Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Notice of Remand Proceeding and Reopening of 2017-2018 Antidumping Duty Administrative Review Record Publication: Federal Register Agency: International Trade Administration Byline: James Maeder Date: 27 October 2021 Subjects: American Government , Tires

[Federal Register Volume 86, Number 205 (Wednesday, October 27, 2021)]
[Notices]
[Pages 59367-59369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23429]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-016]


Certain Passenger Vehicle and Light Truck Tires From the People's 
Republic of China: Notice of Remand Proceeding and Reopening of 2017-
2018 Antidumping Duty Administrative Review Record

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

SUMMARY: The Department of Commerce (Commerce) is conducting a remand 
of the 2017-2018 administrative review of the antidumping duty (AD) 
order on certain passenger vehicle and light truck tires from the 
People's Republic of China (China), which includes a limited reopening 
of the record. Commerce received a notification from U.S. Customs and 
Border Protection (CBP) that it found discrepancies and inaccuracies 
between the sales information certain parties reported during the 2017-
2018 administrative review and that reported to CBP at the time of 
entry. Accordingly, Commerce intends to reopen the record of the 2017-
2018 AD administrative review and reconsider the final results of the 
2017-2018 review. Commerce is providing notice of the remand and the 
reopening of the record, and further, inviting participation from 
interested parties.

DATES: Applicable October 27, 2021.

FOR FURTHER INFORMATION CONTACT: Charles DeFilippo, AD/CVD Operations, 
Office VII, Enforcement & Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401

[[Page 59368]]

Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
3979.

SUPPLEMENTARY INFORMATION:

Background

    On April 22, 2020, Commerce published in the Federal Register the 
final results of the administrative review of the AD order on passenger 
tires from China covering the period August 1, 2017, through July 31, 
2018.\1\
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    \1\ See Certain Passenger Vehicle and Light Truck Tires from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review; 2017-2018, 85 FR 22396 (April 22, 2020) 
(2017-2018 Final Results), and accompanying Issues and Decision 
Memorandum.
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    Pirelli Tyre Co., Ltd., Pirelli Tyre S.p.A, and Pirelli Tire LLC 
(collectively, Pirelli) challenged the 2017-2018 Final Results and 
sought review by the U.S. Court of International Trade (CIT). Pirelli 
moved for the proceedings to be stayed until a final decision was 
rendered in the appeal of China Manufacturers Alliance, LLC v. United 
States.\2\ The CIT granted the motion and stayed the proceedings.
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    \2\ See 357 F. Supp. 3d 1364 (2019).
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    On May 20, 2021, CBP notified Commerce that it had identified 
inaccuracies in the sales prices on imports of passenger tires from 
China reported to Commerce during the 2017-2018 administrative 
review.\3\ Specifically, CBP compared the questionnaire responses 
submitted by mandatory respondent Shandong New Continent (SNC) to 
Commerce with CBP importation records and found significant 
undervaluation.\4\ According to the CBP referral memorandum, the values 
submitted to CBP were approximately $2.6 million lower than the values 
submitted to Commerce.\5\ The CBP referral memorandum raises serious 
concerns and questions regarding the U.S. sales information reported by 
SNC during the 2017-2018 administrative review. Commerce used SNC's 
U.S. sales information to calculate its company specific weighted-
average dumping margin, and SNC's margin served as the basis for the 
rate assigned to the non-individually examined respondents eligible for 
a separate rate.\6\
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    \3\ See Memorandum, ``Referral Memorandum from U.S. Customs and 
Border Protection on the Misreporting of Sales Information for 
Entries Covered in the 2017-2018 Antidumping Duty Administrative 
Review,'' dated concurrently with this notice (CBP Referral 
Memorandum).
    \4\ Id. at 1.
    \5\ Id.
    \6\ See 2017-2018 Final Results.
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    As a result, the United States requested that the CIT remand the 
administrative review for Commerce to evaluate the information provided 
by CBP and further examine the issue. On September 20, 2021, the CIT 
lifted the stay on the action and granted the United States' motion for 
remand.\7\
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    \7\ See Pirelli Tyre Co., Ltd., et al. v. United States, CIT Ct. 
No. 20-00115, Slip Op 21-122 (September 20, 2021); see also China 
Manufacturers Alliance, LLC v. United States, 1 F. 4th 1028 (Fed. 
Cir. 2021).
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Notification to Interested Parties

    Commerce is hereby notifying interested parties of the remand of 
the 2017-2018 administrative review and the reopening of the record. We 
intend to place CBP's referral letter and accompanying information on 
the record of this remand proceeding in Enforcement and Compliance's 
Antidumping Duty and Countervailing Duty Centralized Electronic Service 
System (ACCESS) within five days of publication of this notice. We will 
address the discrepancies and inaccuracies of SNC's sales information 
in the remand proceeding concerning this administrative review.
    Commerce intends to provide interested parties with the opportunity 
to participate in this remand proceeding, including through the 
submission of comments, and, if appropriate, new factual information 
and verification. Specifically, Commerce will notify parties on the 
segment-specific service list for this remand segment of a schedule for 
comments. In addition, Commerce may request factual information from 
any person to assist in making its determination and may verify 
submissions of factual information, if Commerce determines that such 
verification is appropriate. Based on our analysis on remand we may 
revise the 2017-2018 Final Results, including by adjusting SNC's 
dumping margin as appropriate.
    Parties are also hereby notified that this is the only notice that 
Commerce intends to publish in the Federal Register concerning this 
remand proceeding and reopening of the record. Interested parties that 
wish to participate in the remand proceeding, and receive notice of the 
final redetermination, must submit their letters of appearance as 
discussed below. Further, any party desiring access to business 
proprietary information in these proceedings must file an application 
for access to business proprietary information under administrative 
protective order (APO), as discussed below.

Scope of the Order

    The scope of this order 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 order 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 
is among 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, 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) new pneumatic tires, of rubber, of a size that is not listed in 
the passenger car section or light truck section of the Tire and Rim 
Association Year Book;
    (3) pneumatic tires, of rubber, that are not new, including 
recycled and retreaded tires;
    (4) non-pneumatic tires, such as solid rubber tires;
    (5) tires designed and marketed exclusively as temporary use spare 
tires for passenger vehicles which, in addition, exhibit each of the 
following physical characteristics:

[[Page 59369]]

    (a) The size designation and load index combination molded on the 
tire's sidewall are listed in Table PCT-1B (``T'' Type 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;
    (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.
    The products covered by the order 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: 
4011.90.2050, 4011.99.45.10, 4011.99.45.50, 4011.99.85.10, 
4011.99.85.50, 8708.70.45.30, 8708.70.45.45, 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.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
ACCESS.\8\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due. Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information.\9\
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    \8\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement 
and Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19, 85 FR 17006 (March 26, 2020); see also Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
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Letters of Appearance and Administrative Protective Order

    Interested parties that wish to participate in this remand 
proceeding and be added to the public service list must file a letter 
of appearance in accordance with 19 CFR 351.103(d)(1).
    Interested parties must submit applications for disclosure under 
the APO in accordance with the procedures outlined in Commerce's 
regulations at 19 CFR 351.305. Those procedures apply to this remand 
proceeding.

    Dated: October 22, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
[FR Doc. 2021-23429 Filed 10-26-21; 8:45 am]
BILLING CODE 3510-DS-P