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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; 2013-2014

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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; 2013-2014

Ronald K. Lorentzen
Department of Commerce
October 9, 2015


[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)]
[Notices]
[Pages 61166-61170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25804]


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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; 2013-2014

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


[[Page 61167]]


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, 
2013, through August 31, 2014. The review covers twelve exporters of 
subject merchandise.\1\ The Department preliminarily finds that two 
mandatory respondents, Qingdao Qihang Tyre Co., Ltd. (``Qihang'') and 
Xuzhou Xugong Tyres Co., Ltd. (``Xugong'') \2\, made sales of subject 
merchandise at less than normal value (``NV'') and an additional four 
companies, Qingdao Free Trade Zone Full-World International Trading 
Co., Ltd. (``Full-World''), Trelleborg Wheel Systems (Xingtai) China, 
Co. Ltd. (``TWS Xingtai'') and Weihai Zhongwei Rubber Co., Ltd. 
(``Zhongwei''), and Tianjin Leviathan International Trade Co., Ltd. 
(``Leviathan''), demonstrated eligibility for separate rates status. 
Further, the Department preliminarily determines that two firms listed 
in the Initiation Notice had no shipments during the POR and one 
company failed to demonstrate eligibility for separate rate status. 
Finally, the remaining three firms timely withdrew their requests for 
review, and the Department previously rescinded the review for these 
companies.\3\ Interested parties are invited to comment on these 
preliminary results.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Review, 79 FR 64565 (October 30, 2014) (``Initiation 
Notice'').
    \2\ As discussed below, we collapsed Xugong with Xuzhou Armour 
Rubber Company Ltd. (``Armour'') and Xuzhou Hanbang Tyre Co., Ltd. 
(``Hanbang'') as a single entity for the purposes of this review and 
refer to the collapsed entity as ``Xugong'', collectively, for the 
purposes of these preliminary results.
    \3\ See Certain New Pneumatic Off-the-Road Tires from the 
People's Republic of China: Partial Rescission of Antidumping Duty 
Administrative Review; 2013-2014, 80 FR 9695 (February 24, 2015) 
(``Notice of Partial Rescission'').

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DATES: Effective Date: October 9, 2015.

FOR FURTHER INFORMATION CONTACT: Andrew Medley or Mandy Mallott, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4987 or (202) 482-6430, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On October 30, 2014, the Department initiated the sixth 
administrative review of the antidumping duty order on OTR tires from 
the PRC.\4\ On April 23, 2015, we extended the time limit for the 
preliminary results of review by 120 days, pursuant to section 
751(a)(3)(A) of the Tariff Act of 1930, as amended (``Act''), to 
September 30, 2015.\5\ For a complete description of the events that 
followed the initiation of this administrative review, see the 
Preliminary Decision Memorandum.\6\
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    \4\ See Initiation Notice.
    \5\ See Memorandum to Christian Marsh entitled, ``Certain New 
Pneumatic Off-the-Road Tires from the People's Republic of China: 
Extension of Deadline for Preliminary Results of 2013-2014 
Antidumping Duty Administrative Review,'' dated April 23, 2015.
    \6\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting 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; 2013-2014'' 
(``Preliminary Decision Memorandum''), dated concurrently with and 
hereby adopted by this notice.
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Scope of the Order \7\
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    \7\ For a complete description of the scope of the order, see 
the 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

