, Commerce intends
to base respondent selection on the responses to the Q&V questionnaire
that it receives.
Responses to the Q&V questionnaire must be submitted by the
relevant Vietnamese producers/exporters no later than 5:00 p.m. ET on
July 8, 2020. All Q&V questionnaire responses must be filed
electronically via ACCESS. An electronically filed document must be
received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above. Commerce intends to finalize its
decisions regarding respondent selection within 20 days of publication
of this notice.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\44\
The specific requirements for submitting a separate- rate application
in a Vietnam investigation are outlined in detail in the application
itself, which is available on Commerce's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate
application will be due 30 days after publication of this initiation
notice.\45\ Exporters and producers who submit a separate-rate
application and have been selected as mandatory respondents will be
eligible for consideration for separate-rate status only if they
respond to all parts of Commerce's AD questionnaire as mandatory
respondents. Commerce requires that companies from Vietnam submit a
response to both the Q&V questionnaire and the separate-rate
application by the respective deadlines in order to receive
consideration for separate-rate status. Companies not filing a timely
Q&V questionnaire response will not receive separate rate
consideration.
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\44\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving NME Countries (April 5, 2005), available at http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
\45\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME Investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is
referred to as the application of ``combination rates'' because such
rates apply to specific combinations of exporters and one or more
producers. The cash-deposit rate assigned to an exporter will apply
only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\46\
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\46\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the AD Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the AD Petitions have been
provided to the governments of Korea, Taiwan, Thailand, and Vietnam via
ACCESS. To the extent practicable, we will attempt to provide a copy of
the public version of the AD Petitions to each exporter named in the AD
Petitions, as provided under 19 CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 25 days after the date
on which the ITC receives notice from Commerce of initiation of the
investigations, whether there is a reasonable indication that imports
of passenger tires from Korea, Taiwan, Thailand, and Vietnam are
materially injuring, or threatening material injury to, a U.S.
industry.\47\ A negative ITC determination for any country will result
in the investigation being terminated with respect to that country.\48\
Otherwise, these AD investigations will proceed according to statutory
and regulatory time limits.
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\47\ See section 733(a) of the Act.
\48\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
[[Page 38859]]
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \49\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\50\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in these investigations.
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\49\ See 19 CFR 351.301(b).
\50\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 504 of the TPEA amended the Act by adding the concept of
particular market situation (PMS) for purposes of CV under section
773(e) of the Act.\51\ Section 773(e) of the Act states that ``if a
particular market situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately reflect
the cost of production in the ordinary course of trade, the
administering authority may use another calculation methodology under
this subtitle or any other calculation methodology.'' When an
interested party submits a PMS allegation pursuant to section 773(e) of
the Act, Commerce will respond to such a submission consistent with 19
CFR 351.301(c)(2)(v). If Commerce finds that a PMS exists under section
773(e) of the Act, then it will modify its dumping calculations
appropriately.
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\51\ See TPEA, Pub. L. 114-27, 129 Stat. 362 (2015).
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Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set
a deadline for the submission of PMS allegations and supporting factual
information. However, in order to administer section 773(e) of the Act,
Commerce must receive PMS allegations and supporting factual
information with enough time to consider the submission. Thus, should
an interested party wish to submit a PMS allegation and supporting new
factual information pursuant to section 773(e) of the Act, it must do
so no later than 20 days after submission of a respondent's initial
section D questionnaire response.
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; under limited circumstances we will
grant untimely-filed requests for the extension of time limits. Parties
should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information
in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\52\
Parties must use the certification formats provided in 19 CFR
351.303(g).\53\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\52\ See section 782(b) of the Act.
\53\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Commerce website at http://enforcement.trade.gov/apo. Parties wishing to participate in these
investigations should ensure that they meet the requirements of these
procedures (e.g., the filing of letters of appearance as discussed at
19 CFR 351.103(d)). Note that Commerce has temporarily modified certain
portions of its requirements for serving documents containing business
proprietary information, until July 17, 2020, unless extended.\54\
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\54\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May18,
2020).
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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: June 22, 2020.
Joseph A. Laroski Jr.,
Deputy Assistant Secretary for Policy and Negotiations.
Appendix--Scope of the Investigations
The scope of these investigations 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. Tires covered by these investigations may be tube-
type, tubeless, radial, or non-radial, and they may be intended for
sale to original equipment manufacturers or the replacement market.
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 the following prefixes or suffix in their tire size
designation, which also appears on the sidewall of the tire:
Prefix designations:
P--Identifies a tire intended primarily for service on passenger
cars.
LT--Identifies a tire intended primarily for service on light
trucks.
Suffix letter designations:
LT--Identifies light truck tires for service on trucks, buses,
trailers, and multipurpose passenger vehicles used in nominal
highway service.
All tires with a ``P'' or ``LT'' prefix, and all tires with an
``LT'' suffix in their sidewall markings are covered by these
investigations regardless of their intended use.
