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Certain New Pneumatic Off-the-Road Tires From Sri Lanka: Final Affirmative Countervailing Duty Determination, and Final Determination of Critical Circumstances

American Government Special Collections Reference Desk

American Government

Certain New Pneumatic Off-the-Road Tires From Sri Lanka: Final Affirmative Countervailing Duty Determination, and Final Determination of Critical Circumstances

Paul Piquado
Department of Commerce
10 January 2017


[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Notices]
[Pages 2949-2951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00266]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-542-801]


Certain New Pneumatic Off-the-Road Tires From Sri Lanka: Final 
Affirmative Countervailing Duty Determination, and Final Determination 
of Critical Circumstances

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 Sri 
Lanka. The period of investigation (POI) is January 1, 2015, through 
December 31, 2015. For information on the estimated subsidy rates, see 
the ``Final Determination'' section of this notice.

DATES: Effective January 10, 2017.

FOR FURTHER INFORMATION CONTACT: E. Whitley Herndon, Office II, 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-
6274.

SUPPLEMENTARY INFORMATION:

Background

    The 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. In addition to the Government of Sri Lanka, the mandatory 
respondent in this investigation is Camso Loadstar (Private) Ltd. 
(Camso Loadstar).
    The events that occurred since the Department published the 
Preliminary Determination \1\ on June 20, 2016, are discussed in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\ The Issues and Decision Memorandum also details the changes 
we made since the Preliminary Determination to the subsidy rates 
calculated for the mandatory respondent and all other producers/
exporters. 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/index.html. The signed Issues and 
Decision Memorandum and the electronic version of the Issues and 
Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See 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, 81 FR 39900 (June 20, 2016) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, entitled, ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Certain 
New Pneumatic Off-The-Road Tires from Sri Lanka,'' dated 
concurrently with this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

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.

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 as Appendix II.

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 Camso Loadstar's subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memorandum and the Final Analysis Memorandum.\3\
---------------------------------------------------------------------------

    \3\ See Memorandum ``Final Determination Calculation Memorandum 
for Camso Loadstar (Private) Ltd. and Loadstar (Private) Ltd. 
(collectively Camso Loadstar),'' dated concurrently with this notice 
(Final Analysis Memorandum).
---------------------------------------------------------------------------

Final Affirmative Determination of Critical Circumstances

    On May 24, 2016, the petitioners filed a timely critical 
circumstances allegation, pursuant to section 703(e)(1) of the Tariff 
Act of 1930, as amended (the Act) and 19 CFR 351.206(c)(1),

[[Page 2950]]

alleging that critical circumstances exist with respect to imports of 
off road tires from Sri Lanka.\4\ We preliminarily determined that 
critical circumstances exist for Camso Loadstar and the companies 
covered by the ``all others'' rate. For this final determination, in 
accordance with section 705(a) of the Act, we continue to find that 
critical circumstances exist for Camso Loadstar and the companies 
covered by the ``all others'' rate. For a discussion, see the 
``Critical Circumstances'' section and ``Comment 7'' of the Issues and 
Decision Memorandum.
---------------------------------------------------------------------------

    \4\ See Letter from Petitioners, regarding Certain New Pneumatic 
Off-The-Road Tires from Sri Lanka--Petitioners' Critical 
Circumstances Allegation, dated May 24, 2016.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated a rate for Camso Loadstar (the only individually 
investigated exporter/producer of subject merchandise). 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 countervailable subsidy rates established for 
exporters and producers individually investigated, excluding any zero 
and de minimis countervailable subsidy rates, and any rates determined 
entirely under section 776 of the Act. Where the rates for investigated 
companies are zero or de minimis, or based entirely on facts otherwise 
available, section 705(c)(5)(A)(ii) of the Act instructs the Department 
to establish an ``all others'' rate using ``any reasonable method.''
    Because the only individually calculated rate is not zero, de 
minimis, or based entirely on facts otherwise available, in accordance 
with 705(c)(5)(A)(i) of the Act, the rate calculated for Camso Loadstar 
is assigned as the all-others rate. We determine the total estimated 
net countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Camso Loadstar (Private), Ltd...........................            2.18
All Others..............................................            2.18
------------------------------------------------------------------------

Suspension of Liquidation

    As a result of our affirmative Preliminary Determination and our 
affirmative critical circumstances determination, pursuant to sections 
703(d) and 703(e)(2)(A) of the Act, we instructed U.S. Customs and 
Border Protection (CBP) to suspend liquidation of entries of subject 
merchandise from Sri Lanka which were entered or withdrawn from 
warehouse, for consumption on or after March 22, 2016, which is 90 days 
before the date of the publication of the Preliminary Determination in 
the Federal Register.\5\
---------------------------------------------------------------------------

    \5\ See Preliminary Determination.
---------------------------------------------------------------------------

    In accordance with section 703(d) of the Act, we later 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 18, 2016, but to continue the suspension 
of liquidation of all entries from March 22, 2016, through October 17, 
2016, as appropriate.
    We will issue a CVD order and reinstate the suspension of 
liquidation in accordance with our final determination and under 
section 706(a) of the Act if the United States International Trade 
Commission (ITC) issues a final affirmative injury determination, and 
we will instruct CBP to require a cash deposit of estimated 
countervailing duties for such entries of 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.

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.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the 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 which is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    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 \6\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers 
or the replacement market.
---------------------------------------------------------------------------

    \6\ 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,

[[Page 2951]]

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 Issues and Decision Memorandum

I. Summary
II. Background
III. List of Issues
IV. Subsidies Valuation Information
V. Critical Circumstances
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether Camso Loadstar Benefited from Exemptions/
Concessions for Fiscal Levies on Imports of Spare Parts
    Comment 2: Whether the Provision of Tax Concession for Exporters 
of Non-Traditional Products Program is Countervailable
    Comment 3: Whether the Nation Building Tax Preferences Program 
is Specific and Constitutes a Financial Contribution
    Comment 4: Whether Camso Loadstar Benefited from the Guaranteed 
Price Scheme for Rubber
    Comment 5: Whether to Use U.S. Dollar Amounts Recorded by Camso 
Loadstar to Determine Subsidy Rates
    Comment 6: Whether to Use Camso Loadstar's Revised FOB Sales 
Data for Denominator
    Comment 7: Whether the Department Should Continue to Find 
Critical Circumstances
    Comment 8: Whether to Terminate the Investigation
VIII. Recommendation

[FR Doc. 2017-00266 Filed 1-9-17; 8:45 am]
BILLING CODE 3510-DS-P

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