Passenger Vehicle and Light Truck Tires From Thailand: Final Affirmative Determination of Sales at Less Than Fair Value |
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Ryan Majerus
Department of Commerce
27 May 2021
[Federal Register Volume 86, Number 101 (Thursday, May 27, 2021)]
[Notices]
[Pages 28548-28551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11264]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-549-842]
Passenger Vehicle and Light Truck Tires From Thailand: 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 Thailand
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: Leo Ayala or Myrna Lobo, 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) 482-3945 or (202) 482-2371,
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 Thailand, 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
Republic of Thailand: Preliminary Affirmative Determination of Sales
at Less Than Fair Value, Postponement of Final Determination, and
Extension of Provisional Measures, 86 FR 517 (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
Thailand,'' 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
Thailand. 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.
[[Page 28549]]
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, ``In Lieu of Verification
Supplemental,'' dated March 8, 2021; see also SRT's Letter,
``Passenger Vehicle and Light Truck Tires from the Republic of Korea
(A-549-842): Verification Questionnaire Response,'' dated March 16,
2021; and LLIT's Letter, ``Passenger Vehicle and Light Truck Tires
from South Korea: Response to Request for Information In Lieu of
Verification,'' dated March 24, 2021.
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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 verification, we made
changes to the margin calculations regarding Sumitomo Rubber (Thailand)
Co., Ltd. (SRT) and LLIT (Thailand) Co., Ltd. (LLIT). For a discussion
of these changes, see Comments 1 through 5 of the Issues and Decision
Memorandum.\7\
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\7\ See Issues and Decision Memorandum.
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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 SRT and LLIT that are not zero, de minimis,
or based entirely on facts otherwise available. Commerce calculated the
all-others rate using a weighted-average of the estimated weighted-
average dumping margins calculated for the individually examined
mandatory respondents using each company'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) 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 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 FR notice.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
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Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Sumitomo Rubber (Thailand) Co., Ltd......................... 14.62
LLIT (Thailand) Co., Ltd.................................... 21.09
All Others.................................................. 17.08
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Disclosure
We intend to disclose the calculations performed in this final
determination within is 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
Thailand, 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 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 final 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.
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 AD order
directing CBP to assess, upon further instruction by Commerce, AD
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 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.
[[Page 28550]]
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.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations.
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:
------------------------------------------------------------------------
American standard 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
[[Page 28551]]
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. Changes from the Preliminary Determination
IV. Scope of the Investigation
V. Discussion of the Issues
Comment 1: SRT's U.S. Date of Sale
Comment 2: SRT's Direct Expenses
Comment 3: SRT's Warranty Costs
Comment 4: SRT's Differential Pricing Analysis
Comment 5: Whether LLIT Satisfies the Requirements for the Duty
Drawback Adjustment and the Appropriate Calculation Methodology for
LLIT and SRT
VI. Recommendation
[FR Doc. 2021-11264 Filed 5-26-21; 8:45 am]
BILLING CODE 3510-DS-P