Passenger Vehicle and Light Truck Tires From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures |
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James Maeder
Department of Commerce
6 January 2021
[Federal Register Volume 86, Number 3 (Wednesday, January 6, 2021)]
[Notices]
[Pages 501-504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29299]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-908]
Passenger Vehicle and Light Truck Tires From the Republic of
Korea: Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Postponement of Final Determination, and Extension of
Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that passenger vehicle and light truck tires (passenger tires) from the
Republic of Korea (Korea) are being, or are likely to be, sold in the
United States at less than fair value (LTFV). The period of
investigation is April 1, 2019, through March 31, 2020. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable January 6, 2021.
FOR FURTHER INFORMATION CONTACT: Elfi Blum or Jun Jack Zhao, 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) 482-0197 or (202) 482-1396,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on June 29,
2020.\1\ On October 16, 2020, Commerce postponed the preliminary
determination of this investigation by 50 days, to December 29, 2020,
pursuant to section 733(c)(1)(A) of the Act and 19 CFR 351.205(e).\2\
For a complete description of the events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\3\ A
list of topics included in the Preliminary Decision Memorandum is
included as Appendix II to this notice. The Preliminary 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 Preliminary Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/. The signed and the electronic
versions of the Preliminary Decision Memorandum are identical in
content.
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\1\ See 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, 85 FR
38854 (June 29, 2020) (Initiation Notice).
\2\ See Passenger Vehicle and Light Truck Tires From the
Republic of Korea, Taiwan, Thailand, and the Socialist Republic of
Vietnam: Postponement of Preliminary Determinations in the Less-
Than-Fair-Value Investigations, 85 FR 65791 (October 16, 2020); see
also Petitioners' Letter, ``Passenger Vehicle and Light Truck Tires
from the Republic of Korea, Taiwan, Thailand, and the Socialist
Republic of Vietnam: Petitioner's Request for Extension of
Preliminary Determination,'' dated October 1, 2020.
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Passenger Vehicle and Light Truck Tires from the Republic of
Korea,'' dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are passenger tires from
Korea. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
on the record of this investigation, and accompanying discussion and
analysis of all comments timely received, see the Preliminary Scope
Decision Memorandum.\6\ As discussed in the Preliminary Scope Decision
Memorandum, Commerce is preliminarily modifying the scope language as
it appeared in the Initiation Notice. See the revised scope in Appendix
I to this notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice, 85 FR at 38855.
\6\ See Memorandum, ``Passenger Vehicle and Light Truck Tires
from the Republic of Korea, Taiwan, Thailand, and the Socialist
Republic of Vietnam: Preliminary Scope Comments Decision
Memorandum,'' dated concurrently with this preliminary determination
(Preliminary Scope Decision Memorandum).
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The deadline to submit scope case briefs is established in the
Preliminary Scope Decision Memorandum. There will be no further
opportunity for comments on scope-related issues.\7\
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\7\ Case briefs and rebuttal briefs submitted in response to
this preliminary LTFV determination should not include scope-related
issues. See Preliminary Scope Decision Memorandum and the ``Public
Comment'' section of this notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export price and
constructed export price in accordance with section 772 of the Act.
Normal value (NV) is calculated in accordance with section 773 of the
Act. Furthermore, pursuant to sections 776(a) and (b) of the Act,
Commerce has preliminarily relied on partial facts otherwise available,
with adverse inferences, for Hankook Tire & Technology Co. Ltd
(Hankook).\8\ For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
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\8\ In its section A questionnaire response, Hankook stated that
in March 1999, the name Hankook Tire Mfg. Co., Ltd. was changed to
Hankook Tire Co., Ltd. In May 2019, the name of Hankook Tire Co.
Ltd. was changed to Hankook Tire & Technology Co. Ltd. Hankook Tire
America Corp. and Hankook Tire Manufacturing Tennessee, LP, are
directly and indirectly wholly-owned subsidiaries of Hankook Tire &
Technology Co. Ltd. See Hankook's Letter, ``Passenger Vehicle and
Light Truck Tires from the Republic of Korea (A-580-908): Initial
Section A Questionnaire Response,'' dated September 14, 2020.
