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Certain New Pneumatic Off-the-Road Tires From India and Sri Lanka: Amended Final Affirmative Countervailing Duty Determination for India and Countervailing Duty Orders

American Government Special Collections Reference Desk

American Government

Certain New Pneumatic Off-the-Road Tires From India and Sri Lanka: Amended Final Affirmative Countervailing Duty Determination for India and Countervailing Duty Orders

Ronald K. Lorentzen
Department of Commerce
6 March 2017


[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)]
[Notices]
[Pages 12556-12558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04433]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-870, C-542-801]


Certain New Pneumatic Off-the-Road Tires From India and Sri 
Lanka: Amended Final Affirmative Countervailing Duty Determination for 
India and Countervailing Duty Orders

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the Department) and the International Trade Commission (ITC), 
the Department is issuing countervailing duty orders on certain new 
pneumatic off-the-road tires (off road tires) from India and Sri Lanka. 
In addition, the Department is amending its final determination with 
respect to India, as a result of ministerial errors.

DATES: Effective March 6, 2017.

FOR FURTHER INFORMATION CONTACT: Gene Calvert (India); Whitley Herndon 
(Sri Lanka); AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3586 or (202) 482-6274, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with sections 705(d) and 777(i) of the Tariff Act of 
1930, as amended (the Act), and 19 CFR 351.210(c), on January 10, 2017, 
the Department published its final determinations in the countervailing 
duty investigations of off road tires from India and Sri Lanka.\1\ On 
February 23, 2017, the ITC notified the Department of its final 
determination that an industry in the United States is materially 
injured by reason of subsidized imports of subject merchandise from 
India and Sri Lanka within the meaning of section 705(b)(1)(A)(i) of 
the Act, and its determination that critical circumstances do not exist 
with respect to imports of subject merchandise from India and Sri Lanka 
that are subject to the Department's affirmative critical circumstances 
finding.\2\
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    \1\ See Countervailing Duty Investigation of Certain New 
Pneumatic Off-the-Road Tires from India: Final Affirmative 
Determination, and Final Affirmative Critical Circumstances 
Determination, in Part, 82 FR 2946 (January 10, 2017) (India Final 
Determination); and Certain New Pneumatic Off-the-Road Tires from 
Sri Lanka: Final Affirmative Countervailing Duty Determination, and 
Final Determination of Critical Circumstances, 82 FR 2949 (January 
10, 2017).
    \2\ See Letter to Ronald Lorentzen, Acting Assistant Secretary 
of Commerce for Enforcement and Compliance, from Rhonda K. 
Schmidtlein, Chairman of the U.S. International Trade Commission, 
regarding off the road tires from the India and Sri Lanka (February 
23, 2017). See also Certain New Pneumatic Off-the-Road Tires from 
India and Sri Lanka, Investigation Nos. 701-TA-552-553 and 731-TA-
1308 (Final), USITC Publication 4669 (February 2017).
---------------------------------------------------------------------------

Scope of the Orders

    The products covered by these orders are off road tires, which are 
tires with an off road tire size designation. For a complete 
description of the scope of the orders, see Appendix I.

Amendment to India Final Determination

    On January 17, 2017, ATC Tires Private Limited (ATC) alleged that 
the Department made ministerial errors in the India Final 
Determination.\3\ A ministerial error is defined as an error in 
addition, subtraction, or other arithmetic function, clerical error 
resulting from inaccurate copying, duplication, or the like, and any 
other similar type of unintentional error which the Secretary considers 
ministerial.\4\
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    \3\ See Letter from ATC, ``Certain New Pneumatic Off-the-Road 
Tires from India: Ministerial Error Comments on the Final 
Determination,'' dated January 17, 2017.
    \4\ See section 705(e) of the Act.
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    The Department reviewed the record and agrees that the errors 
referenced in ATC's allegation constitute ministerial errors within the 
meaning of 19 CFR 351.224(f).\5\ Specifically, the Department double-
counted the benefit ATC received through the Central Sales Tax 
Reimbursement Program and inadvertently treated a stamp duty exemption 
as a subsidy received during the POI when the record indicates it was 
received prior to the POI.\6\ Pursuant to 19 CFR 351.224(e), the 
Department is amending the India Final Determination to reflect the 
correction of the ministerial errors described above.

[[Page 12557]]

Based on our correction, ATC's subsidy rate decreased from 4.90 percent 
to 4.72 percent.\7\ Because the ``all-others'' rate is based, in part, 
on ATC's subsidy rate, the ``all-others'' rate decreased from 5.06 
percent to 4.94 percent.\8\
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    \5\ See Memorandum to Jim Maeder, Senior Director for 
Antidumping and Countervailing Duty Operations ``Countervailing Duty 
Investigation of Certain New Pneumatic Off-the-Road Tires from 
India: Ministerial Error Comments on the Final Determination'' 
(February 27, 2017).
    \6\ Id.
    \7\ Id.
    \8\ Id.
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Countervailing Duty Orders

