Truck and Bus Tires From the People's Republic of China: Amended Final Determination and Countervailing Duty Order

Citation84 FR 4434
Record Number2019-02657
Published date15 February 2019
SectionNotices
CourtInternational Trade Administration
Federal Register, Volume 84 Issue 32 (Friday, February 15, 2019)
[Federal Register Volume 84, Number 32 (Friday, February 15, 2019)]
                [Notices]
                [Pages 4434-4436]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-02657]
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                DEPARTMENT OF COMMERCE
                International Trade Administration
                [C-570-041]
                Truck and Bus Tires From the People's Republic of China: Amended
                Final Determination and Countervailing Duty Order
                AGENCY: Enforcement and Compliance, International Trade Administration,
                Department of Commerce.
                SUMMARY: On November 1, 2018, the Court of International Trade (CIT)
                remanded the International Trade Commission's (ITC) negative injury
                determination on truck and bus tires from the People's Republic of
                China (China). On January 30, 2019, the ITC filed its remand
                determination, finding material injury to an industry in the United
                States by reason of imports of truck and bus tires from China. Based on
                affirmative final determinations by the Department of Commerce
                (Commerce) and the ITC, Commerce is issuing a countervailing duty order
                on truck and bus tires from the China. In addition, Commerce is
                amending its final determination to correct ministerial errors.
                Therefore, Commerce will direct U.S. Customs and Border Protection
                (CBP) to suspend liquidation and collect cash deposits on entries of
                truck and bus tires from China at the ad valorem rates listed below.
                DATES: Applicable February 15, 2019.
                FOR FURTHER INFORMATION CONTACT: Dana Mermelstein or Lana Nigro, 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) 482-1391 or (202) 482-1779,
                respectively.
                SUPPLEMENTARY INFORMATION:
                Background
                 On March 17, 2017, the ITC published its final determination that
                an industry in the United States was not materially injured or
                threatened with material injury by reason of imports of truck and bus
                tires from China.\1\ The United Steel, Paper and Forestry, Rubber,
                Manufacturing, Energy, Allied Industrial and Service Workers
                International Union, AFL-CIO, CLC (the petitioner) challenged the ITC's
                final negative determination, and on November 1, 2018, the CIT remanded
                the determination to the ITC for reconsideration.\2\ On January 30,
                2019, upon remand, the ITC found that a U.S. industry is materially
                injured within the meaning of section 705(b)(1)(A)(i) of the Act, by
                reason of subsidized imports of truck and bus tires from China.\3\
                Further, the ITC determined that critical circumstances do not exist
                with respect to imports of truck and bus tires from China.
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                 \1\ See Truck and Bus Tires from China, 82 FR 14232 (March 17,
                2017) (ITC Final Determination).
                 \2\ See United Steel, Paper and Forestry, Rubber, Mfg., Energy,
                Allied Indus. and Serv. Workers Int'l Union v. United States, Slip
                Op. 18-151 (CIT November 1, 2018).
                 \3\ See ITC Notification Letter to the Secretary of Commerce,
                referencing ITC Investigation Nos. 701-TA-556 and 731-TA-1311, dated
                February 8, 2019 (ITC Notification).
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                 On February 8, 2019, pursuant to the U.S. Court of Appeals for the
                Federal Circuit's (CAFC) opinion in Diamond Sawblades Manufacturers
                Coalition v. United States, 626 F.3d 1374, 1381 (Fed. Cir. 2010), the
                ITC notified Commerce of its determination upon remand.\4\ In Diamond
                Sawblades, the CAFC clarified that the same procedures for issuance of
                an order and collection of cash deposits apply when a material injury
                determination is made upon remand, and that the ITC should provide
                notice to Commerce of its remand determination at the time that it is
                issued, notwithstanding the pendency of ongoing litigation.\5\
                Moreover, the Court held that Commerce's duty to publish an order is
                triggered by the ITC's notification of its affirmative injury
                determination, rather than the date of the publication of the notice of
                such determination.\6\
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                 \4\ Id.
                 \5\ Diamond Sawblades, 626 F.3d at 1381-82.
                 \6\ Id. at 1379, n.2.
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                Scope of the Order
                 The products covered by this order are truck and bus tires from
                China. For a complete description of the scope of this order, see the
                Appendix to this notice.
