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Certain New Pneumatic Off-the-Road Tires From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, in Part, and Alignment of Final Determination With Final Antidumping Determination

American Government Special Collections Reference Desk

American Government

Certain New Pneumatic Off-the-Road Tires From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, in Part, and Alignment of Final Determination With Final Antidumping Determination

Paul Piquado
Department of Commerce
20 June 2016


[Federal Register Volume 81, Number 118 (Monday, June 20, 2016)]
[Notices]
[Pages 39903-39905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14537]



[[Page 39903]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-870]


Certain New Pneumatic Off-the-Road Tires From India: Preliminary 
Affirmative Countervailing Duty Determination, Preliminary Affirmative 
Critical Circumstances Determination, in Part, and Alignment of Final 
Determination With Final Antidumping Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain new pneumatic off-the-road tires 
(off road tires) from India. The period of investigation is January 1, 
2015, through December 31, 2015. Interested parties are invited to 
comment on this preliminary determination.

DATES: Effective Date: June 20, 2016.

FOR FURTHER INFORMATION CONTACT: Spencer Toubia, AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-0123.

Alignment of Final Countervailing Duty (CVD) Determination With Final 
Antidumping Duty (AD) Determination

    On the same day the Department initiated this CVD investigation, 
the Department also initiated an AD investigation of off road tires 
from India and a CVD investigation of off road tires from Sri 
Lanka.1 2 This CVD, the India AD, and the Sri Lanka CVD 
investigations cover the same merchandise.
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    \1\ See Certain New Pneumatic Off-the-Road Tires From India, the 
People's Republic of China, and Sri Lanka: Initiation of 
Countervailing Duty Investigations, 81 FR 7067 (February 10, 2016) 
(Initiation Notice). See also Certain New Pneumatic Off-the-Road 
Tires From India and the People's Republic of China: Initiation of 
Less Than-Fair-Value Investigations, 81 FR 7073 (February 10, 2016).
    \2\ At this time, the Department also initiated AD and CVD 
investigations of off road tires from the People's Republic of China 
(PRC). However, on March 1, 2016, the U.S. International Trade 
Commission (ITC) found that imports of off road tires from the PRC 
were negligible and terminated the PRC AD and CVD investigations. 
See Certain New Pneumatic Off-the-Road-Tires From China, India, and 
Sri Lanka, 81 FR 10663 (March 1, 2016).
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    On May 11, 2016, in accordance with section 705(a)(1) of the Tariff 
Act of 1930, as amended (Act), Petitioners \3\ requested alignment of 
the final CVD determinations of off road tires from India and Sri Lanka 
with the final AD determination of off road tires from India. 
Therefore, in accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), we are aligning the final CVD determinations with the 
final India AD determination. Consequently, the final CVD 
determinations will be issued on the same date as the final India AD 
determination, which is currently scheduled to be issued no later than 
October 25, 2016.
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    \3\ Petitioners in this investigation are Titan Tire Corporation 
and the United Steel, Paper and Forestry, Rubber, Manufacturing, 
Energy, Allied Industrial and Service Workers International Union, 
AFL-CIO, CLC.
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Scope of the Investigation

    The scope of the investigation covers off road tires, which are 
tires with an off road tire size designation. For a complete 
description of the scope of the investigation, see Appendix I.

Scope Comments

    Certain interested parties commented on the scope of the 
investigation as it appeared in the Initiation Notice. For discussion 
of those comments, see the Preliminary Decision Memorandum.\4\
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    \4\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
regarding ``Certain New Pneumatic Off-the-Road Tires from India: 
Preliminary Affirmative Countervailing Duty Determination Decision 
Memorandum,'' dated concurrently with this notice (Preliminary 
Decision Memorandum).
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Methodology

    The Department is conducting this CVD investigation in accordance 
with section 701 of the Act. For each of the subsidy programs found 
countervailable, we preliminarily determine that there is a subsidy 
(i.e., a financial contribution by an ``authority'' that gives rise to 
a benefit to the recipient) and that the subsidy is specific.\5\ For a 
full description of the methodology underlying our preliminary 
conclusions, see the Preliminary Decision Memorandum.
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    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 
at http://enforcement.trade.gov/frn/. The signed Preliminary Decision 
Memorandum and the electronic version of the Preliminary Decision 
Memorandum are identical in content.

