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Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review; 2012-2013

American Government Special Collections Reference Desk

American Government Cars in China

Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review; 2012-2013

Paul Piquado
Department of Commerce
October 10, 2014


[Federal Register Volume 79, Number 197 (Friday, October 10, 2014)]
[Notices]
[Pages 61291-61295]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24275]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-912]


Certain New Pneumatic Off-the-Road Tires From the People's 
Republic of China: Preliminary Results of Antidumping Duty 
Administrative Review; 2012-2013

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

[[Page 61292]]

SUMMARY: The Department of Commerce (``Department'') is conducting an 
administrative review of the antidumping duty order on certain new 
pneumatic off-the-road tires (``OTR tires'') from the People's Republic 
of China (``PRC''). The period of review (``POR'') is September 1, 
2012, through August 31, 2013. The review covers the following 
exporters of subject merchandise: Mandatory respondents Double Coin 
Holdings Ltd. (``Double Coin'') \1\ and Guizhou Tyre Co., Ltd./Guizhou 
Tyre Import and Export Co., Ltd. (collectively, ``GTC''), and non-
examined respondents Zhongce Rubber Group Company Limited 
(``Zhongce''),\2\ Weihai Zhongwei Rubber Co., Ltd. (``Zhongwei''), and 
Trelleborg Wheel System (Xingtai) China, Co. Ltd. (``Trelleborg''). We 
preliminarily find that GTC made sales of subject merchandise at less 
than normal value, Zhongce and Zhongwei are eligible for a separate 
rate, Double Coin failed to demonstrate eligibility for separate rate 
status and thus has been included in the PRC-wide entity, and 
Trelleborg had no shipments during the POR.
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    \1\ In Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation in Part, 78 FR 
67104, 67108 (November 8, 2013) (``Initiation Notice''), the review 
was initiated on Double Coin Group Rugao Tyre Co., Ltd.--renamed 
Double Coin Group Jiangsu Tyre Co., Ltd.--(``DC Rugao/Jiangsu''), 
Double Coin Group Shanghai Donghai Tyre Co., Ltd. (``DC Donghai''), 
and Double Coin Holdings, Ltd. (``DCH'' or ``Double Coin''). The 
respondent in this review is DCH, which exported all subject 
merchandise produced by both its wholly-owned and affiliate 
factories during the POR. DC Donghai is an affiliated producer of 
subject merchandise that did not produce OTR tires for export in the 
POR. See, e.g., Letter from Double Coin entitled, ``Section A 
Response of Double Coin Holdings and China Manufacturers Alliance, 
LLC,'' dated January 22, 2014 (``Double Coin SAQR''). DC Rugao/
Jiangsu is a majority DCH-owned subsidiary factory which, along with 
the 100 percent DCH-owned production factory (i.e., Double Coin 
Lorry Tyre Branch, a.k.a., Shanghai Heavy Tire), produced the 
subject merchandise in question during the POR. Id. The 
International Trade Department of DCH is responsible for all export 
sales of merchandise under consideration produced by both DCH's 
Shanghai Heavy Tire factory and the DC Rugao/Jiangsu factory. Id. 
Additionally, the China Manufacturers Alliance (``CMA'') is DCH's 
U.S. sales affiliate for all POR sales, and has provided and 
certified to relevant and requested sales-related information on 
behalf of the respondent. Id. Accordingly, for ease of reference we 
use ``Double Coin'' to collectively refer to each of the above 
production, export, and sales entities that comprise the respondent 
in this review, but note that DCH is the actual exporter-respondent. 
Furthermore, as discussed below, we have collapsed DCH (including 
Shanghai Heavy Tire), DC Rugao/Jiangsu, and DC Donghai into a single 
entity for the purposes of this review.
    \2\ This review was initiated on Hangzhou Zhongce Rubber Co., 
Ltd.; however, in the final results of a changed circumstances 
review, which was completed after the instant review initiated, the 
Department determined that Zhongce was the successor-in-interest to 
Hangzhou Zhongce Rubber Co., Ltd. See Certain New Pneumatic Off-the-
Road Tires From the People's Republic of China: Final Results of 
Antidumping Duty Changed Circumstances Review, 79 FR 8463 (February 
12, 2014).

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DATES:  Effective Date: October 10, 2014.

