Passenger Vehicle and Light Truck Tires From the Socialist Republic of Vietnam: Final Determination of Sales at Less Than Fair Value |
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Christian Marsh
Department of Commerce
27 May 2021
[Federal Register Volume 86, Number 101 (Thursday, May 27, 2021)]
[Notices]
[Pages 28559-28563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11266]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-828]
Passenger Vehicle and Light Truck Tires From the Socialist
Republic of Vietnam: Final Determination of Sales at Less Than Fair
Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of passenger vehicle and light truck tires (passenger tires) from the
Socialist Republic of Vietnam (Vietnam) are being, or are likely to be,
sold in the United States at less than fair value (LTFV). The period of
investigation is
[[Page 28560]]
October 1, 2019, through March 31, 2020.
DATES: Applicable May 27, 2021.
FOR FURTHER INFORMATION CONTACT: Jasun Moy or Robert Scully, AD/CVD
Operations, Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-8194 or (202) 482-0572,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On January 6, 2021, Commerce published in the Federal Register the
preliminary affirmative determination in the LTFV investigation of
passenger tires from Vietnam, in which we also postponed the final
determination until May 21, 2021.\1\ We invited interested parties to
comment on the Preliminary Determination. A summary of the events that
occurred since Commerce published the Preliminary Determination may be
found in the Issues and Decision Memorandum.\2\
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\1\ See Passenger Vehicle and Light Truck Tires from the
Socialist Republic of Vietnam: Preliminary Affirmative Determination
of Sales at Less Than Fair Value, Postponement of Final
Determination, and Extension of Provisional Measures, 86 FR 504
(January 6, 2021) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Passenger Vehicle and Light Truck Tires from the
Socialist Republic of Vietnam,'' dated concurrently with, and hereby
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are passenger tires from
Vietnam. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties. Commerce issued a Preliminary Scope
Decision Memorandum to address these comments.\3\ We received comments
from interested parties on the Preliminary Scope Decision Memorandum,
which we addressed in the Final Scope Decision Memorandum.\4\ With the
exception of one revision to correct a typographical error, Commerce is
not modifying the scope language as it appeared in the correction to
the Preliminary Determination.\5\ See Appendix I for the final scope of
the investigation.
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\3\ 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 December 29, 2020 (Preliminary Scope Decision
Memorandum).
\4\ See Memorandum, ``Passenger Vehicle and Light Truck Tires
from the Republic of Korea, Taiwan, Thailand, and the Socialist
Republic of Vietnam: Scope Comments Final Decision Memorandum.''
dated concurrently with this notice (Final Scope Decision
Memorandum).
\5\ See Passenger Vehicle and Light Truck Tires from the
Republic of Korea, Taiwan, Thailand, and the Socialist Republic of
Vietnam: Notice of Correction to Preliminary Determinations in Less-
Than-Fair-Value Investigations, 86 FR 7252 (January 27, 2021).
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Analysis of Comments Received
All the issues raised in the case and rebuttal briefs that were
submitted by parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues addressed in the Issues
and Decision Memorandum is attached to this notice as Appendix II. The
Issues and Decision Memorandum is a public document and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at https://access.trade.gov. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/index.html.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Tariff Act of
1930, as amended (the Act).\6\
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\6\ See Commerce's Letter, ``Request for Documentation,'' dated
January 26, 2021; Commerce's Letter, ``Request for Documentation,''
dated January 28, 2021; Sailun's Letter, ``Sailun Response to
Commerce Verification Document Request,'' dated February 2, 2021;
and Kenda's Letter, ``Response to the Department's Request for
Documentation in Lieu of On-Site Verification,'' dated February 4,
2021.
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Methodology
Commerce conducted this investigation in accordance with section
731 of the Act. Export price was calculated in accordance with section
772(a) of the Act. Constructed export price was calculated in
accordance with section 772(b) of the Act. Because Vietnam is a non-
market economy within the meaning of section 771(18) of the Act, normal
value was calculated in accordance with section 773(c) of the Act. For
a full description of the methodology underlying Commerce's
determination, see the Preliminary Determination PDM and the Issues and
Decision Memorandum.
Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings
related to our request for information in lieu of on-site verification,
we have made certain changes to the margin calculations. For a
discussion of these changes, see the Issues and Decision Memorandum.
Vietnam-Wide Entity
For the final determination, we continue to find that the use of
adverse facts available (AFA), pursuant to sections 776(a) and (b) of
the Act, is warranted in determining the rate for the Vietnam-wide
entity. In the Preliminary Determination, Commerce based the AFA rate
for the Vietnam-wide entity on the petition margin of 22.30 percent.\7\
For this final determination, we continue to rely on AFA in determining
the rate for the Vietnam-wide entity and, as AFA, we continue to select
the highest petition margin of 22.30 percent as the estimated weighted-
average dumping margin for the Vietnam-wide entity.\8\
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\7\ See Preliminary Determination PDM at 18.
\8\ For the corroboration of this margin, see Issues and
Decision Memorandum at Comment 1.
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Combination Rates
In the Initiation Notice,\9\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\10\ In this investigation, we assigned
producer/exporter combination rates for respondents eligible for
separate rates and these combination rates are listed in the table in
the ``Final Determination'' section of this notice.
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\9\ See Initiation Notice, 85 FR at 38858.
\10\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' April 5, 2005 (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
[[Page 28561]]
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Cash deposit
Estimated rate (adjusted
Exporter Producer weighted-average for subsidy
dumping margin offset)
(percent) (percent)
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Kenda Rubber (Vietnam) Co. Ltd............. Kenda Rubber (Vietnam) Co. Ltd 0.00 0.00
Sailun Group (HongKong) Co., Limited/Sailun Sailun (Vietnam) Co., Ltd..... 0.00 0.00
Tire Americas Inc.
Bridgestone Corporation.................... Bridgestone Tire Manufacturing 0.00 0.00
Vietnam LLC.
Bridgestone Tire Manufacturing Vietnam LLC. Bridgestone Tire Manufacturing 0.00 0.00
Vietnam LLC.
Kumho Tire (Vietnam) Co., Ltd.............. Kumho Tire (Vietnam) Co., Ltd. 0.00 0.00
The Yokohama Rubber Co., Ltd............... Yokohama Tyre Vietnam Co...... 0.00 0.00
Vietnam-Wide Entity........................ .............................. 22.30 22.27
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Disclosure
We intend to disclose the calculations performed in this final
determination within five days of its public announcement or, if there
is no public announcement, within five days of the date of publication
of this notice to parties in this proceeding in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend the liquidation of all appropriate entries of subject
merchandise, as described in Appendix I of this notice, entered, or
withdrawn from warehouse, for consumption on or after January 6, 2021,
the date of publication in the Federal Register of the affirmative
Preliminary Determination, except for those entries of subject
merchandise produced and exported by Kenda and entries of subject
merchandise produced by Sailun Vietnam and exported by Sailun Group
(HongKong) Co., Limited or Sailun Tire Americas Inc. (collectively,
Sailun).
Because the estimated weighted-average dumping margins for Kenda
and Sailun in the above-specified producer/exporter combinations are
zero, entries of shipments of subject merchandise from these producer/
exporter combinations will not be subject to suspension of liquidation
or cash deposit requirements. Accordingly, Commerce will direct CBP not
to suspend liquidation of entries of subject merchandise produced and
exported by Kenda, and produced by Sailun Vietnam and exported by
Sailun Group (HongKong) Co., Limited or Sailun Tire Americas Inc. In
accordance with section 735(a)(4) of the Act and 19 CFR 351.204(e)(1),
should the investigation result in an antidumping duty (AD) order
pursuant to section 736 of the Act, entries of shipments of subject
merchandise from these producer/exporter combinations will be excluded
from the order. However, entries of shipments of subject merchandise
from these companies in any other producer/exporter combinations, or by
third parties that sourced subject merchandise from the excluded
producer/exporter combinations, will be subject to suspension of
liquidation at the Vietnam-wide entity rate. Additionally, any
exclusion will not apply to entries of shipments of subject merchandise
from the other producer/exporter combinations listed in the table above
that were assigned a weighted-average dumping margin of zero.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), where appropriate, we will instruct CBP to require a cash
deposit for entries of subject merchandise equal to the estimated
weighted-average dumping margin as follows: (1) For the exporter/
producer combinations listed in the table above, except those specified
for Kenda and Sailun Vietnam/Sailun Group (HongKong) Co., Limited/
Sailun Tire Americas Inc., the cash deposit rate is equal to the
estimated weighted-average dumping margin listed for that combination
in the table; (2) for all combinations of Vietnamese exporters/
producers not listed in the above table, the cash deposit rate is equal
to the estimated weighted-average dumping margin listed in the table
for the Vietnam-wide entity; and (3) for all non-Vietnamese exporters
not listed in the table above, the cash deposit rate applicable to the
Vietnamese exporter/producer combination (or the Vietnam-wide entity)
that supplied that non-Vietnamese exporter.
