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Certain New Pneumatic Off-the-Road Tires From Sri Lanka: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, 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 Sri Lanka: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, 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 39900-39902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14538]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-542-801]


Certain New Pneumatic Off-the-Road Tires From Sri Lanka: 
Preliminary Affirmative Countervailing Duty Determination, Preliminary 
Affirmative Critical Circumstances Determination, 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 Sri Lanka and that critical circumstances exist. 
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: Elizabeth Eastwood, 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) 482-3874.

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

    On February 3, 2016, the Department initiated this CVD 
investigation of off road tires from Sri Lanka.\1\ On the same day, the 
Department also initiated antidumping duty (AD) and CVD investigations 
of off road tires from India.2 3 This CVD investigation and 
the India AD investigation cover the same class or kind of 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).
    \2\ See 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).
    \3\ 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 \4\ requested alignment of 
the final CVD determination of off road tires from 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 determination with the India final AD 
determination. Consequently, the final CVD determination will be issued 
on the same date as the India final AD determination, which is 
currently scheduled to be issued no later than October 25, 2016, unless 
postponed.
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    \4\ 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.\5\
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    \5\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
regarding ``Decision Memorandum for the Affirmative Preliminary 
Determination in the Countervailing Duty Investigation of Certain 
New Pneumatic Off-The-Road Tires from Sri Lanka,'' 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.\6\ For a 
full description of the methodology underlying our preliminary 
conclusions, see the Preliminary Decision Memorandum.
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    \6\ 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

[[Page 39901]]

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 Affirmative Determination of Critical Circumstances

    On May 24, 2016, Petitioners filed a timely critical circumstances 
allegation, pursuant to section 703(e)(1) of the Act and 19 CFR 
351.206(c)(1), alleging that critical circumstances exist with respect 
to imports of off road tires from Sri Lanka.\7\ We preliminarily 
determine that critical circumstances exist for Camso Loadstar 
(Private) Ltd. (Camso Loadstar) and the companies covered by the ``all 
others'' rate. For discussion of our determination, see the Preliminary 
Decision Memorandum.
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    \7\ See Letter from Petitioners, regarding Certain New Pneumatic 
Off-The-Road Tires from Sri Lanka--Petitioners' Critical 
Circumstances Allegation, dated May 24, 2016.
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated a CVD rate for the individually-investigated producer/
exporter of the subject merchandise. In accordance with sections 703(d) 
and 705(c)(5)(A) of the Act, for companies not investigated, we apply 
an ``all others'' rate, which is normally calculated by weighting the 
subsidy rates of the individually-examined 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 solely on 
the facts available calculated for the producers/exporters individually 
investigated. Because we individually investigated only one producer/
exporter, we applied the rate calculated for that producer/exporter as 
the ``all others'' rate.
    We preliminarily determine that countervailable subsidies are being 
provided with respect to the manufacture, production, or exportation of 
the subject merchandise. We preliminarily determine the countervailable 
subsidy rates to be:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Camso Loadstar (Private), Ltd.\8\...........................        2.90
All Others..................................................        2.90
------------------------------------------------------------------------

    As noted above, we preliminarily determine that critical 
circumstances exist for Camso Loadstar and the companies covered by the 
``all others'' rate. Therefore, in accordance with sections 
703(d)(1)(B) and 703(e)(2) of the Act, we are directing U.S. Customs 
and Border Protection to suspend liquidation of all entries of off road 
tires from Sri Lanka that are entered, or withdrawn from warehouse, for 
consumption on or after the date which is 90 days before 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.
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    \8\ The Department selected as its mandatory respondents in this 
investigation Camso Loadstar and Loadstar Private Limited 
(Loadstar). See the Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, from 
Whitley Herndon, International Trade Compliance Analyst, entitled 
``Respondent Selection for the Countervailing Duty Investigation of 
Certain New Pneumatic Off-The-Road Tires from Sri Lanka,'' dated 
February 25, 2016. However, on April 1, 2016, Camso Loadstar 
notified the Department that Camso Loadstar and Loadstar are not 
separate companies; rather, Loadstar is the previous name for Camso 
Loadstar. Specifically, Camso Loadstar stated that, on June 24, 
2015, Loadstar changed its name to Camso Loadstar. See Letter from 
Camso Loadstar, entitled ``Certain Off-the-Road Tires from Sri 
Lanka,'' dated April 1, 2016. As a result, we are assigning a cash 
deposit rate to Camso Loadstar because this is the name of the 
currently existing company. For further discussion, see the 
Preliminary Decision Memorandum.
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Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by Camso Loadstar and the Government of Sri 
Lanka (GOSL) 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 to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\9\ Case 
briefs may be submitted to ACCESS no later than seven days after the 
date on which the final verification report is issued in this 
proceeding. Rebuttal briefs, limited to issues raised in case briefs, 
may be submitted no later than five days after the deadline date for 
case briefs.\10\
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    \9\ See 19 CFR 351.224(b).
    \10\ See 19 CFR 351.309.
---------------------------------------------------------------------------

    Parties who submit case briefs or rebuttal briefs in this 
proceeding are encouraged to submit with each argument: (1) A statement 
of the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\11\ This summary should be limited to five pages total, 
including footnotes.
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------

    Interested parties who wish to request a hearing, or to participate 
if one is requested, must do so in writing within 30 days after the 
publication of this preliminary determination in the Federal 
Register.\12\ 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 location to be determined. Parties will be notified of the 
date, time, and location of any hearing.
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.310(c).
---------------------------------------------------------------------------

    Parties must file their case and rebuttal briefs, and any requests 
for a hearing, electronically using ACCESS.\13\ Electronically-filed 
documents must be received successfully in their entirety by 5:00 p.m. 
Eastern Time on the due dates established above.\14\
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    \13\ See 19 CFR 351.303(b)(2)(i).
    \14\ See 19 CFR 351.303(b)(1).
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    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).


[[Page 39902]]


    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 \15\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers 
or the replacement market.
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    \15\ 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).
---------------------------------------------------------------------------

    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.
    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. Analysis of Programs
IX. ITC Notification
X. Verification
XI. Conclusion

[FR Doc. 2016-14538 Filed 6-17-16; 8:45 am]
 BILLING CODE 3510-DS-P



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