Truck and Bus Tires From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, and Rescission of Review, in Part; 2019

James Maeder
Department of Commerce
25 June 2021

[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33644-33646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13586]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-041]


Truck and Bus Tires From the People's Republic of China: 
Preliminary Results of Countervailing Duty Administrative Review, and 
Rescission of Review, in Part; 2019

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of truck and bus tires from the People's Republic of China 
(China). The period of review (POR) is February 15, 2019, through 
December 31, 2019. In addition, we are rescinding the review with 
respect to several companies. Interested parties are invited to comment 
on these preliminary results of review.

DATES: Applicable June 25, 2021.

FOR FURTHER INFORMATION CONTACT: Dusten Hom or Theodore Pearson, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: 202-482-5075 or 202-482-2631, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 15, 2019, Commerce published in the Federal Register 
the countervailing duty (CVD) order on truck and bus tires from the 
China.\1\ On April 8, 2020, Commerce published in the Federal Register 
an initiation notice for an administrative review of the Order on 46 
producers/exporters for the POR.\2\ For events that occurred since the 
Initiation Notice, see the Preliminary Decision Memorandum.\3\ On June 
17, 2021, the President signed into law the Juneteenth National 
Independence Day Act, making June 19 a Federal holiday.\4\ Because the 
Federal holiday fell on a Saturday, it was observed on Friday, June 18, 
2021. Where a deadline falls on a weekend or Federal holiday, the 
appropriate deadline is the next business day.\5\ Accordingly, the 
deadline for these preliminary results is on June 21, 2021.
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    \1\ See Truck and Bus Tires from the People's Republic of China: 
Amended Final Determination and Countervailing Duty Order, 84 FR 
4434 (February 15, 2019) (the Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 19730 (April 8, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of 2019 Countervailing Duty Administrative Review: Truck and 
Bus Tires from the People's Republic of China and Rescission of 
Administrative Review, in Part,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
    \4\ See Juneteenth National Independence Day Act, S. 475, Public 
Law 117-17 (2021).
    \5\ 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).
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Scope of the Order

    The products covered by the Order are truck and bus tires from 
China. For a complete description of the scope of the Order, see the 
Preliminary Decision Memorandum.

Rescission of Administrative Review, in Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the parties that 
requested a review withdraw the request within 90 days of the date of 
publication of the notice of initiation. On April 14, 2020, Sailun \6\ 
withdrew its request for review of Sailun Group Co., Ltd.; Sailun 
(Shenyang) Tire Co., Ltd.; Sailun Group (Hong Kong) Co., Limited 
(previously known as Sailun Jinyu Group (Hong Kong) Co., Limited) and 
requested Commerce rescind the administrative review with respect to 
these companies. In the Respondent Selection Memorandum,\7\ we stated 
our intent to rescind the review of these Sailun companies because the 
withdrawal of review was timely filed and no other party requested a 
review of these companies. Therefore, in accordance with 19 CFR 
351.213(d)(1), Commerce is rescinding this review of the Order with 
respect to Sailun companies noted above.
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    \6\ Sailun Group Co., Ltd.; Sailun (Shenyang) Tire Co., Ltd.; 
Sailun Group (Hong Kong) Co., Limited (previously known as Sailun 
Jinyu Group (Hong Kong) Co., Limited) (collectively, Sailun).
    \7\ See Memorandum, ``Countervailing Duty Administrative Review 
of Truck and Bus Tires from the People's Republic of China: 
Respondent Selection,'' dated June 30, 2020 (Respondent Selection 
Memorandum).
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found countervailable, we preliminarily 
determine that there is a subsidy, i.e., a financial contribution by an 
``authority'' that confers a benefit to the recipient, and that the 
subsidy is specific.\8\ For a full description of the methodology 
underlying our preliminary conclusions, including our reliance, in 
part, on adverse facts available pursuant to sections 776(a) and (b) of 
the Act, see the Preliminary Decision Memorandum.
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    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    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/index.html. A 
list of topics discussed in the Preliminary Decision Memorandum is 
included as Appendix I to this notice.

[[Page 33645]]

Preliminary Rate for Non-Selected Companies Under Review

    There are 41 companies for which a review was requested and not 
rescinded, and which were not selected as mandatory respondents or 
found to be cross-owned with a mandatory respondent. For these 
companies, because the rates calculated for the mandatory respondents, 
Qingdao Ge Rui Da Rubber Co., Ltd. (GRT) and Prinx Chengshan (Shandong) 
Tire Co., Ltd. (PCT), were above de minimis and not based entirely on 
facts available, we are applying to the non-selected companies the 
average of the net subsidy rates calculated for GRT and PCT, which we 
calculated using the publicly ranged sales data submitted by GRT and 
PCT.\9\ This methodology to establish the all-others subsidy rate is 
consistent with our practice and section 705(c)(5)(A) of the Act. For 
further information on the calculation of the non-selected respondent 
rate, refer to the section in the Preliminary Decision Memorandum 
entitled ``Non-Selected Companies Under Review.'' For a list of non-
selected companies, see Appendix II.
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    \9\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates 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).
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Preliminary Results of the Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated a 
countervailable subsidy rate for each of the mandatory respondents, GRT 
and PCT, which includes their cross-owned affiliates, where applicable.
    We preliminarily find the countervailable subsidy rates for the 
mandatory and non-selected respondents under review to be as follows:
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    \10\ Cross-owned affiliates are Chengshan Group Co., Ltd., 
Shanghai Chengzhan Information and Technology Center, Prinx 
Chengshan (Qingdao) Industrial Research & Design Co., Ltd., and 
Shandong Prinx Chengshan Tire Technology Research Co., Ltd.
    \11\ Cross-owned affiliates are Cooper Tire (China) Investment 
Co. Ltd., Cooper (Kunshan) Tire Co., Ltd., and Qingdao Yiyuan 
Investment Co., Ltd.
    \12\ See Appendix II.

