Truck and Bus Tires From the People's Republic of China: Antidumping Duty Order

AGENCY:

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

SUMMARY:

On November 1, 2018 the U.S. Court of International Trade (CIT) remanded the International Trade Commission's (ITC) final negative injury determination on truck and bus tires from the People's Republic of China (China). On January 30, 2019, the ITC filed its final 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 an antidumping duty order on truck and bus tires from China. 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:

Yang Jin Chun or Andre Gziryan, 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) 482-5760 and (202) 482-2201, respectively.

SUPPLEMENTARY INFORMATION:

Background

In accordance with sections 735(d) and 777(i)(1) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 351.210(c), on January 27, 2017, Commerce published affirmative final determinations of sales at less than fair value and critical circumstances in the investigation of truck and bus tires from China. On March 13, 2017, the ITC notified Commerce of its final determination that an industry in the United States is not materially injured or threatened with material injury within the meaning of section 735(b)(1)(A) of the Act by reason of imports of truck and bus tires from China at less than fair value. Accordingly, Commerce instructed CBP to liquidate entries of subject merchandise without regard to antidumping duties. On November 1, 2018, the CIT remanded the ITC's final negative determination. On January 30, 2019, upon remand, the ITC issued its final determination, in which the ITC found that an industry in the United States is materially injured by reason of imports of truck and bus tires from China. However, in its final determination upon remand, the ITC found that critical circumstances do not exist with respect to imports of subject merchandise from China that are subject to Commerce's final affirmative critical circumstances finding.

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 this determination upon remand. In Diamond Sawblades Manufacturers Coalition, 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. Moreover, the CAFC 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.

Scope of the Order

The products covered by this antidumping duty order are truck and bus tires. For a complete description for the scope of the order, see the “Scope of the Order” in the Appendix of this notice.

Antidumping Duty Order

As stated above, upon remand, the ITC issued its final affirmative determination. In accordance with section 735(d) of the Act and Diamond Sawblades Manufacturers Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 2010), the ITC notified Commerce of its final determination in its investigation, in which it found that an industry in the United States is materially injured by reason of imports of truck and bus tires from China. Therefore, in accordance with section 735(c)(2) of the Act, we are publishing this antidumping duty order.

Accordingly, in accordance with section 736(a)(1) of the Act, Commerce will direct CBP to assess, upon further instruction by Commerce, antidumping duties equal to the amount by which the normal value of the merchandise exceeds the export price (or constructed export price) of the merchandise, for all relevant entries of truck and bus tires from China. These antidumping duties will be assessed on unliquidated entries of truck and bus tires from China entered, or withdrawn from warehouse, for consumption on or after the effective date of this antidumping duty order.

Suspension of Liquidation

In accordance with section 735(c)(1)(B) of the Act, effective the publication date of this order, we will instruct CBP to suspend liquidation on all entries of truck and bus tires from China. These instructions suspending liquidation will remain in effect until further notice.

We will also instruct CBP to require cash deposits at rates equal to the estimated weighted-average dumping margins indicated below. Accordingly, effective the publication date of this order, CBP will require, at the same time as importers would normally deposit estimated duties on this subject merchandise, a cash deposit at rates equal to the estimated weighted-average dumping margins adjusted for domestic pass-through subsidies and export subsidies found in the amended final determination of the companion countervailing duty investigation of this merchandise imported from China.

Critical Circumstances

In its final affirmative determination upon remand, the ITC found no critical circumstances on imports of truck and bus tires from China. Accordingly, Commerce will not instruct CBP to suspend entries pursuant to section 733(e)(2) of the Act.

Estimated Weighted-Average Dumping Margins

The estimated weighted-average dumping margins are as follows:

Notifications to Interested Parties

This notice constitutes the antidumping duty order with respect to truck and bus tires from China pursuant to section 736(a) of the Act. Interested parties can find a list of antidumping duty orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html .

This order is published in accordance with sections 736(a) of the Act and 19 CFR 351.211.

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 order 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 order 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 order 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 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.

While HTSUS subheadings are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive.