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

 
CONTENT
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