FOR FURTHER INFORMATION CONTACT: Brendan Quinn or Andrew Medley, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-5848 or (202) 482-4987, 
respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Order \3\
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    \3\ For a complete description of the scope of the order, see 
the Memorandum from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Paul Piquado, 
Assistant Secretary for Enforcement and Compliance, entitled, 
``Decision Memorandum for Preliminary Results of Antidumping Duty 
Administrative Review: Certain New Pneumatic Off-the-Road Tires from 
the People's Republic of China,'' dated September 30, 2014 
(``Preliminary Decision Memorandum'').
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    The merchandise covered by this order includes new pneumatic tires 
designed for off-the-road and off-highway use, subject to certain 
exceptions. The subject merchandise is currently classifiable under 
Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheadings: 4011.20.10.25, 4011.20.10.35, 4011.20.50.30, 
4011.20.50.50, 4011.61.00.00, 4011.62.00.00, 4011.63.00.00, 
4011.69.00.00, 4011.92.00.00, 4011.93.40.00, 4011.93.80.00, 
4011.94.40.00, and 4011.94.80.00. The HTSUS subheadings are provided 
for convenience and customs purposes only; the written product 
description of the scope of the order is dispositive.

Preliminary Determination of No Shipments

    Trelleborg submitted a timely-filed certification indicating that 
it had no shipments of subject merchandise to the United States during 
the POR.\4\ Consistent with its practice, the Department asked U.S. 
Customs and Border Protection (``CBP'') to conduct a query on potential 
shipments made by Trelleborg during the POR; CBP did not provide any 
evidence that contradicts Trelleborg's claim of no shipments.\5\ Based 
on Trelleborg's certification and our analysis of CBP information, we 
preliminarily determine that Trelleborg did not have any reviewable 
transactions during the POR. Consistent with a recently announced 
refinement to its assessment practice in non-market economy (``NME'') 
cases, the Department is not rescinding this review, in part, but 
intends to complete the review with respect to Trelleborg.\6\
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    \4\ See Letter from Trelleborg, entitled, ``Trelleborg Wheel 
Systems (Xingtai) China, Co. Ltd. Statement of No Shipments during 
the POR: New Pneumatic Off-The-Road Tires from the People's Republic 
of China,'' dated November 20, 2013.
    \5\ See CBP Message Number 3352302, dated December 18, 2013.
    \6\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011) and 
the ``Assessment Rates'' section, below.
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Preliminary Determination of Affiliation and Collapsing

    Based on the evidence presented in Double Coin's questionnaire 
responses, we preliminarily find that DCH (including Shanghai Heavy 
Tire), DC Rugao/Jiangsu, and DC Donghai are affiliated, pursuant to 
section 771(33)(E) of the Act. In addition, based on the evidence 
presented in the questionnaire responses, we preliminarily find that 
DCH (including its Shanghai Heavy Tire factory), DC Rugao/Jiangsu, and 
DC Donghai should be treated as a single entity for the purposes of 
this review (collectively, the ``DCH Single Entity''). This finding is 
based on the determination that there is significant potential for 
manipulation of price between the parties pursuant to the criteria laid 
out in 19 CFR 351.401(f), due to the high level of common ownership, 
interlocking boards and managers, and intertwined operations.\7\
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    \7\ For further discussion of the Department's affiliation and 
collapsing decision, see Memorandum to the File, entitled, ``2012-
2013 Administrative Review of the Antidumping Duty Order on Certain 
New Pneumatic Off-the-Road Tires from the People's Republic of 
China: Double Coin Affiliation and Collapsing Memorandum,'' dated 
September 30, 2014 (``Double Coin Affiliation and Collapsing 
Memo'').
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Separate Rates

    In the Initiation Notice,\8\ we informed parties of the opportunity 
to request a separate rate. In proceedings involving NME countries, the 
Department begins with a rebuttable presumption that all companies 
within the NME country are subject to government control and, thus, 
should be assigned a single weighted-average dumping margin. It is the 
Department's policy to assign all exporters of merchandise subject to 
an administrative review involving an NME country this single rate 
unless an exporter can demonstrate that it is sufficiently independent 
so as to be entitled to a separate rate. Companies that wanted to be 
considered for a separate rate in this review were required to timely 
file a separate-rate