                Amendment to the Final Determination
                 On January 30, 2017, and February 1, 2017, Shanghai Huayi Group
                Corporation Limited (Double Coin) and Guizhou Tyre Co., Ltd. and
                Guizhou Tyre Import and Export Co., Ltd. (collectively GTC),
                respectively, timely alleged that the Final Determination \7\ contained
                certain ministerial errors and requested that Commerce correct such
                errors.
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                 \7\ See Truck and Bus Tires from the People's Republic of China:
                Final Affirmative Countervailing Duty Determination, Final
                Affirmative Critical Circumstances Determination, in Part, 82 FR
                8606 (January 27, 2019) (Final Determination).
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                 Commerce reviewed the record and on February 14, 2017, agreed that
                certain errors referenced in Double Coin's and GTC's allegations
                constitute ministerial errors within the meaning of section 705(e) of
                the Act and 19 CFR 351.224(f).\8\ Pursuant to 19 CFR 351.224(e),
                Commerce is amending the Final Determination to reflect the correction
                of the ministerial errors described in the Ministerial Error
                Memorandum.\9\ Based on our correction of the ministerial errors in
                Double
                [[Page 4435]]
                Coin's calculation, the subsidy rate for Double Coin decreased from
                38.61 ad valorem to 20.98 ad valorem.\10\ Based on our correction of
                the ministerial errors in GTC's calculation, the subsidy rate for GTC
                decreased from 65.46 ad valorem to 63.34 percent ad valorem.\11\
                Because in the Final Determination, we based the ``all-others'' rate on
                Double Coin's and GTC's ad valorem subsidy rates, the corrections
                described above also required that we recalculate the ``all-others''
                rate. This recalculation decreased the ``all-others'' rate determined
                in the Final Determination from 52.04 percent ad valorem to 42.16
                percent ad valorem.\12\
                 \9\ This amended final determination recalculated the subsidy rates
                for certain LTAR programs that are used in the concurrent antidumping
                duty investigation for the calculation of domestic pass-through subsidy
                rate. These amended subsidy rates are as follows:
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                 \8\ See Memorandum, ``Countervailing Duty Investigation of Truck
                and Bus Tires from the People's Republic of China: Allegations of
                Ministerial Errors,'' dated February 14, 2017 (Ministerial Error
                Memorandum).
                 \10\ Id.
                 \11\ Id.
                 \12\ Id.
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                 Inputs provided at LTAR Double coin GTC
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                Carbon Black.................. Same as Final.... 3.73%.
                Nylon Cord.................... Same as Final.... 4.05%.
                Natural Rubber................ 0.02%............ Same as Final.
                Synthetic Rubber and Butadiene 2.35%............ 6.49%.
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                Countervailing Duty Order
                 On February 8, 2019, in accordance with section 705(d) of the Act,
                the ITC notified Commerce of its remand determination in this
                investigation, in which it found that imports of truck and bus tires
                are materially injuring a U.S. industry.\13\ Therefore, in accordance
                with section 705(c)(2) of the Act, we are publishing this
                countervailing duty order.
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                 \13\ See ITC Notification.
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                Suspension of Liquidation
                 In accordance with section 706 of the Act, Commerce will direct CBP
                to reinstitute the suspension of liquidation of subject merchandise
                from China, effective the date of publication of this countervailing
                duty order in the Federal Register, and to assess, upon further
                instruction by Commerce pursuant to section 706(a)(1) of the Act,
                countervailing duties for each entry of the subject merchandise in an
                amount based on the net countervailable subsidy rates for the subject
                merchandise. On or after the date of publication of this countervailing
                duty order in the Federal Register, we will instruct CBP to require, at
                the same time as importers would normally deposit estimated duties on
                this merchandise, cash deposits for each entry of subject merchandise
                equal to the rates noted below. These instructions suspending
                liquidation will remain in effect until further notice. The ``all-
                others'' rate applies to all producers or exporters not specifically
                listed, as appropriate.
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                 Subsidy rate
                 Company (percent)
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                Guizhou Tyre Import and Export Co., Ltd; Guizhou Tyre 63.34
                 Co., Ltd...............................................
