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

American Government Special Collections Reference Desk

American Government

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

Paul Piquado
Department of Commerce
10 January 2017


[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Notices]
[Pages 2946-2949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00264]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-870]


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

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain new pneumatic off-the-road tires (off road tires) from 
India. For information on the estimated subsidy rates, see the ``Final 
Determination'' section of this notice. The period of investigation is 
January 1, 2015, through December 31, 2015.

DATES: Effective January 10, 2017.

FOR FURTHER INFORMATION CONTACT: Spencer Toubia or Gene Calvert, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone (202) 482-0123 or (202) 482-3586, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the Preliminary Determination on June 20, 
2016.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Issues and Decision Memorandum.\2\ The Issues and 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 Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum 
and the electronic version are identical in content.
---------------------------------------------------------------------------

    \1\ 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 81 FR 39903 (June 20, 2016) (Preliminary 
Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain New Pneumatic Off-the-Road Tires from India,'' (Issues and 
Decision Memorandum), dated concurrently with this determination and 
hereby adopted by this notice.
---------------------------------------------------------------------------

Scope Comments

    In accordance with the Preliminary Determination, the Department 
set aside a period of time for parties to address scope issues in case 
briefs or other written comments on scope issues.\3\ In the Preliminary 
Determination, we did not modify the scope language as it appeared in 
the Initiation Notice.\4\ No interested party submitted scope comments 
in case or rebuttal briefs. Therefore, the scope of this

[[Page 2947]]

investigation remains unchanged for this final determination.\5\
---------------------------------------------------------------------------

    \3\ See Preliminary Determination at 81 FR 39903, and 
accompanying Preliminary Decision Memorandum at ``Scope Comments.''
    \4\ Id.
    \5\ The Department has added two additional subheadings from the 
Harmonized Tariff Schedule of the United States to the list included 
for convenience and customs purposes since the Preliminary 
Determination. No revisions were made to the written description of 
the subject merchandise.
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are certain new 
pneumatic off-the-road tires from India. For a complete description of 
the scope of this investigation, see the ``Scope of the 
Investigation,'' in Appendix I of this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix II.

Use of Adverse Facts Available

    The Department, in making these findings, relied, in part, on facts 
available and, because one or more respondent companies failed to 
cooperate to the best of their ability in responding to the 
Department's requests for information, we made adverse inferences.\6\ 
Further, because the Government of India did not cooperate to the best 
of its ability in this investigation, we also determine that adverse 
inferences are warranted, pursuant to section 776(b) of the Act. A full 
discussion of our decision to rely on adverse facts available is 
presented in the ``Use of Facts Otherwise Available and Adverse 
Inferences'' section of the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \6\ See sections 776(a) and (b) of the Tariff Act of 1930, as 
amended (the Act).
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations set forth 
in the Preliminary Determination. For a discussion of these changes, 
see the Issues and Decision Memorandum and the Final Analysis 
Memoranda.\7\
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    \7\ See Issues and Decision Memorandum; see also Memoranda, 
``Final Determination Analysis for ATC Tires Private Limited.,'' and 
``Final Determination Analysis for Balkrishna Industries Limited,'' 
both dated concurrently with this determination and hereby adopted 
by this notice.
---------------------------------------------------------------------------

Final Affirmative Determination of Critical Circumstances, in Part

    In the Preliminary Determination, the Department found that 
critical circumstances exist with respect to off road tires from India 
for All Other exporters or producers not individually examined, but did 
not exist for ATC Tires Private Limited (ATC) and Balkrishna Industries 
Limited (BKT).\8\ Upon further analysis of the data and comments 
submitted by interested parties following the Preliminary 
Determination, we are modifying our findings for the Final 
Determination.\9\ Specifically, in accordance with section 705(a)(2) of 
the Act, we find that critical circumstances exist with respect to 
imports from ATC, and All Other producers or exporters, but do not 
exist for BKT.
---------------------------------------------------------------------------

    \8\ See Preliminary Determination, 81 FR at 39903.
    \9\ For a full description of the methodology and results of our 
analysis, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
determined a countervailable subsidy rate for each individually 
investigated exporter/producer of the subject merchandise (i.e., ATC 
and BKT). Section 705(c)(5)(A)(i) of the Act states that for companies 
not individually investigated, we will determine an ``all-others'' rate 
equal to the weighted average of the countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding any de minimis countervailable subsidy rates and rates 
determined entirely by adverse facts available, under section 776 of 
the Act. Accordingly, in this final determination, we have calculated 
the ``all-others'' rate by weight-averaging the calculated subsidy 
rates of the two individually investigated respondents, using the 
respondents' publicly-ranged sales data for exports of subject 
merchandise to the United States.\10\
---------------------------------------------------------------------------