[[Page 61293]]

application or a separate-rate certification to demonstrate their 
eligibility for a separate rate. Separate-rate applications and 
separate-rate certifications were due to the Department within 60 
calendar days of the publication of the Initiation Notice.
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    \8\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation in Part, 78 FR 
67104, 61704-05 (November 8, 2013) (``Initiation Notice'').
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    In this review, all exporters for which a review was requested 
submitted separate-rate information to rebut the presumption that, like 
all companies within the PRC, they are subject to government control 
with respect to export activities. As further discussed in the 
Preliminarily Decision Memorandum,\9\ we determine that the mandatory 
respondent Double Coin has not demonstrated that it operates free from 
government control with respect to export activities. Thus, we 
preliminary determine that Double Coin is part of the PRC-wide entity.
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    \9\ See Preliminary Decision Memorandum. For further analysis, 
including business proprietary information details, with respect to 
the denial of Double Coin's separate rate, see also the Department's 
memorandum to the File, entitled, ``2012-2013 Administrative Review 
of the Antidumping Duty Order on Certain New Pneumatic Off-the-Road 
Tires from the People's Republic of China: Analysis of the 
Preliminary Results Margin Calculation for Double Coin Holdings, 
Ltd.,'' dated concurrently with this memorandum.
---------------------------------------------------------------------------

    The remaining mandatory respondent (i.e., GTC) and non-examined 
respondents (i.e., Zhongce and Zhongwei) submitted sufficient 
information for the Department to preliminarily determine that they are 
entitled to a separate rate.\10\ A full discussion of the basis for 
granting these companies a separate rate can be found in the 
Preliminary Decision Memorandum.
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    \10\ See Preliminary Decision Memorandum. For further analysis, 
including business proprietary information details, with respect to 
the approval of GTC's separate rate request, see also the 
Department's memorandum to the File, entitled, ``2012-2013 
Administrative Review of the Antidumping Duty Order on Certain New 
Pneumatic Off-the-Road Tires from the People's Republic of China: 
Analysis of the Preliminary Results Margin Calculation for Guizhou 
Tyre Co., Ltd.,'' dated concurrently with this memorandum.
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Rate for Non-Examined Companies Which Are Eligible for a Separate Rate

    Normally, the Department's practice is to look for guidance from 
section 735(c)(5)(A) of the Tariff Act of 1930, as amended (``the 
Act''), to assign to separate rate companies that were not individually 
examined a rate equal to the average of the rates calculated for the 
individually examined respondents, excluding any rates that are zero, 
de minimis, or based entirely on adverse facts available.\11\ In this 
case, one mandatory respondent, Double Coin, is preliminarily found to 
be part of the PRC-wide entity. The other mandatory respondent, GTC, is 
receiving a separate rate for these preliminary results calculated from 
its own sales and production data. To determine a rate for the 
unselected separate rate companies, we find it appropriate to use the 
margin calculated for GTC, which was also found to be separate from the 
PRC-wide entity with respect to its export activities, and which rate 
is not zero or de minimis nor based entirely on facts available. 
Therefore, we are preliminarily assigning GTC's calculated margin as 
the rate assigned to non-examined entities which have demonstrated 
their eligibility for a separate rate.
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    \11\ See, e.g., Preliminary Determination of Sales at Less Than 
Fair Value and Partial Affirmative Determination of Critical 
Circumstances: Certain Polyester Staple Fiber from the People's 
Republic of China, 71 FR 77373, 77377 (December 26, 2006), unchanged 
in Final Determination of Sales at Less Than Fair Value and Partial 
Affirmative Determination of Critical Circumstances: Certain 
Polyester Staple Fiber from the People's Republic of China, 72 FR 
19690 (April 19, 2007).
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PRC-Wide Entity

    Double Coin, one of the companies that the Department selected as a 
mandatory respondent in this administrative review, failed to 
demonstrate absence of de facto government control over export 
activities due to the fact that its controlling shareholder is wholly-
owned by the State-owned Assets Supervision and Administration 
Commission of the State Council and the significant level of control 
this majority shareholder wields over the respondent's Board of 
Directors.\12\ As a result, we preliminarily determine that Double Coin 
is part of the PRC-wide entity.
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    \12\ See ``Separate Rates'' section of the Preliminary Decision 
Memorandum.
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    Because Double Coin provided the Department with its verified sales 
and production data, we are able to calculate a margin for an 
unspecified portion of a single PRC-wide entity, but cannot do so for 
the remaining unspecified portion of the entity. As the Department must 
calculate a single margin for the PRC-wide government controlled entity 
and there is insufficient information on the record with respect to the 
composition of the PRC-wide entity, we thus preliminarily calculated a 
simple average of the previously assigned PRC-wide rate (210.48 
percent) \13\ and Double Coin's calculated margin (0.69 percent) as the 
rate applicable to the PRC-wide entity. Accordingly, the Department 
revised the PRC-wide entity rate to 105.59 percent for these 
preliminary results. For a further discussion of the PRC-wide entity 
rate, see the Preliminary Decision Memorandum.
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    \13\ See Certain New Pneumatic Off-The-Road Tires from the 
People's Republic of China: Final Affirmative Determination of Sales 
at Less Than Fair Value and Partial Affirmative Determination of 
Critical Circumstances, 73 FR 40485, 40489 (July 15, 2008) (``LTFV 
Investigation'').
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Methodology