    On November 20, 2014, Trelleborg Wheel Systems Hebei Co. (``TWS 
Hebei'') submitted a timely-filed certification indicating that it had 
no shipments of subject merchandise to the United States during the 
POR.\8\ Also, on December 26, 2014, Zhongce Rubber Group Company 
Limited (``Zhongce'') submitted a timely-filed certification indicating 
that it had no shipments of subject merchandise to the United States 
during the POR.\9\ Consistent with our practice, the Department asked 
Customs and Border Protection (``CBP'') to conduct a query on potential 
shipments made by TWS Hebei and Zhongce during the POR.\10\ Based on 
TWS Hebei and Zhongce's certifications and our analysis of CBP data and 
rebuttal information, we preliminarily determine that TWS Hebei and 
Zhongce did not have any reviewable transactions during the POR. For 
additional information regarding this determination, see the 
Preliminary Decision Memorandum. Consistent with our assessment 
practice in non-market economy (``NME'') cases, the Department is not 
rescinding this review for these companies, but intends to complete the 
review and issue appropriate instructions to CBP based on the final 
results of the review.\11\
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    \8\ See Letter from TWS Hebei, entitled, ``Trelleborg Wheel 
Systems Hebei Co. Statement of No Shipments during the POR: New 
Pneumatic Off-The-Road Tires from the People's Republic of China,'' 
dated November 20, 2014.
    \9\ See Letter from Zhongce entitled, ``New Pneumatic Off-the 
Road Tires from the People's Republic of China (2013-2014): Zhongce 
Rubber Group Company Limited No Shipment Letter,'' dated December 
26, 2014.
    \10\ See CBP Message Number 5141301, dated May 21, 2015.
    \11\ 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 record evidence for these preliminary results, we find 
that Xugong, Armour, and Hanbang are affiliated, pursuant to sections 
771(33)(E) of the Act. Additionally, based on the evidence presented in 
the questionnaire responses and pursuant to 19 CFR 351.401(f)(1)-(2), 
we preliminarily find that these companies should be considered a 
single entity for purposes of this review.\12\
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    \12\ For further discussion of the Department's affiliation and 
collapsing decision, see the Preliminary Decision Memorandum and 
Memorandum to Erin Begnal, Director, Office III, entitled, ``2013-
2014 Administrative Review of the Antidumping Duty Order on Certain 
New Pneumatic Off-the-Road Tires from the People's Republic of 
China: Preliminary Affiliation and Collapsing Memorandum for Xuzhou 
Xugong Tyres Co., Ltd.,'' dated concurrently with this notice.
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Separate Rates

    The Department preliminarily determines that information placed on 
the record by the mandatory respondents Xugong and Qihang, as well as 
by the four other separate rate applicants, Full-World, TWS Xingtai, 
Zhongwei, and Leviathan, demonstrates that these companies are entitled 
to separate rate status. For additional information, see the 
Preliminary Decision Memorandum.

Rate for Non-Examined Companies Which Are Eligible for a Separate Rate

    The statute and the Department's regulations do not address the

[[Page 61168]]

establishment of a rate to be applied to respondents not selected for 
individual examination when the Department limits its examination of 
companies subject to the administrative review pursuant to section 
777A(c)(2)(B) of the Act. Generally, the Department looks to section 
735(c)(5) of the Act, which provides instructions for calculating the 
all-others rate in an investigation, for guidance when calculating the 
rate for respondents not individually examined in an administrative 
review. Section 735(c)(5)(A) of the Act articulates a preference for 
not calculating an all-others rate using rates which are zero, de 
minimis or based entirely on facts available (``FA''). Accordingly, the 
Department's usual practice has been to determine the dumping margin 
for companies not individually examined by averaging the weighted-
average dumping margins for the individually examined respondents, 
excluding rates that are zero, de minimis, or based entirely on facts 
available.\13\ Consistent with this practice, in this review, we 
preliminarily calculated weighted-average dumping margins for Qihang 
and Xugong that are above de minimis and not based entirely on FA; 
therefore, the Department preliminarily assigns to Leviathan, Full-
World, TWS Xingtai, and Zhongwei the average of the weighted-average 
margins calculated for Qihang and Xugong as the separate rate for this 
review.\14\
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    \13\ See Ball Bearings and Parts Thereof From France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews and Rescission of Reviews in Part, 73 FR 
52823, 52824 (September 11, 2008), and accompanying Issues and 
Decision Memorandum at Comment 16.
    \14\ See Memorandum to the File entitled ``2013-2014 
Administrative Review of the Antidumping Duty Order on Certain New 
Pneumatic Off-the-Road Tires from the People's Republic of China: 
Preliminary Results Margin Calculation for Separate Rate 
Companies,'' dated concurrently with this notice.
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PRC-Wide Entity

    The Department's change in policy regarding conditional review of 
the PRC-wide entity applies to this administrative review.\15\ Under 
this policy, the PRC-wide entity will not be under review unless a 
party specifically requests, or the Department self-initiates, a review 
of the entity. Because no party requested a review of the PRC-wide 
entity in this review, the entity is not under review and the entity's 
rate (i.e., 105.31 percent) is not subject to change.\16\ Aside from 
the no shipments and separate rate companies discussed above and the 
companies for which the review was previously rescinded (except where 
previously determined to be a part of the PRC-wide entity, in the case 
of Double Coin Holdings), the Department considers all other companies 
for which a review was requested (i.e., Qingdao Haojia (Xinhai) Tyre 
Co.), which did not file a separate rate application) to be part of the 
PRC-wide entity. For additional information, see the Preliminary 
Decision Memorandum.
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    \15\ See Antidumping Proceedings: Announcement of Change in 
Department Practice for Respondent Selection in Antidumping Duty 
Proceedings and Conditional Review of the Nonmarket Economy Entity 
in NME Antidumping Duty Proceedings, 78 FR 65963 (November 4, 2013).
    \16\ See Certain New Pneumatic Off-the-Road Tires From the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review; 2012-2013, 80 FR 20197 (April 15, 2015); see 
also Certain New Pneumatic Off-the-Road Tires From the People's 
Republic of China: Amended Final Results of Antidumping Duty 
Administrative Review; 2012-2013, 80 FR 26230 (May 7, 2015).
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Application of Facts Available and Use of Adverse Inference