    In accordance with sections 705(b)(1)(A)(i) and 705(d) of the Act, 
the ITC notified the Department of its final determinations that the 
industry in the United States producing off road tires is materially 
injured by reason of subsidized imports of off road tires from India 
and Sri Lanka and that critical circumstances do not exist with respect 
to imports of subject merchandise from India and Sri Lanka that are 
subject to the Department's affirmative critical circumstances 
findings. Therefore, in accordance with section 705(c)(2) of the Act, 
we are publishing these countervailing duty orders.
    As a result of the ITC's final determination, in accordance with 
section 706(a) of the Act, the Department will direct U.S. Customs and 
Border Protection (CBP) to assess, upon further instruction by the 
Department, countervailing duties on unliquidated entries of off road 
tires entered, or withdrawn from warehouse, for consumption on or after 
June 20, 2016, the date on which the Department published its 
preliminary countervailing duty determinations in the Federal 
Register,\9\ and before October 18, 2016, the date on which the 
Department instructed CBP to discontinue the suspension of liquidation 
on subject merchandise from India and Sri Lanka in accordance with 
section 703(d) of the Act. Section 703(d) of the Act states that the 
suspension of liquidation pursuant to a preliminary determination may 
not remain in effect for more than four months. Therefore, entries of 
off road tires from India and Sri Lanka made on or after October 18, 
2016, and prior to the date of publication of the ITC's final 
determination in the Federal Register are not liable for the assessment 
of countervailing duties due to the Department's discontinuation, 
effective October 18, 2016, for off road tires from India and Sri 
Lanka, of the suspension of liquidation.
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    \9\ See 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); and 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) 
(collectively, CVD Preliminary Determinations).
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Suspension of Liquidation

    In accordance with section 706 of the Act, the Department will 
direct CBP to reinstitute the suspension of liquidation of off road 
tires from India and Sri Lanka, effective the date of publication of 
the ITC's notice of final determination in the Federal Register, and to 
assess, upon further instruction by the Department pursuant to section 
706(a)(1) of the Act, countervailing duties for each entry of the 
subject merchandise in an amount based on the net countervailable 
subsidy rates for the subject merchandise. On or after the date of 
publication of the ITC's final injury determination in the Federal 
Register, CBP must require, at the same time as importers would 
normally deposit estimated duties on this merchandise, a cash deposit 
equal to the rates noted below:

------------------------------------------------------------------------
                                                           Subsidy rate
              Producer/exporter from India                   (percent)
------------------------------------------------------------------------
ATC Tires Private Limited...............................            4.72
Balkrishna Industries Limited...........................            5.36
All Others..............................................            4.94
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                           Subsidy rate
            Producer/exporter from Sri Lanka                 (percent)
------------------------------------------------------------------------
Camso Loadstar (Private), Ltd...........................            2.18
All Others..............................................            2.18
------------------------------------------------------------------------

Critical Circumstances

    With regard to the ITC's negative critical circumstances 
determination on imports of off road tires from India and Sri Lanka, we 
will instruct CBP to lift suspension and to refund any cash deposits 
made to secure the payment of estimated countervailing duties with 
respect to entries of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after March 22, 2016 (i.e., 90 
days prior to the date of the publication of the CVD Preliminary 
Determinations), but before June 20, 2016 (i.e., the date of 
publication of the CVD Preliminary Determinations).

Notifications to Interested Parties

    This notice constitutes the countervailing duty orders with respect 
to off road tires from India and Sri Lanka, pursuant to section 706(a) 
of the Act. Interested parties can find a list of antidumping duty 
orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    These orders are issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: March 2, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Attachment I

Scope of the Orders

    The scope of these orders 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 \10\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers 
or the replacement market.
---------------------------------------------------------------------------

    \10\ While tube-type tires are subject to the scope of these 
proceedings, tubes and flaps are not subject merchandise and 
therefore are not covered by the scope of these proceedings, 
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

[[Page 12558]]

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.
    In addition, 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, 
4011.70.0010, 4011.62.0000, 4011.80.1010, 4011.80.1020, 
4011.90.1050, 4011.70.0050, 4011.80.2010, 4011.80.8010, 
4011.80.2020, 4011.80.8020, 8431.49.9038, 8431.49.9090, 
8709.90.0020, and 8716.90.1020.\11\ Tires meeting the scope 
description may also enter under the following HTSUS subheadings: 
4011.90.2050, 4011.90.8050, 8424.90.9080, 8431.20.0000, 
8431.39.0010, 8431.49.1090, 8431.49.9030, 8432.90.0020, 
8432.90.0040, 8432.90.0050, 8432.90.0060, 8432.90.0081, 
8433.90.5010, 8503.00.9560, 8708.70.0500, 8708.70.2500, 
8708.70.4530, 8716.90.5035, 8716.90.5056 and 8716.90.5059.\12\ While 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the subject merchandise is dispositive.
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    \11\ Prior to January 1, 2017, subject merchandise was 
classifiable under the following HTSUS numbers which have been 
deleted or discontinued: 4011.61.0000, 4011.63.0000, 4011.69.0050, 
4011.92.0000, 4011.93.4000, 4011.93.8000, 4011.94.4000, and 
4011.94.8000.
    \12\ Prior to January 1, 2017, tires meeting the scope 
description may also enter under the following HTSUS subheadings 
which have been deleted or discontinued: 4011.99.4550, 4011.99.8550, 
8432.90.0005, 8432.90.0015, 8432.90.0030, 8432.90.0080, and 
8716.90.5055.

[FR Doc. 2017-04433 Filed 3-3-17; 8:45 am]
 BILLING CODE 3510-DS-P

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