Passenger Vehicle and Light Truck Tires From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination |
|---|
|
Christian Marsh
Department of Commerce
27 May 2021
[Federal Register Volume 86, Number 101 (Thursday, May 27, 2021)]
[Notices]
[Pages 28566-28569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11265]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-829]
Passenger Vehicle and Light Truck Tires From the Socialist
Republic of Vietnam: Final Affirmative Countervailing Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of passenger vehicle and light truck tires (passenger tires) from the
Socialist Republic of Vietnam (Vietnam).
DATES: Applicable May 27, 2021.
FOR FURTHER INFORMATION CONTACT: Michael Romani or Thomas Schauer, 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) 482-0198 or (202)
482-0410, respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 10, 2020, Commerce published the Preliminary
Determination in the Federal Register.\1\ In addition to the Government
of Vietnam (GOV), the mandatory respondents in this investigation are
Kumho Tire (Vietnam) Co., Ltd. (KTV) and Sailun (Vietnam) Co., Ltd.
(Sailun). In the Preliminary Determination, and in accordance with
section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), and
19 CFR 351.210(b)(4), Commerce aligned the final countervailable duty
(CVD) determination with the final antidumping duty (AD)
determination.\2\
---------------------------------------------------------------------------
\1\ See Passenger Vehicle and Light Truck Tires from the
Socialist Republic of Vietnam: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination, 85 FR 71607
(November 10, 2020) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
\2\ See Preliminary Determination, 85 FR at 71608.
---------------------------------------------------------------------------
A summary of the events that occurred since Commerce published the
Preliminary Determination is found in the Issues and Decision
Memorandum.\3\ 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 http://access.trade.gov. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty 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).
---------------------------------------------------------------------------
Period of Investigation
The period of investigation is January 1, 2019, through December
31, 2019.
Scope of the Investigation
The products covered by this investigation are passenger tires from
Vietnam. For a complete description of the scope of the 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.\4\ We received comments
from interested parties on the Preliminary Scope Decision Memorandum,
which we address in the Final Scope Decision Memorandum.\5\ 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 determinations issued in the concurrent AD
investigations.\6\ See Appendix I for the final scope of the
investigation.
---------------------------------------------------------------------------
\4\ 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).
\5\ 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, and hereby adopted by, this notice (Final
Scope Decision Memorandum).
\6\ 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).
---------------------------------------------------------------------------
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 Act.\7\
---------------------------------------------------------------------------
\7\ See Commerce's Letters, dated February 18, 2021; see also
GOV's Letter, ``Passenger Vehicle and Light Truck Tires from the
Socialist Republic of Vietnam: GOV's Verification Questionnaire
Response,'' dated February 26, 2021; KTVs Letter, ``Countervailing
Duty Investigation of Passenger Vehicle and Light Truck Tires from
Vietnam--Response to February 18 In Lieu of Verification
Questionnaire,'' dated February 26, 2021; and Sailun's Letter,
``Sailun Verification Questionnaire Response in the Countervailing
Duty Investigation of Passenger Vehicle and Light Truck Tires
(``PVLT'') From Vietnam (C-552-829),'' dated February 26, 2021.
---------------------------------------------------------------------------
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by parties, to which we responded in the Issues and
Decision Memorandum, see Appendix II of this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found countervailable,
Commerce determines that there is a subsidy, i.e., a financial
contribution by an ``authority'' that gives rise to a benefit to the
recipient, and that the subsidy is specific.\8\ For a full
[[Page 28567]]
description of the methodology underlying this final determination, see
the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our review and analysis of the record and the comments
received, we made certain changes to the countervailable subsidy rate
calculations. For discussion of these changes, see the Issues and
Decision Memorandum.
All-Others Rate
Section 705(c)(5)(A) of the Act provides that in the final
determination, Commerce shall determine an all-others rate for
companies not individually examined. This rate shall be an amount equal
to the weighted average of the estimated subsidy rates established for
those companies individually examined, excluding any rates that are
zero, de minimis, or based entirely under section 776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for KTV and Sailun 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
individual estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged values for the
merchandise under consideration.\9\
---------------------------------------------------------------------------
\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). 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, see Memorandum, ``Countervailing Duty Investigation of
Passenger Vehicle and Light Truck Tires from the Socialist Republic
of Vietnam: Calculation of All-Others Rate,'' dated concurrently
with this notice.
---------------------------------------------------------------------------
Final Determination
We determine the countervailable subsidy rates to be:
------------------------------------------------------------------------
Subsidy
Company rate
(percent)
------------------------------------------------------------------------
Kumho Tire (Vietnam) Co., Ltd.............................. 7.89
Sailun (Vietnam) Co., Ltd.................................. 6.23
All Others................................................. 6.46
------------------------------------------------------------------------
Disclosure
We intend to disclose the calculations performed in this final
determination to interested parties within five days of any public
announcement or, if there is no public announcement, within five days
of the date of the publication of this notice in the Federal Register,
in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of all passenger
tires from Vietnam, that were entered, or withdrawn from warehouse, for
consumption on or after November 10, 2020, the date of the publication
of the Preliminary Determination in the Federal Register.
In accordance with section 703(d) of the Act, effective March 10,
2021, we instructed CBP to discontinue the suspension of liquidation of
all entries, but to continue the suspension of liquidation of all
entries between November 10, 2020, through March 9, 2021.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation, and require a cash deposit of estimated
countervailable duties for such entries of subject merchandise in the
amounts indicated above, in accordance with section 706(a) of the Act.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated and all cash
deposits will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) 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 of passenger
tires from Vietnam no later than 45 days after our final determination.
In addition, we are making available to the ITC all non-privileged and
non-proprietary information related to this investigation. We will
allow the ITC access to all privileged and business proprietary
information in our files, provided the ITC confirms that it will not
disclose such information, either publicly or under an administrative
protective order (APO), without the written consent of the Assistant
Secretary for Enforcement and Compliance.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to the
parties subject to 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 terms of an APO is a violation subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 705(d) and 777(i) 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
[[Page 28568]]
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 size Metric size Load index
------------------------------------------------------------------------
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
------------------------------------------------------------------------
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 Final Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether International and U.S. Law Permits Commerce
to Countervail Exchanges of Undervalued Currency
Comment 2: Whether Commerce's Promulgation of the Currency
Regulations in the Absence of Legislative Authority Is Outside Its
Legal Authority
Comment 3: Whether an Exchange of Currency Constitutes a
Financial Contribution
Comment 4: Whether the Currency Program Is Specific
Comment 5: Whether the Vietnamese Dong Was Undervalued During
the POI
Comment 6: Whether Countervailing Currency Exchanges Results in
a Double Remedy
Comment 7: How the Subsidy Rate for the Currency Program Should
Be Calculated
Comment 8: Whether Import Duty Exemptions for Raw Materials Are
Countervailable
Comment 9: Whether Commerce Should Revise the Benchmark for the
Provision of Natural Rubber to KTV
Comment 10: Whether KTV's Preferential Rent is Countervailable
[[Page 28569]]
Comment 11: Whether Sailun Used the Program on Preferential Rent
Comment 12: Whether Commerce Should Revise the Benchmark for
Preferential Rent for KTV
VII. Recommendation
[FR Doc. 2021-11265 Filed 5-26-21; 8:45 am]
BILLING CODE 3510-DS-P