    \10\ See Memorandum, ``Countervailing Duty Investigation of 
Certain New Pneumatic Off-the-Road Tires from India: Final 
Determination Margin Calculation for All-Others,'' dated 
concurrently with this memorandum.
---------------------------------------------------------------------------

    We determine the estimated net countervailable subsidy rates are as 
follows.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
------------------------------------------------------------------------
ATC Tires Private Limited...............................            4.90
Balkrishna Industries Limited...........................            5.36
All-Others..............................................            5.06
------------------------------------------------------------------------

Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension Liquidation

    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of entries of merchandise under 
consideration from India that were entered or withdrawn from warehouse, 
for consumption, on or after June 20, 2016, which is the publication 
date in the Federal Register of the Preliminary Determination. In 
accordance with section 703(d) of the Act, we issued instructions to 
CBP to discontinue the suspension of liquidation for CVD purposes for 
subject merchandise entered, or withdrawn from warehouse, on or after 
October 17, 2016, but to continue the suspension of liquidation of all 
entries of subject merchandise from March 22, 2016, through October 16, 
2016.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited as a result of the suspension of liquidation will be refunded 
or canceled.

ITC Notification

    In accordance with section 705(d) 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 related 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 (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this

[[Page 2948]]

notice serves as the only reminder to parties subject to APO of their 
responsibility concerning the return or destruction of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation that is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: January 3, 2017.
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 \11\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers 
or the replacement market.
---------------------------------------------------------------------------

    \11\ 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, 8716.90.5055, 8716.90.5056 
and 8716.90.5059. 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidies Valuation Information
VI. Benchmarks and Interest Rates
VII. Use of Facts Otherwise Available and Adverse Inferences

[[Page 2949]]

VIII. Analysis of Programs
IX. Analysis of Comments
    Comment 1: Whether Tax and Import Duty Exemptions Under the 
Special Economic Zone (SEZ) and Export-Oriented Unit (EOU) Programs 
are Countervailable
    Comment 2: Whether the Department Must Eliminate Certain Duties 
Regarding ATC's Tamil Nadu SEZ Location in the Final Determination
    Comment 3: Whether the Advance Authorization Scheme (AAP) Is a 
Countervailable Program
    Comment 4: Whether the Department Should Apply Adverse Facts 
Available (AFA) to Determine if the Government of Gujarat's (GOG) 
Provision of Land to BKT from the ``Land Bank'' was Specific
    Comment 5: Whether the Department May Use Land Purchased by BKT 
from Private Parties as Benchmarks and Whether They Show the GOG, 
through the ``Land Bank'' Did Not Provide Land to BKT at LTAR
    Comment 6: Whether ATC Benefited from the Provision of Land for 
LTAR for its SEZ/EOU Locations and Whether the Provision of Land to 
ATC is Contingent upon Export Performance
    Comment 7: Whether the Department Should Revise the Benchmark 
for the Provision of Land Provided to ATC for its SEZ/EOU Locations
    Comment 8: Whether the Department Should Revise the Discount 
Rate Used to Allocate ATC's Land-Use Rights Benefits for its SEZ/EOU 
Locations
    Comment 9: Whether the Income Tax Deductions for Research and 
Development Expenditures Is a Specific Subsidy
    Comment 10: Whether the Department Should Use a Six-Month 
Comparison Period for Its Final Critical Circumstances Determination
    Comment 11: Whether the Department Should Correct Calculation 
Errors regarding ATC's Preliminary Determination Calculations
    Comment 12: Whether the Department Should Apply AFA because of 
Information Obtained at Verification
    Comment 13: Whether the Department Should Subtract BKT's Sales 
of its Paper Division from its Total Sales and Total Export Sales 
Denominators
    Comment 14: Whether the Department Should Subtract Sales from 
BKT's Wind Divisions from its Total Sales and Total Export Sales 
Denominators
    Comment 15: Whether the Department Should Use Total Sales 
Instead of Export Sales as the Denominator when Calculating the Rate 
for the Export Promotion of Capital Goods Scheme (EPCGS).
X. Recommendation

[FR Doc. 2017-00264 Filed 1-9-17; 8:45 am]
 BILLING CODE 3510-DS-P

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