    Section 776(a) of the Act provides that the Department shall apply 
facts available if (1) necessary information is not on the record, or 
(2) an interested party or any other person (A) withholds information 
that has been requested, (B) fails to provide information within the 
deadlines established, or in the form and manner requested by the 
Department, subject to subsections (c)(1) and (e) of section 782 of the 
Act, (C) significantly impedes a proceeding, or (D) provides 
information that cannot be verified as provided by section 782(i) of 
the Act.
    Section 776(b) of the Act further provides that the Department may 
use an adverse inference in applying facts available when a party has 
failed to cooperate by not acting to the best of its ability to comply 
with a request for information. Such an adverse inference may include 
reliance on information derived from the petition, the final 
determination, a previous administrative review, or other information 
placed on the record.
    Based on findings at verification, pursuant to sections 776(a) and 
(b) of the Act, we are applying partial adverse facts available to a 
portion of Xugong's U.S. sales. For details regarding this 
determinations, see the Preliminary Decision Memorandum.\17\
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    \17\ See Memorandum from the Department entitled, ``2013-2014 
Administrative Review of the Antiduping Duty Order on Certain New 
Pneumatic Off-the-Road Tires from the People's Rpublic of China: 
Verification of the Sales and Factors Response of Xuzhou Xugong 
Tyres Co., Ltd. And Affiliates,'' dated concurrently with this 
notice and Memorandum from the Department entitled, ``2013-2014 
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 Xuzhou 
Xugong Tyres Co., Ltd.,'' dated concurrently with this notice.
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Methodology

    The Department is conducting this review in accordance with section 
751(a)(1)(B) and 751(a)(2)(A) 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 nonmarket economy within the meaning of 
section 771(18) of the Act, NV has been calculated in accordance with 
section 773(c).
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. 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 (``ACCESS''). ACCESS is available 
to registered users at http://access.trade.gov, and is available to all 
parties in the Central Records Unit, Room B8024 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/. 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 for the period September 1, 
2013, through August 31, 2014:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                          Exporter                             dumping
                                                                margin
                                                              (percent)
------------------------------------------------------------------------
Xuzhou Xugong Tyres Co., Ltd., Armour Rubber Company Ltd.,         86.78
 or Xuzhou Hanbang Tyre Co., Ltd...........................
Qingdao Qihang Tyre Co., Ltd...............................        99.36
Qingdao Free Trade Zone Full-World International Trading           91.30
 Co., Ltd..................................................
Tianjin Leviathan International Trade Co., Ltd.............        91.30
Trelleborg Wheel Systems (Xingtai) China, Co. Ltd..........        91.30
Weihai Zhongwei Rubber Co., Ltd............................        91.30
------------------------------------------------------------------------


[[Page 61169]]