    The Department conducted this review in accordance with section 
751(a)(1)(B) of the Act. Export and constructed export prices were 
calculated in accordance with sections 772(a) and (b) of the Act. 
Because the PRC is a NME within the meaning of section 771(18) of the 
Act, the Department calculated normal value in accordance with section 
773(c) of the Act.
    For a full description of the methodology underlying our 
preliminary results, please see the Preliminary Decision Memorandum, 
which is hereby adopted by this notice. A list of the topics included 
in the Preliminary Decision Memorandum is attached as an Appendix to 
this notice. The Preliminary Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (``IA ACCESS''). IA ACCESS is available to registered users at 
http://iaaccess.trade.gov, and it is available to all parties in the 
Central Records Unit, room 7046 of the main Department of Commerce 
building. In addition, a complete version of the Preliminary Decision 
Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/index.html. The signed Preliminary Decision 
Memorandum and the electronic versions of the Preliminary Decision 
Memorandum are identical in content.

Preliminary Results of Review

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

[[Page 61294]]



------------------------------------------------------------------------
                                                     Weighted average
                    Exporter                          dumping margin
------------------------------------------------------------------------
Guizhou Tyre Co., Ltd./Guizhou Tyre Import and                     16.18
 Export Co., Ltd.\14\..........................
Zhongce Rubber Group Company Limited...........                    16.18
Weihai Zhongwei Rubber Co., Ltd................                    16.18
PRC-Wide Entity (includes the DCH Single Entity                   105.59
 \15\).........................................
------------------------------------------------------------------------

Disclosure and Public Comment

    The Department intends to disclose to the parties the calculations 
performed for these preliminary results within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of these preliminary results of review.\16\ 
Rebuttal briefs, limited to issues raised in the case briefs, may be 
filed no later than five days after the case briefs are filed.\17\
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    \14\ The review was initiated on Guizhou Advance Rubber Co., 
Ltd. (``GAR''), Guizhou Tyre Co., Ltd., and Guizhou Tyre Import and 
Export Co., Ltd. See Initiation Notice, 78 FR at 67108. These three 
companies were collapsed into a collective entity, GTC, in the 
investigation. See Certain New Pneumatic Off-The-Road Tires From the 
People's Republic of China; Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination, 73 FR 
9278, 9283 (February 20, 2008), unchanged in LTFV Investigation. GAR 
does not export subject merchandise; as such, we have only listed 
GTC in this section of the notice.
    \15\ As noted above, the review was initiated on DCH, DC Rugao/
Jiangsu), and DC Donghai, and each company has been preliminarily 
collapsed and treated as the DCH Single Entity for the purposes of 
this review.
    \16\ See 19 CFR 351.309(c).
    \17\ See 19 CFR 351.309(d).
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    Any interested party may request a hearing within 30 days of 
publication of this notice.\18\ Hearing requests should contain the 
following information: (1) The party's name, address, and telephone 
number; (2) the number of participants; and (3) a list of the issues to 
be discussed. Oral presentations will be limited to issues raised in 
the case and rebuttal briefs. If a request for a hearing is made, 
parties will be notified of the time and date for the hearing to be 
held at the U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230.\19\
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    \18\ See 19 CFR 351.310(c).
    \19\ See 19 CFR 351.310(d)(1).
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    Unless otherwise extended, the Department intends to issue the 
final results of this administrative review, which will include the 
results of its analysis of issues raised in the case and rebuttal 
briefs, within 120 days of publication of these preliminary results, 
pursuant to section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results of this review, the Department 
will determine, and CBP shall assess, antidumping duties on all 
appropriate entries covered by this review.\20\ The Department intends 
to issue appropriate assessment instructions to CBP 15 days after 
publication of the final results of this review.
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    \20\ See 19 CFR 351.212(b)(1).
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    For GTC, whose weighted-average dumping margin is not zero or de 
minimis (i.e., less than 0.5 percent), we will calculate importer-
specific ad valorem duty assessment rates based on the ratio of the 
total amount of dumping calculated for the importer's examined sales to 
the total entered value of those same sales in accordance with 19 CFR 
351.212(b)(1).\21\ For duty assessment rates calculated on this basis, 
we will direct CBP to assess the resulting ad valorem rate against the 
entered customs values for the subject merchandise. If the weighted-
average dumping margin for the exporter is zero or de minimis, or if 
the importer-specific assessment rate is zero or de minimis, then the 
Department will instruct CBP to liquidate the appropriate entries 
without regard to antidumping duties.
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    \21\ In these preliminary results, the Department applied the 
assessment rate calculation method adopted in Antidumping 
Proceedings: Calculation of the Weighted-Average Dumping Margin and 
Assessment Rate in Certain Antidumping Proceedings: Final 
Modification, 77 FR 8101 (February 14, 2012).
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    On October 24, 2011, the Department announced a refinement to its 
assessment practice in NME cases. Pursuant to this refinement in 
practice, for entries that were not reported in the U.S. sales 
databases submitted by companies individually examined during this 
review, the Department will instruct CBP to liquidate such entries at 
the PRC-wide rate. In addition, if the Department determines that an 
exporter under review had no shipments of the subject merchandise, any 
suspended entries that entered under that exporter's case number (i.e., 
at that exporter's rate) will be liquidated at the PRC-wide rate.\22\
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    \22\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011).
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    In accordance with section 751(a)(2)(C) of the Act, the final 
results of this review shall be the basis for the assessment of 
antidumping duties on entries of merchandise covered by the final 
results of this review and for future deposits of estimated duties, 
where applicable.