                Shanghai Huayi Group Corporation Limited; Double Coin 20.98
                 Holdings Ltd.; Double Coin Group (Jiangsu) Tyre Co.,
                 Ltd.; Double Coin Group (Chongqing) Tyre Co., Ltd.;
                 Double Coin Group Shanghai Donghai Tyre Co. Ltd.;
                 Double Coin Group (Xinjiang) Kunlun Tyre Co., Ltd......
                All-Others.............................................. 42.16
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                Notifications to Interested Parties
                 This notice constitutes the countervailing duty order with respect
                to truck and bus tires from China pursuant to section 706(a) of the
                Act. Interested parties can find a list of countervailing duty orders
                currently in effect at http://enforcement.trade.gov/stats/iastatsl.html.
                 This order is issued and published in accordance with section
                706(a) of the Act and 19 CFR 351.211(b).
                 Dated: February 12, 2019.
                Christian Marsh,
                Deputy Assistant Secretary for Enforcement and Compliance.
                Appendix
                Scope of the Order
                 The scope of the order covers truck and bus tires. Truck and bus
                tires are new pneumatic tires, of rubber, with a truck or bus size
                designation. Truck and bus tires covered by this investigation may
                be tube-type, tubeless, radial, or non-radial.
                 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 one of the following suffixes in their tire size designation,
                which also appear on the sidewall of the tire:
                 TR--Identifies tires for service on trucks or buses to
                differentiate them from similarly sized passenger car and light
                truck tires; and
                 HC--Identifies a 17.5 inch rim diameter code for use on low
                platform trailers.
                 All tires with a ``TR'' or ``HC'' suffix in their size
                designations are covered by this investigation regardless of their
                intended use.
                 In addition, all tires that lack one of the above suffix
                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 ``Truck-Bus'' 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.
                 Truck and bus tires, whether or not mounted on wheels or rims,
                are included in the scope. However, if a subject tire is imported
                mounted on a wheel or rim, only the tire is covered by the scope.
                Subject merchandise includes truck and bus tires produced in the
                subject country whether mounted on wheels or rims in the subject
                country or in a third country. Truck and bus tires are covered
                whether or not they are accompanied by other parts, e.g., a wheel,
                rim, axle parts, bolts, nuts, etc. Truck and bus tires that enter
                attached to a vehicle are not covered by the scope.
                 Specifically excluded from the scope of this investigation are
                the following types of tires: (1) Pneumatic tires, of rubber, that
                are not new, including recycled and retreaded tires; (2) non-
                pneumatic tires, such as solid rubber tires; and (3) tires that
                exhibit each of the following physical characteristics: (a) The
                designation ``MH'' is molded into the tire's sidewall as part of the
                size designation; (b) the tire incorporates a warning, prominently
                [[Page 4436]]
                molded on the sidewall, that the tire is for ``Mobile Home Use
                Only;'' and (c) the tire is of bias construction as evidenced by the
                fact that the construction code included in the size designation
                molded into the tire's sidewall is not the letter ``R.''
                 The subject merchandise is currently classifiable under
                Harmonized Tariff Schedule of the United States (HTSUS) subheadings:
                4011.20.1015 and 4011.20.5020. Tires meeting the scope description
                may also enter under the following HTSUS subheadings: 4011.69.0020,
                4011.69.0090, 4011.70.00, 4011.90.80, 4011.99.4520, 4011.99.4590,
                4011.99.8520, 4011.99.8590, 8708.70.4530, 8708.70.6030,
                8708.70.6060, and 8716.90.5059.\14\
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                 \14\ On August 26, 2016, Commerce included HTSUS subheadings
                4011.69.0020, 4011.69.0090, and 8716.90.5059 to the case reference
                files, pursuant to requests by CBP and the petitioner. See
                Memorandum to the File entitled, ``Requests from Customs and Border
                Protection and the Petitioner to Update the ACE Case Reference
                File,'' dated August 26, 2016. On January 19, 2017, Commerce
                included HTSUS subheadings 4011.70.00 and 4011.90.80 to the case
                reference files, pursuant to requests by CBP. See Memorandum to the
                File entitled, ``Requests from Customs and Border Protection to
                Update the ACE Case Reference File,'' dated January 19, 2017.
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                 While HTSUS subheadings are provided for convenience and for
                customs purposes, the written description of the subject merchandise
                is dispositive.
                [FR Doc. 2019-02657 Filed 2-14-19; 8:45 am]
                BILLING CODE 3510-DS-P
                

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