Preliminary Determination of Critical Circumstances, in Part

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to imports of off 
road tires from India for all other exporters or producers not 
individually examined. A discussion of our determination can be found 
in the Preliminary Decision Memorandum.

Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated a CVD rate for each individually-investigated producer/
exporter of the subject merchandise. We preliminarily determine that 
countervailable subsidies are being provided with respect to the 
manufacture, production, or exportation of the subject merchandise. In 
accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not individually examined, we apply an ``all-others'' rate, 
which is normally calculated by weighting the subsidy rates of the 
individual companies as respondents by those companies' exports of the 
subject merchandise to the United States. Under section 705(c)(5)(A)(i) 
of the Act, the all-others rate should exclude zero and de minimis 
rates or any rates based entirely on facts otherwise available pursuant 
to section 776 of the Act. Neither of the mandatory respondents' rates 
in this preliminary determination were zero or de minimis or based 
entirely on facts otherwise available. Accordingly, in this preliminary 
determination, we have calculated the ``all-others'' rate by weight 
averaging the calculated subsidy rates of the two individually 
investigated respondents. In order to ensure that business proprietary 
information is not disclosed through the all-others rate, we have used 
the respondent's publicly-ranged sales data for exports of subject 
merchandise to the United States.\6\
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    \6\ See Preliminary Decision Memorandum at ``CALCULATION OF THE 
ALL-OTHERS RATE'' (for further explanation of the business 
propretiary information concerns); see also Memorandum to the File, 
``Countervailing Duty Investigation of Certain New Pneumatic Off-
the-Road Tires from India: Preliminary Determination Margin 
Calculation for All-Others,'' dated concurrently with this 
memorandum.

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[[Page 39904]]

    We preliminarily determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
ATC Tires Private Limited...................................        7.64
Balkrishna Industries Limited \7\...........................        4.70
All-Others..................................................        6.17
------------------------------------------------------------------------

    In accordance with sections 703(d)(1)(B) and (2) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of off road tires from India that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date of the publication of this notice in the Federal Register, and to 
require a cash deposit for such entries of merchandise in the amounts 
indicated above. Moreover, because we preliminarily find critical 
circumstances exist with respect to all other exporters or producers 
not individually examined, in accordance with section 703(e)(2)(A) of 
the Act, we are directing CBP to apply the suspension of liquidation to 
any unliquidated entries entered, or withdrawn from warehouse for 
consumption by these companies, on or after the date which is 90 days 
prior to the date of publication of this notice in the Federal 
Register.
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    \7\ The Department selected as its mandatory respondents in this 
investigation ATC Tires Private Limited and Balkrishna Industries 
Limited. See Department Memorandum, ``Countervailing Duty 
Investigation of Certain New Pneumatic Off-the-Road Tires from 
India: Respondent Selection,'' dated February 24, 2016 (Respondent 
Selection Memorandum). On April 8, 2016, TVS Srichakra Ltd. (TVS) 
submitted voluntary responses to our Initial Questionnaire. See 
Letter from TVS, ``Countervailing Duty Investigation on Imports of 
Certain New Pneumatic Off-the-Road Tires from India -Questionnaire 
Response,'' dated April 8, 2016. On May 4, 2016, we determined that 
we did not have the resources to select to select TVS as a voluntary 
respondent because to do so would be unduly burdensome and would 
inhibit the timely completion of this investigation. Therefore, we 
have not analyzed any voluntary responses. See Department 
Memorandum, ``Countervailing Duty Investigation of Certain New 
Pneumatic Off-the- Road Tires from India: Selection of an Additional 
Respondent,'' dated May 4, 2016.
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Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

U.S. International Trade Commission

    In accordance with section 703(f) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information relating to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order, without the written consent 
of the Assistant Secretary for Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.