Cash Deposit Requirements

    The following cash deposit requirements for estimated antidumping 
duties, when imposed, will apply to all shipments of subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the publication of the final results of this administrative 
review, as provided by section 751(a)(2)(C) of the Act: (1) If the 
companies preliminarily determined to be eligible for a separate rate 
receive a separate rate in the final results of this administrative 
review, their cash deposit rate will be equal to the weighted-average 
dumping margin established in the final results of this review, as 
adjusted for domestic subsidies (except, if that rate is de minimis, 
then the cash deposit rate will be zero); (2) for any previously 
investigated or reviewed PRC and non-PRC exporter that is not under 
review in this segment of the proceeding but that received a separate 
rate in the most recently completed segment of this proceeding, the 
cash deposit rate will continue to be the exporter-specific rate 
published for the most recently completed segment of this proceeding; 
(3) for all PRC exporters of subject merchandise that have not been 
found to be entitled to a separate rate, the cash deposit rate will be 
equal to the cash deposit rate for the PRC-wide entity, which will be 
equal to the rate assigned to the PRC-wide entity in the final results 
of this administrative review; and (4) for all non-PRC exporters of 
subject merchandise which have not received their own rate, the cash 
deposit rate will be the rate applicable to the PRC exporter(s) that 
supplied that non-PRC exporter. These cash deposit requirements, when 
imposed, shall remain in effect until further notice.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this

[[Page 61295]]

review period. Failure to comply with this requirement could result in 
the Department's presumption that reimbursement of antidumping duties 
occurred and the subsequent assessment of double antidumping duties.

Notification to Interested Parties

    We are issuing and publishing notice of these results in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: September 30, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Background
2. Scope of the Order
3. Affiliation and Collapsing
4. Preliminary Determination of No Shipments
5. Non-Market Economy Country
6. Separate Rates
7. Margin for the Separate Rate Companies
8. PRC-Wide Entity
9. Surrogate Country and Surrogate Value Data
10. Surrogate Country
11. Economic Comparability
12. Significant Producers of Identical or Comparable Merchandise
13. Data Availability
14. Date of Sale
15. Comparisons to Normal Value
16. Export Price and Constructed Export Price
17. Value-Added Tax
18. Normal Value
19. Factor Valuations
20. Adjustment Under Section 777A(f) of the Act
21. Currency Conversion

[FR Doc. 2014-24275 Filed 10-9-14; 8:45 am]
BILLING CODE 3510-DS-P

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