Passenger Vehicle and Light Truck Tires From the Republic of Korea: Final Affirmative 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 28569-28571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11262]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-908]
Passenger Vehicle and Light Truck Tires From the Republic of
Korea: Final Affirmative 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
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) for the period of
investigation (POI) April 1, 2019, through March 31, 2020.
DATES: Applicable May 27, 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
On January 6, 2021, Commerce published in the Federal Register its
preliminary affirmative determination in the LTFV investigation of
passenger tires from Korea, 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 is
found in the Issues and Decision Memorandum.\2\
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\1\ See 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, 86 FR 501 (January 6, 2021)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
\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
Republic of Korea,'' dated concurrently with, and herby 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
Korea. 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 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 at 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.
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 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 Letters, ``In Lieu of Verification
Supplemental,'' dated March 8, 2021; see also Hankook's Letter,
``Passenger Vehicle and Light Truck Tires from the Republic of Korea
(A-580-908): Verification Questionnaire Response,'' dated March 16,
2021, and Nexen's Letter, ``Passenger Vehicle and Light Truck Tires
from South Korea: Response to Request for Information In Lieu of
Verification,'' dated March 17, 2021.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings
related to our requests for information in lieu of verification, we
made changes to the margin calculations regarding Hankook Tire &
Technology Co. Ltd. (Hankook) and Nexen Tire Corporation (Nexen). For a
discussion of these changes, see the Issues and Decision Memorandum as
well as the final analysis memoranda for Hankook and Nexen.\7\
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\7\ See Memoranda, ``Analysis for the Final Determination of the
Less-Than-Fair Value Investigation of Passenger Vehicle and Light
Truck Tires from South Korea: Final Margin Analysis for Hankook Tire
& Technology Co. Ltd.'' dated May 21, 2021; ``Analysis for the Final
Determination of the Less-Than-Fair Value Investigation of Passenger
Vehicle and Light Truck Tires from South Korea: Final Margin
Analysis for Nexen Tire Corporation.'' dated May 21, 2021.
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All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all other producers and exporters
not individually investigated shall be 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. Pursuant to section 735(c)(5)(B) of the Act, if the estimated
weighted-average dumping margins established for all exporters and
producers individually examined are zero, de minimis or determined
based entirely on facts otherwise available, Commerce may use any
reasonable method to establish the estimated weighted-average dumping
margin for all other producers or exporters.
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
[[Page 28570]]
available. Commerce calculated the all-others rate using a weighted
average of the estimated weighted-average dumping margins calculated
for the examined respondents weighted by each respondent's publicly-
ranged total U.S. sale values for the merchandise under
consideration.\8\
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\8\ With two respondents under examination, Commerce normally
calculates: (A) An average, weighted by each respondent's publicly-
ranged U.S. sale quantity for the merchandise under consideration,
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) an average, weighted by each company's
publicly-ranged U.S. sale quantities for the merchandise under
consideration, of the estimated weighted-average dumping margins
calculated for the examined respondents. Commerce then compares (B)
and (C) to (A) and selects either the (B) or (C) rate based on 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 are 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 ' Memorandum ``Final
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 notice.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter or producer dumping
margin
(percent)
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Hankook Tire & Technology Co. Ltd........................... 27.05
Nexen Tire Corporation...................................... 14.72
All Others.................................................. 21.74
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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 liquidation of all appropriate entries of passenger tires from
Korea, as described in Appendix I of this notice, which are 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.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit as follows:
(1) The cash deposit rate for the respondents listed above will be
equal to the company-specific estimated weighted-average dumping margin
determined in this final determination; (2) if the exporter is not a
company 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.
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) 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
antidumping duty 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 disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the 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
pursuant to 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.
[[Page 28571]]
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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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 from the Preliminary Determination
V. Application of Facts Available and Use of Adverse Inference
VI. Discussion of the Issues
Comment 1: Application of Partial Adverse Facts Available (AFA)
to Certain Downstream Sales of Hankook
Comment 2: Hankook's Revised Home and U.S. Market Sales Data
Comment 3: Hankook's Minor Corrections
Comment 4: Hankook's Warranty Expenses
Comment 5: Application of Partial AFA to Nexen's Sample Sales
Comment 6: Nexen's CEP Offset
Comment 7: Nexen's Noise Reduction Foam and Special Wrapping
Costs
VII. Recommendation
[FR Doc. 2021-11262 Filed 5-26-21; 8:45 am]
BILLING CODE 3510-DS-P