Disclosure and Public Comment

    The Department intends to disclose calculations performed for this 
preliminary determination to the parties within five days of the date 
of public announcement of this determination in accordance with 19 CFR 
351.224(b). Case briefs or other written comments may be submitted to 
the Assistant Secretary for Enforcement and Compliance no later than 
seven days after the date on which the final verification report is 
issued in this proceeding, and rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than five days after 
the deadline date for case briefs.\8\ A table of contents, list of 
authorities used, and an executive summary of issues should accompany 
any briefs submitted to the Department, pursuant to 19 CFR 
351.309(c)(2) and (d)(2). This summary should be limited to five pages 
total, including footnotes.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce, 
filed electronically using ACCESS. An electronically-filed request must 
be received successfully, and in its entirety, by ACCESS by 5:00 p.m. 
Eastern Time, within 30 days after the date of publication of this 
notice. Requests should contain the party's name, address, and 
telephone number; the number of participants; and a list of the issues 
to be discussed. If a request for a hearing is made, the Department 
intends to hold the hearing at the U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230, at a date, 
time, and specific location to be determined. Parties will be notified 
of the date, time, and location of any hearing. Parties should confirm 
by telephone the date, time, and location of the hearing two days 
before the scheduled date.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: June 13, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation is certain new pneumatic off-
the-road tires (certain off road tires). Certain off road tires are 
tires with an off road tire size designation. The tires included in 
the scope may be either tube-type \9\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers 
or the replacement market.
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    \9\ While tube-type tires are subject to the scope of this 
proceeding, tubes and flaps are not subject merchandise and 
therefore are not covered by the scope of this proceeding, 
regardless of the manner in which they are sold (e.g., sold with or 
separately from subject merchandise).
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    Subject tires may have the following prefix or suffix 
designation, which appears on the sidewall of the tire:
    Prefix designations:

DH--Identifies a tire intended for agricultural and logging service 
which must be mounted on a DH drop center rim.
VA--Identifies a tire intended for agricultural and logging service 
which must be mounted on a VA multipiece rim.
IF--Identifies an agricultural tire to operate at 20 percent higher 
rated load than standard metric tires at the same inflation 
pressure.
VF--Identifies an agricultural tire to operate at 40 percent higher 
rated load than standard metric tires at the same inflation 
pressure.

    Suffix designations:

ML--Mining and logging tires used in intermittent highway service.
DT--Tires primarily designed for sand and paver service.
NHS--Not for Highway Service.
TG--Tractor Grader, off-the-road tire for use on rims having bead 
seats with nominal +0.188'' diameter (not for highway service).
K--Compactor tire for use on 5[deg] drop center or semi-drop center 
rims having bead seats with nominal minus 0.032 diameter.
IND--Drive wheel tractor tire used in industrial service.
SL--Service limited to agricultural usage.
FI--Implement tire for agricultural towed highway service.
CFO--Cyclic Field Operation.
SS--Differentiates tires for off-highway vehicles such as mini and 
skid-steer loaders from other tires which use similar size 
designations such as 7.00-15TR and 7.00-15NHS, but may use different 
rim bead seat configurations.

    All tires marked with any of the prefixes or suffixes listed 
above in their sidewall markings are covered by the scope regardless 
of their intended use.

[[Page 39905]]