Commerce normally adjusts cash deposits for estimated antidumping
duties by the amount of domestic subsidy pass-through and export
subsidies countervailed in a companion countervailing duty (CVD)
proceeding when CVD provisional measures are in effect. Accordingly,
where Commerce made an affirmative determination for domestic subsidy
pass-through or export subsidies, Commerce has offset the estimated
weighted-average dumping margins by the appropriate rates.\11\ However,
provisional measures are no longer in effect in the companion CVD case.
Therefore, we are not instructing CBP to collect cash deposits based
upon the estimated the estimated weighted-average dumping margins
adjusted for domestic subsidy pass-through or export subsidies at this
time.
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\11\ See Issues and Decision Memorandum; see also Memorandum,
``Calculation of Double Remedies and Export Subsidy Offset,'' dated
December 29, 2020.
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
is affirmative, in accordance with section 735(b)(2) of the Act, the
ITC will make its final determination as to whether the domestic
industry in the United States is materially injured, or threatened with
material injury, by reason of imports or sales (or the likelihood of
sales) for importation of passenger tires no later than 45 days after
this final determination. If the ITC determines that such injury does
not exist, this proceeding will be terminated, and all cash deposits
posted will be refunded and suspension of liquidation will be lifted.
If the ITC determines that such injury does exist, Commerce will issue
an AD order directing CBP to assess, upon further instruction by
Commerce, antidumping duties on all imports of the subject merchandise
entered, or withdrawn from warehouse, for consumption on or after the
effective date of the suspension of liquidation, as discussed above in
the ``Continuation of Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
This notice will serve as a final reminder to the parties subject
to administrative protective order (APO) of their responsibility
concerning the
[[Page 28562]]
disposition of proprietary information disclosed under APO in
accordance with 19 CFR 351.305(a)(3). Timely written notification of
return or destruction of APO materials or conversion to judicial
protective order is hereby requested. Failure to comply with the
regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
This determination and this notice are issued and published in
accordance with sections 735(d) and 777(i)(1) of the Act, and 19 CFR
351.210(c).
Dated: May 21, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
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 this
investigation 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, 245/70R18, 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 UTQG 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
(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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American standard size Metric size Load 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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[[Page 28563]]
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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary Determination
V. Adjustment under Section 777A(f) of the Act
VI. Adjustments to Cash Deposit Rates for Export Subsidies
VII. Discussion of the Issues
Comment 1: Appropriate Adverse Facts Available (AFA) Rate for
the Vietnam-Wide Entity
Comment 2: Selecting Kumho Tire (Vietnam) Co., Ltd. (KTV) as a
Voluntary Respondent
Comment 3: KTV's Request to Be Excluded from the Order
Comment 4: Whether Kenda's Rate Should Be Based on AFA
Comment 5: Whether Sailun's Rate Should Be Based on AFA
Comment 6: Classification of U.S. Sales as Export Price (EP) or
Constructed Export Price (CEP)
Comment 7: Surrogate Value (SV) for Ocean Freight for Sailun's
Sales
Comment 8: SV of Bead Wire
Comment 9: Other Issues Raised by Sailun
VIII. Recommendation
[FR Doc. 2021-11266 Filed 5-26-21; 8:45 am]
BILLING CODE 3510-DS-P