------------------------------------------------------------------------
                                                           Subsidy rate
                    Producer/exporter                        (percent)
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Prinx Chengshan (Shandong) Tire Co., Ltd.\10\...........           17.04
Qingdao Ge Rui Da Rubber Co., Ltd.\11\..................           16.62
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   Review-Specific Average Rate Applicable to the Following Companies
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Other Respondents \12\..................................           16.76
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Disclosure and Public Comment

    We intend to disclose to interested parties the calculations 
performed for these preliminary results within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of these preliminary results of review.\13\ 
Rebuttals to case briefs may be filed no later than seven days after 
the case briefs are filed, and all rebuttal comments must be limited to 
comments raised in the case briefs.\14\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information until further notice.\15\
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    \13\ See 19 CFR 351.309(c).
    \14\ See 19 CFR 351.309(d).
    \15\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
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 351.309(c)(2) and (d)(2), parties who submit 
case briefs or rebuttal briefs in this review 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.
    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, 
parties will be notified of the date and time for the hearing to be 
determined.
    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of the issues raised in the case briefs, within 120 days of publication 
of these preliminary results in the Federal Register, pursuant to 
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producer/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(2)(C) of the Act and 19 CFR 
351.212(b)(2), Commerce shall determine, and CBP shall assess, 
countervailing duties on all appropriate entries covered by this 
review. For the companies for which this review is rescinded, Commerce 
will instruct CBP to assess countervailing duties on all appropriate 
entries at a rate equal to the cash deposit of estimated countervailing 
duties required at the time of entry, or withdrawal from warehouse, for 
consumption, during the period February 15, 2019, through December 31, 
2019, in accordance with 19 CFR 351.212(c)(l)(i). For the companies 
remaining in the review, Commerce intends to issue assessment 
instructions to CBP no earlier than 35 days after the date of 
publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).

Cash Deposit Requirements

    In accordance with section 751(a)(2)(C) of the Act, Commerce 
intends, upon publication of the final results, to instruct CBP to 
collect cash deposits of estimated countervailing duties in the amounts 
shown for each of the respondents listed above on shipments of subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final results of this 
administrative review. For all non-reviewed firms, CBP will continue to 
collect cash deposits at the most recent company-specific or all-others 
rate applicable to the company, as appropriate. These cash deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Notification to Interested Parties

    These preliminary results are issued and published pursuant to 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).


[[Page 33646]]


    Dated: June 21, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Non-Selected Companies Under Review
V. Diversification of China's Economy
VI. Partial Rescission of the Administrative Review
VII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VIII. Subsidies Valuation
IX. Interest Rate Benchmarks, Discount Rates, Inputs, Electricity, 
and Land Benchmarks
X. Analysis of Programs
XI. Recommendation

Appendix II

List of Companies Not Individually Examined

1. Aeolus Tyre Co., Ltd.
2. Chaoyang Long March Tyre Co., Ltd.
3. Doublestar International Trading (Hongkong) Co., Limited
4. Giti Radial Tire (Anhui) Company
5. Giti Tire (Fujian) Company Ltd.
6. Giti Tire Global Trading Pte Ltd.
7. Guangrao Kaichi Trading Co., Ltd.
8. Guizhou Tyre Co., Ltd.
9. Guizhou Tyre Import and Export Co., Ltd.
10. Hefei Wanli Tire Co., Ltd.
11. Hongtyre Group Co.
12. Jiangsu General Science Technology Co., Ltd.
13. Koryo International Industrial Limited
14. Maxon Int'l Co., Limited
15. Megalith Industrial Group Co., Limited
16. Qingdao Awesome International Trade Co., Ltd
17. Qingdao Doublestar Overseas Trading Co., Ltd.
18. Qingdao Doublestar Tire Industrial Co., Ltd.
19. Qingdao Fullrun Tyre Corp. Ltd
20. Qingdao Jinhaoyang International Co., Ltd.
21. Qingdao Keter International Co., Limited
22. Qingdao Lakesea Tyre Co., Ltd
23. Qingdao Powerich Tyre Co., Ltd.
24. Qingdao Shinego Tire Tech Co., Limited (also known as Qingdao 
Shinego Tyre Tech Co., Ltd.)
25. Qingdao Sunfulcess Tyre Co., Ltd.
26. Shandong Habilead Rubber Co., Ltd.
27. Shandong Haohua Tire Co., Ltd.
28. Shandong Huasheng Rubber Co., Ltd
29. Shandong Hugerubber Co., Ltd.
30. Shandong Kaixuan Rubber Co., Ltd
31. Shandong Province Sanli Tire Manufactured Co., Ltd
32. Shandong Qilun Rubber Co., Ltd.
33. Shandong Transtone Tyre Co., Ltd
34. Shandong Wanda Boto Tyre Co., Ltd.
35. Shandong Yongsheng Rubber Group Co., Ltd.
36. Shanghai Huayi Group Corporation Limited
37. Shengtai Tyre Co., Ltd.
38. Sichuan Kalevei Technology Co., Ltd.
39. Tongli Tyre Co., Ltd.
40. Triangle Tyre Co., Ltd.
41. Weifang Shunfuchang Rubber and Plastic Products Co., Ltd.

[FR Doc. 2021-13586 Filed 6-24-21; 8:45 am]
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