Disclosure, Public Comment and Opportunity To Request a Hearing

    The Department intends to disclose the calculations used in our 
analysis to parties in this review 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 within 30 days after the 
date of publication of these preliminary results of review in the 
Federal Register.\18\ Rebuttals to case briefs, which must be limited 
to issues raised in the case briefs, must be filed within five days 
after the time limit for filing case briefs.\19\ Parties who submit 
arguments are requested to submit with the argument (a) a statement of 
the issue, (b) a brief summary of the argument, and (c) a table of 
authorities.\20\ Parties submitting briefs should do so pursuant to the 
Department's electronic filing system, ACCESS.\21\
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    \18\ See 19 CFR 351.309(c)(1)(ii).
    \19\ See 19 CFR 351.309(d)(1)-(2).
    \20\ See 19 CFR 351.309(c)(2), (d)(2).
    \21\ See 19 CFR 351.303 (for general filing requirements).
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    Any interested party may request a hearing within 30 days of 
publication of this notice.\22\ 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 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, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.\23\
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    \22\ See 19 CFR 351.310(c).
    \23\ See 19 CFR 351.310(d).
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    The Department intends to issue the final results of this 
administrative review, which will include the results of our analysis 
of all issues raised in the case briefs, within 120 days of publication 
of these preliminary results in the Federal Register, pursuant to 
section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by this review.\24\ The Department intends to issue assessment 
instructions to CBP 15 days after the publication date of the final 
results of this review.
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    \24\ See 19 CFR 351.212(b).
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    For assessment purposes, 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.\25\ For any individually 
examined respondent whose weighted average dumping margin is above de 
minimis (i.e., 0.50 percent) in the final results of this review, the 
Department will calculate importer-specific assessment rates on the 
basis of the ratio of the total amount of dumping calculated for the 
importer's examined sales to the total entered value of sales, in 
accordance with 19 CFR 351.212(b)(1). Where an importer- (or customer-) 
specific ad valorem rate is greater than de minimis, the Department 
will instruct CBP to collect the appropriate duties at the time of 
liquidation.\26\ Where either a respondent's weighted average dumping 
margin is zero or de minimis, or an importer- (or customer-) specific 
ad valorem rate is zero or de minimis, the Department will instruct CBP 
to liquidate appropriate entries without regard to antidumping 
duties.\27\ For the respondents that were not selected for individual 
examination in this administrative review and that qualified for a 
separate rate, the assessment rate will be based on the average of the 
mandatory respondents.\28\
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    \25\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101 (February 14, 2012) in 
the manner described in more detail in the Preliminary Decision 
Memorandum.
    \26\ See 19 CFR 351.212(b)(1).
    \27\ See 19 CFR 351.106(c)(2).
    \28\ See Preliminary Decision Memorandum.
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    Pursuant to the Department's practice, for entries that were not 
reported in the U.S. sales databases submitted by companies 
individually examined during the administrative review, the Department 
will instruct CBP to liquidate such entries at the PRC-wide rate. 
Additionally, if the Department determines that an exporter 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.\29\
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    \29\ For a full discussion of this practice, see Non-Market 
Economy Antidumping Proceedings: Assessment of Antidumping Duties, 
76 FR 65694 (October 24, 2011).
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Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this review for shipments of the 
subject merchandise from the PRC entered, or withdrawn from warehouse, 
for consumption on or after the publication date, as provided by 
sections 751(a)(2)(C) of the Act: (1) For the companies listed above 
that have a separate rate, the cash deposit rate will be that 
established in the final results of this review (except, if the rate is 
zero or de minimis, then zero cash deposit will be required); (2) for 
previously investigated or reviewed PRC and non-PRC exporters not 
listed above that received a separate rate in a prior segment of this 
proceeding, the cash deposit rate will continue to be the existing 
exporter-specific rate; (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 that for the PRC-wide entity; 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 that supplied that non-PRC exporter. These 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 and/or countervailing duties 
prior to liquidation of the relevant entries during the POR. Failure to 
comply with this requirement could result in the Department's 
presumption that reimbursement of antidumping and/or countervailing 
duties occurred and the subsequent assessment of double antidumping 
duties.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).

    Dated: September 30, 2015.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

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

I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Review and Preliminary Determination of No 
Shipments
V. Respondent Selection and Determination Not To Select TWS Xingtai 
as a Voluntary Respondent
VI. Affiliation and Collapsing
VII. Discussion of Methodology
    A. Non-Market Economy Country
    B. Separate Rates
    C. Margin for the Companies Individually Examined
    D. Margin for the Separate Rate Companies Not Individually 
Examined

[[Page 61170]]

    E. Margin for Companies Not Receiving a Separate Rate
    F. PRC-Wide Entity
    G. Application of Facts Available and Use of Adverse Inferences
    H. Surrogate Country and Surrogate Value Data
    I. Surrogate Country
    J. Economic Comparability
    K. Significant Producers of Identical or Comparable Merchandise
    L. Data Availability
    M. Date of Sale
    N. Comparisons to Normal Value
    O. Export Price and Constructed Export Price
    P. Value-Added Tax
    Q. Normal Value
    R. Factor Evaluations
    S. Adjustment Under Section 777A(f) of the Act
VIII. Currency Conversion
IX. Recommendation

[FR Doc. 2015-25804 Filed 10-8-15; 8:45 am]
BILLING CODE 3510-DS-P



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