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Truck and Bus Tires From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, in Part, and Alignment of Final Determination With Final Antidumping Determination

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American Government Cars in China Trucking Buses

Truck and Bus Tires From the People's Republic of China: 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
5 July 2016


[Federal Register Volume 81, Number 128 (Tuesday, July 5, 2016)]
[Notices]
[Pages 43577-43579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15837]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-041]


Truck and Bus Tires From the People's Republic of China: 
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 truck and bus tires from the People's 
Republic of China (PRC). 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: July 5, 2016.

FOR FURTHER INFORMATION CONTACT: Jennifer Shore or Mark Kennedy, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-2778 or (202) 482-7883, 
respectively.

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 truck and bus 
tires from the PRC.\1\ This CVD investigation and the companion AD 
investigation cover the same merchandise.
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    \1\ See Truck and Bus Tires from the People's Republic of China: 
Initiation of Countervailing Duty Investigation, 81 FR 9428 
(February 25, 2016) (Initiation Notice). See also Truck and Bus 
Tires from the People's Republic of China: Initiation of Antidumping 
Duty Investigation, 81 FR 9434 (February 25, 2016).
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    On June 15, 2016, in accordance with section 705(a)(1) of the 
Tariff Act of 1930, as amended (Act), the petitioner \2\ requested 
alignment of the final CVD determination of truck and bus tires from 
the PRC with the final AD determination of truck and bus tires tires 
from the PRC. Therefore, in accordance with section 705(a)(1) of the

[[Page 43578]]

Act and 19 CFR 351.210(b)(4), we are aligning the final CVD 
determination with the final PRC AD determination. Consequently, the 
final CVD determination will be issued on the same date as the PRC AD 
determination, which is currently scheduled to be issued no later than 
November 9, 2016.
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    \2\ The petitioner in this investigation is the United Steel, 
Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial 
and Service Workers International Union, AFL-CIO, CLC (the ``USW'').
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Scope of the Investigation

    The product covered by this investigation is truck and bus tires 
from the PRC. For a full 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.\3\
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    \3\ 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 Preliminary Affirmative 
Determination: Countervailing Duty Investigation of Truck and Bus 
Tires from the People's Republic of China; and the Preliminary 
Affirmative Determination of Critical Circummstances, in Part'' 
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.\4\ For a 
full description of the methodology underlying our preliminary 
conclusions, see the Preliminary Decision Memorandum.
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    \4\ 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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    In making this preliminary determination, the Department relied, in 
part, on facts otherwise available, with the application of adverse 
inferences.\5\ For further information, see ``Use of Facts Otherwise 
Available and Application of Adverse Inferences'' in the accompanying 
Preliminary Decision Memorandum.
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    \5\ See section 776(a) of the Act.
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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 truck 
and bus tires from the PRC for mandatory respondent Guizhou Tyre Co., 
Ltd. (GTC) and its cross-owned trading company, Guizhou Tyre Import and 
Export Co., Ltd. (GTCIE). 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. In order to ensure that business 
proprietary information is not disclosed, we have calculated the all-
others rate as a simple average of the countervailable subsidy rates 
found for the two mandatory repsondents.\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).
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    We preliminarily determine the countervailable subsidy rates to be:

 
------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Double Coin Holdings Ltd.; Double Coin Group (Jiangsu)             17.06
 Tyre Co., Ltd.; Double Coin Group (Chongqing) Tyre Co.,
 Ltd.; Double Coin Group Shanghai Donghai Tyre Co. Ltd.;
 Double Coin Group (Xinjiang) Kunlun Tyre Co., Ltd......
Guizhou Tyre Import and Export Co., Ltd.; Guizhou Tyre             23.38
 Co., Ltd...............................................
All-Others..............................................           20.22
------------------------------------------------------------------------

    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 truck and bus tires from the PRC 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. Section 703(e)(2) of the Act provides that, given an 
affirmative determination of critical circumstances, any suspension of 
liquidation shall apply to unliquidated entries of merchandise entered, 
or withdrawn from warehouse, for consumption on or after the later of: 
(a) The date which is 90 days before the date on which the suspension 
of liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published. We preliminarily found 
that critical circumstances exist for GTC and GTCIE. Therefore, 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 form warehouse for consumption by GTC and GTCIE, 
on or after the date that is 90

[[Page 43579]]

days prioir to the publication of this notice in the Federal Register.

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.\7\ 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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    \7\ 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, 1401 
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 27, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of the investigation covers truck and bus tires. Truck 
and bus tires are new pneumatic tires, of rubber, with a truck or 
bus size designation. Truck and bus tires covered by this 
investigation may be tube-type, tubeless, radial, or non-radial.
    Subject tires have, at the time of importation, the symbol 
``DOT'' on the sidewall, certifying that the tire conforms to 
applicable motor vehicle safety standards. Subject tires may also 
have one of the following suffixes in their tire size designation, 
which also appear on the sidewall of the tire:
    TR--Identifies tires for service on trucks or buses to 
differentiate them from similarly sized passenger car and light 
truck tires;
    MH--Identifies tires for mobile homes; and
    HC--Identifies a 17.5 inch rim diameter code for use on low 
platform trailers.
    All tires with a ``TR,'' ``MH,'' or ``HC'' suffix in their size 
designations are covered by this investigation regardless of their 
intended use.
    In addition, all tires that lack one of the above suffix 
markings are included in the scope, regardless of their intended 
use, as long as the tire is of a size that is among the numerical 
size designations listed in the ``Truck-Bus'' section of the Tire 
and Rim Association Year Book, as updated annually, unless the tire 
falls within one of the specific exclusions set out below.
    Truck and bus tires, whether or not mounted on wheels or rims, 
are included in the scope. However, if a subject tire is imported 
mounted on a wheel or rim, only the tire is covered by the scope. 
Subject merchandise includes truck and bus tires produced in the 
subject country whether mounted on wheels or rims in the subject 
country or in a third country. Truck and bus tires are covered 
whether or not they are accompanied by other parts, e.g., a wheel, 
rim, axle parts, bolts, nuts, etc. Truck and bus tires that enter 
attached to a vehicle are not covered by the scope.
    Specifically excluded from the scope of this investigation are 
the following types of tires: (1) Pneumatic tires, of rubber, that 
are not new, including recycled and retreaded tires; and (2) non-
pneumatic tires, such as solid rubber tires.
    The subject merchandise is currently classifiable under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 
4011.20.1015 and 4011.20.5020. Tires meeting the scope description 
may also enter under the following HTSUS subheadings: 4011.99.4520, 
4011.99.4590, 4011.99.8520, 4011.99.8590, 8708.70.4530, 
8708.70.6030, and 8708.70.6060. While HTSUS subheadings are provided 
for convenience and for 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. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VIII. Application of the Countervailing Duty Law to Imports From the 
PRC
IX. Subsidies Valuation
X. Interest Rate Benchmarks, Discount Rates, Input and Land 
Benchmarks
XI. Analysis of Programs
XII. Calculation of All-Others Rate
XIII. ITC Notification
XIV. Disclosure and Public Comment
XV. Verification
XVI. Conclusion

[FR Doc. 2016-15837 Filed 7-1-16; 8:45 am]
 BILLING CODE 3510-DS-P

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