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All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in
the preliminary determination Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act. In this investigation, Commerce calculated estimated weighted-
average dumping margins for Hankook and Nexen that are not zero, de
minimis, or based entirely on facts otherwise available. Commerce
calculated the all-others' rate using an average of the estimated
weighted-average dumping margins calculated for the examined
respondents weighted by each company's publicly-ranged total
[[Page 502]]
U.S. sale values for the merchandise under consideration.\9\
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\9\ With two respondents under examination, Commerce normally
calculates: (A) A weighted-average of the estimated weighted-average
dumping margins calculated for the examined respondents; (B) a
simple average of the estimated weighted-average dumping margins
calculated for the examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins calculated for the
examined respondents using each company's publicly-ranged U.S. sale
quantities for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010). As complete publicly ranged sales data was
available, Commerce based the all-others rate on the publicly ranged
sales data of the mandatory respondents. For a complete analysis of
the data, please see Commerce's Memorandum ``Preliminary
Determination of the Less-Than-Fair Value Investigation of Passenger
Vehicles and Light Truck Tires from Korea: Rate for Non-Examined
Companies,'' dated concurrently with this FR notice.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Hankook Tire & Technology Co. Ltd (Hankook)................. 38.07
Nexen Tire Corporation (Nexen).............................. 14.24
All Others.................................................. 27.81
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise, as described in Appendix I, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. Further, pursuant
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will
instruct CBP to require a cash deposit for estimated antidumping duties
equal to the estimated weighted-average dumping margin or the estimated
all-others rate, as follows: (1) The cash deposit rate for the
respondents listed above will be equal to the company-specific
estimated weighted-average dumping margins determined in this
preliminary determination; (2) if the exporter is not a respondent
identified above, but the producer is, then the cash deposit rate will
be equal to the company-specific estimated weighted-average dumping
margin established for that producer of the subject merchandise; and
(3) the cash deposit rate for all other producers and exporters will be
equal to the all-others estimated weighted-average dumping margin.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce is unable to conduct
on-site verification in this investigation. Accordingly, we intend to
verify the information relied upon in making the final determination
through alternative means in lieu of an on-site verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of such case briefs
and written comments at a later date. Rebuttal briefs, limited to
issues raised in case briefs, may be submitted no later than seven days
after the deadline date for case briefs.\10\ Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until further notice.\11\
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case
briefs or rebuttal briefs in this investigation are encouraged to
submit with each argument: (1) A statement of the issue; (2) a brief
summary of the argument; and (3) a table of authorities.
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\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\11\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of
Effective Period, 85 FR 41363 (July 10, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date and time of
the hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On December 2 and 9, 2020, Hankook and Nexen, respectively,
requested that, in the event of an affirmative preliminary
determination in this investigation, Commerce postpone its final
determination in accordance with section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii) and extend the application of the provisional
measures prescribed under section 733(d) of the Act and 19 CFR
351.210(e)(2) from a four-month to a six-month period.\12\ In
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because: (1) The preliminary
[[Page 503]]
determination is affirmative; (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of publication of this preliminary determination.
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\12\ See Hankook's Letter, ``Passenger Vehicle and Light Truck
Tires from the Republic of Korea (A-580-908): Request to Extend the
Final Determination and Provisional Measures,'' dated December 2,
2020; and Nexen's Letters, ``Passenger Vehicle and Light Truck Tires
From South Korea: Request for Postponement of the Final
Determination,'' dated December 9, 2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 after the final determination whether
these imports are materially injuring, or threaten material injury to,
the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: December 29, 2020.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
Appendix I
Scope of the Investigation
The scope of this investigation 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 this investigation 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:
(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-1R (``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 as temporary use
spare tires for light trucks which, in addition, exhibit each of the
following physical characteristics:
(a) The tires have a 265/70R17, 255/80R17, 265/70R16, 245/70R17,
245/75R17, 265/70R18, or 265/70R18 size designation;
(b) ``Temporary Use Only'' or ``Spare'' is molded into the
tire's sidewall;
(c) the tread depth of the tire is no greater than 6.2 mm; and
(d) Uniform Tire Quality Grade Standards (``UTQG'') ratings are
not molded into the tire's sidewall with the exception of 265/70R17
and 255/80R17 which may have UTGC molded on the tire sidewall;
(6) 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;
(7) 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;
(8) Tires designed and marketed for off-road use as all-terrain-
vehicle (ATV) tires or utility-terrain-vehicle (UTV) tires, and
which, in addition, exhibit each of the following characteristics:
(a) 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 87 MPH or an ``N'' rating, and
(b) both of the following physical characteristics are
satisfied:
(i) The size designation and load index combination molded on
the tire's sidewall does not match any of those listed in the
passenger car or light truck sections of the Tire and Rim
Association Year Book, and
[[Page 504]]
(ii) The size designation and load index combination molded on
the tire's sidewall matches any of the following size designation
(American standard or metric) and load index combinations:
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Load
American standard size Metric size index
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26x10R12............................. 254/70R/12.............. 72
27x10R14............................. 254/65R/14.............. 73
28x10R14............................. 254/70R/14.............. 75
28x10R14............................. 254/70R/14.............. 86
30X10R14............................. 254/80R/14.............. 79
30x10R15............................. 254/75R/15.............. 78
30x10R14............................. 254/80R/14.............. 90
31x10R14............................. 254/85R/14.............. 81
32x10R14............................. 254/90R/14.............. 95
32x10R15............................. 254/85R/15.............. 83
32x10R15............................. 254/85R/15.............. 94
33x10R15............................. 254/90R/15.............. 86
33x10R15............................. 254/90R/15.............. 95
35x9.50R15........................... 241/105R/15............. 82
35x10R15............................. 254/100R/15............. 97
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The products covered by this investigation 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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional
Measures
V. Scope of The Investigation
VI. Scope Comments
VII. Application of Facts Available and Use of Adverse Inference
VIII. Discussion of the Methodology
IX. Currency Conversion
X. Recommendation
[FR Doc. 2020-29299 Filed 1-5-21; 8:45 am]
BILLING CODE 3510-DS-P