In addition, all tires that lack a ``P'' or ``LT'' prefix or
suffix in their sidewall markings, as well as all tires that include
any other prefix or suffix in their sidewall markings, are included
in the scope, regardless of their intended use, as long as the tire
is of a size that fits passenger cars or light trucks. Sizes that
fit passenger cars and light trucks include, but are not limited to,
the numerical size designations listed in the passenger car section
or light truck section of the Tire and Rim Association Year Book, as
updated annually. The scope includes all tires that are of a size
that fits passenger cars or light trucks, unless the tire falls
within one of the specific exclusions set out below.
Passenger vehicle and light truck tires, whether or not attached
to wheels or rims, are included in the scope. However, if a subject
tire is imported attached to a wheel or rim, only the tire is
covered by the scope.
Specifically excluded from the scope are the following types of
tires:
[[Page 38860]]
(1) Racing car tires; such tires do not bear the symbol ``DOT''
on the sidewall and may be marked with ``ZR'' in size designation;
(2) pneumatic tires, of rubber, that are not new, including
recycled and retreaded tires;
(3) non-pneumatic tires, such as solid rubber tires;
(4) tires designed and marketed exclusively as temporary use
spare tires for passenger vehicles which, in addition, exhibit each
of the following physical characteristics:
(a) The size designation and load index combination molded on
the tire's sidewall are listed in Table PCT-1B (``T'' Type Spare
Tires for Temporary Use on Passenger Vehicles) or PCT-1B (``T'' Type
Diagonal (Bias) Spare Tires for Temporary Use on Passenger Vehicles)
of the Tire and Rim Association Year Book,
(b) the designation ``T'' is molded into the tire's sidewall as
part of the size designation, and,
(c) the tire's speed rating is molded on the sidewall,
indicating the rated speed in MPH or a letter rating as listed by
Tire and Rim Association Year Book, and the rated speed is 81 MPH or
a ``M'' rating;
(5) tires designed and marketed exclusively for specialty tire
(ST) use which, in addition, exhibit each of the following
conditions:
(a) The size designation molded on the tire's sidewall is listed
in the ST sections of the Tire and Rim Association Year Book,
(b) the designation ``ST'' is molded into the tire's sidewall as
part of the size designation,
(c) the tire incorporates a warning, prominently molded on the
sidewall, that the tire is ``For Trailer Service Only'' or ``For
Trailer Use Only'',
(d) the load index molded on the tire's sidewall meets or
exceeds those load indexes listed in the Tire and Rim Association
Year Book for the relevant ST tire size, and
(e) either
(i) the tire's speed rating is molded on the sidewall,
indicating the rated speed in MPH or a letter rating as listed by
Tire and Rim Association Year Book, and the rated speed does not
exceed 81 MPH or an ``M'' rating; or
(ii) the tire's speed rating molded on the sidewall is 87 MPH or
an ``N'' rating, and in either case the tire's maximum pressure and
maximum load limit are molded on the sidewall and either
(1) both exceed the maximum pressure and maximum load limit for
any tire of the same size designation in either the passenger car or
light truck section of the Tire and Rim Association Year Book; or
(2) if the maximum cold inflation pressure molded on the tire is
less than any cold inflation pressure listed for that size
designation in either the passenger car or light truck section of
the Tire and Rim Association Year Book, the maximum load limit
molded on the tire is higher than the maximum load limit listed at
that cold inflation pressure for that size designation in either the
passenger car or light truck section of the Tire and Rim Association
Year Book;
(6) tires designed and marketed exclusively for off-road use and
which, in addition, exhibit each of the following physical
characteristics:
(a) The size designation and load index combination molded on
the tire's sidewall are listed in the off-the-road, agricultural,
industrial or ATV section of the Tire and Rim Association Year Book,
(b) in addition to any size designation markings, the tire
incorporates a warning, prominently molded on the sidewall, that the
tire is ``Not For Highway Service'' or ``Not for Highway Use'',
(c) the tire's speed rating is molded on the sidewall,
indicating the rated speed in MPH or a letter rating as listed by
the Tire and Rim Association Year Book, and the rated speed does not
exceed 55 MPH or a ``G'' rating, and
(d) the tire features a recognizable off-road tread design.
The products covered by these investigations are currently
classified under the following Harmonized Tariff Schedule of the
United States (HTSUS) 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, and 4011.20.50.10.
Tires meeting the scope description may also enter under the
following HTSUS subheadings: 4011.90.10.10, 4011.90.10.50,
4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50,
8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.60,
8708.70.60.30, 8708.70.60.45, and 8708.70.60.60. While HTSUS
subheadings are provided for convenience and for customs purposes,
the written description of the subject merchandise is dispositive.
[FR Doc. 2020-13958 Filed 6-26-20; 8:45 am]
BILLING CODE 3510-DS-P