    In addition, all tires that lack any of the prefixes or suffixes 
listed above in their sidewall 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 
following sections of the Tire and Rim Association Year Book, as 
updated annually, unless the tire falls within one of the specific 
exclusions set forth below. The sections of the Tire and Rim 
Association Year Book listing numerical size designations of covered 
certain off road tires include:
    The table of mining and logging tires included in the section on 
Truck-Bus tires;
    The entire section on Off-the-Road tires;
    The entire section on Agricultural tires; and
    The following tables in the section on Industrial/ATV/Special 
Trailer tires:
     Industrial, Mining, Counterbalanced Lift Truck (Smooth 
Floors Only);
     Industrial and Mining (Other than Smooth Floors);
     Construction Equipment;
     Off-the-Road and Counterbalanced Lift Truck (Smooth 
Floors Only);
     Aerial Lift and Mobile Crane; and
     Utility Vehicle and Lawn and Garden Tractor.
    Certain off road 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 certain off road tires produced 
in the subject countries whether mounted on wheels or rims in a 
subject country or in a third country. Certain off road tires are 
covered whether or not they are accompanied by other parts, e.g., a 
wheel, rim, axle parts, bolts, nuts, etc. Certain off road tires 
that enter attached to a vehicle are not covered by the scope.
    Specifically excluded from the scope are passenger vehicle and 
light truck tires, racing tires, mobile home tires, motorcycle 
tires, all-terrain vehicle tires, bicycle tires, on-road or on-
highway trailer tires, and truck and bus tires. Such tires generally 
have in common that the symbol ``DOT'' must appear on the sidewall, 
certifying that the tire conforms to applicable motor vehicle safety 
standards. Such excluded tires may also have the following prefixes 
and suffixes included as part of the size designation on their 
sidewalls:
    Prefix letter designations:

AT--Identifies a tire intended for service on All-Terrain Vehicles;
P--Identifies a tire intended primarily for service on passenger 
cars;
LT--Identifies a tire intended primarily for service on light 
trucks;
T--Identifies a tire intended for one-position ``temporary use'' as 
a spare only; and
ST--Identifies a special tire for trailers in highway service.

    Suffix letter designations:

TR--Identifies a tire for service on trucks, buses, and other 
vehicles with rims having specified rim diameter of nominal plus 
0.156'' or plus 0.250'';
MH--Identifies tires for Mobile Homes;
HC--Identifies a heavy duty tire designated for use on ``HC'' 15'' 
tapered rims used on trucks, buses, and other vehicles. This suffix 
is intended to differentiate among tires for light trucks, and other 
vehicles or other services, which use a similar designation.

    Example: 8R17.5 LT, 8R17.5 HC;

LT--Identifies light truck tires for service on trucks, buses, 
trailers, and multipurpose passenger vehicles used in nominal 
highway service;
ST--Special tires for trailers in highway service; and
M/C--Identifies tires and rims for motorcycles.

    The following types of tires are also excluded from the scope: 
Pneumatic tires that are not new, including recycled or retreaded 
tires and used tires; non-pneumatic tires, including solid rubber 
tires; aircraft tires; and turf, lawn and garden, and golf tires. 
Also excluded from the scope are mining and construction tires that 
have a rim diameter equal to or exceeding 39 inches. Such tires may 
be distinguished from other tires of similar size by the number of 
plies that the construction and mining tires contain (minimum of 16) 
and the weight of such tires (minimum 1500 pounds).
    The subject merchandise is currently classifiable under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 
4011.20.1025, 4011.20.1035, 4011.20.5030, 4011.20.5050, 
4011.61.0000, 4011.62.0000, 4011.63.0000, 4011.69.0050, 
4011.92.0000, 4011.93.4000, 4011.93.8000, 4011.94.4000, 
4011.94.8000, 8431.49.9038, 8431.49.9090, 8709.90.0020, and 
8716.90.1020. Tires meeting the scope description may also enter 
under the following HTSUS subheadings: 4011.99.4550, 4011.99.8550, 
8424.90.9080, 8431.20.0000, 8431.39.0010, 8431.49.1090, 
8431.49.9030, 8432.90.0005, 8432.90.0015, 8432.90.0030, 
8432.90.0080, 8433.90.5010, 8503.00.9560, 8708.70.0500, 
8708.70.2500, 8708.70.4530, 8716.90.5035 and 8716.90.5055. While 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the subject merchandise is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Critical Circumstances
VI. Injury Test
VII. Subsidies Valuation
VIII. Loan Benchmark and Interest Rates
IX. Analysis of Programs
X. Calculation of All-Others Rate
XI. ITC Notification
XII. Disclosure and Public Comment
XIII. Conclusion

[FR Doc. 2016-14537 Filed 6-17-16; 8:45 am]
BILLING CODE 3510-DS-P

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