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Countervailing Duty Order on Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2014-2015

American Government Special Collections Reference Desk

American Government Cars in China

Countervailing Duty Order on Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2014-2015

Gary Taverman
Department of Commerce
16 March 2018


[Federal Register Volume 83, Number 52 (Friday, March 16, 2018)]
[Notices]
[Pages 11694-11696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05377]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-017]


Countervailing Duty Order on Certain Passenger Vehicle and Light 
Truck Tires From the People's Republic of China: Final Results of 
Countervailing Duty Administrative Review; 2014-2015

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

SUMMARY: The Department of Commerce (Commerce) determines that the 
mandatory respondents GITI Tire Global Trading Pte. Ltd./GITI Tire 
(USA) Ltd./GITI Radial Tire (Anhui) Company Ltd. (GITI Anhui Radial)/
GITI Tire (Fujian) Company Ltd (GITI Fujian)/GITI Tire (Hualin) Company 
Ltd. (GITI Hualin) (collectively, GITI) and Cooper (Kunshan) Tire Co., 
Ltd. (Cooper), exporters of passenger vehicle and light truck tires 
from the People's Republic of China (China) received countervailable 
subsidies during the period of review (POR) December 1, 2014, through 
December 31, 2015. We also find that Zhongce Rubber Group Company 
Limited (Zhongce) received countervailable subsidies during the POR, 
based on adverse facts available.

DATES: Applicable March 16, 2018.

FOR FURTHER INFORMATION CONTACT: Andrew Huston, 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) 482-4261.

Background

    Commerce published the Preliminary Results of this administrative 
review in the Federal Register on September 7, 2017.\1\ On September 
22, 2017, United Steel, Paper and Forestry, Rubber, Manufacturing, 
Energy, Allied Industrial and Service Workers International Union, AFL-
CIO, CLC (the petitioner) submitted comments regarding alleged 
deficiencies in the record. In response to the petitioner's deficiency 
comments letter, on September 28, 2017, Commerce issued supplemental 
questionnaires to GITI and Cooper. GITI and Cooper submitted timely 
responses to the September 28, 2017, supplemental questionnaires on 
October 13, 2017.
---------------------------------------------------------------------------

    \1\ See Certain Passenger Vehicle and Light Truck Tires from the 
People's Republic of China: Preliminary Results of Countervailing 
Duty Administrative Review and Rescission, in Part; 2014-2015, 82 FR 
42287 (September 7, 2017) (Preliminary Results).
---------------------------------------------------------------------------

    We invited interested parties to comment on the Preliminary 
Results. On November 22, 2017, we received case briefs from the 
following interested parties: Cooper; GITI; the petitioner; and the 
Government of China (GOC). On December 4, 2017, the Commerce received 
timely rebuttal comments from GITI, and on December 5, 2017, we 
received timely rebuttal comments from Cooper, the petitioner and the 
GOC. On December 13, 2017, Commerce rejected the case brief submitted 
by GITI because we determined the brief contained untimely new factual 
information. GITI timely resubmitted its case brief on December 15, 
2017.
    On December 8, 2017, in accordance with section 751(a)(3)(A) of the 
Act, Commerce extended the period for issuing the final results of this 
review by 60 days, to March 6, 2018.\2\ Commerce exercised its 
discretion to toll all deadlines affected by the closure of the Federal 
Government from January 20 through 22, 2018. If the new deadline falls 
on a non-business day, in accordance with Commerce's practice, the 
deadline will become the next business day. The revised deadline for 
the final results of this review is now March 9, 2018.\3\
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    \2\ See Commerce Memorandum, ``Administrative Review of the 
Countervailing Duty Order on Passenger Vehicle and Light Truck Tires 
from the People's Republic of China: Extension of Deadline for Final 
Results,'' (December 8, 2017).
    \3\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
---------------------------------------------------------------------------

Scope of the Order

    The products covered by the order are certain passenger vehicle and 
light truck tires from China. A full description of the scope of the 
order is contained in the Issues and Decision Memorandum.\4\
---------------------------------------------------------------------------

    \4\ See ``Decision Memorandum for the Final Results of the 
Administrative Review of the Countervailing Duty Order on Certain 
Passenger Vehicle and Light Truck Tires from the People's Republic 
of China; 2014-2015,'' dated concurrently with this notice (Issues 
and Decision Memorandum) and hereby adopted by this notice.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in interested parties' briefs are addressed in 
the Issues and Decision Memorandum accompanying this notice. A list of 
the issues raised by interested parties and to which we responded in 
the Issues and Decision Memorandum is provided in Appendix I to this 
notice. 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 https://access.trade.gov and 
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 access directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on case briefs, rebuttal briefs, and all supporting 
documentation, we made changes from the Preliminary Results. Commerce 
has adjusted the AFA rate applied to Zhongce, modified its attribution 
of subsidies received by various Cooper affiliates to Cooper, adjusted 
the denominators for both respondents, adjusted the synthetic rubber 
and butadiene benchmarks for GITI, adjusted the inland freight rates 
used to construct the benchmark for carbon black for both respondents, 
and corrected various ministerial errors for both respondents.

[[Page 11695]]

Methodology

    Commerce conducted this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found to be countervailable, we find that there 
is a subsidy, i.e., a financial contribution from a government or 
public entity that gives rise to a benefit to the recipient, and that 
the subsidy is specific.\5\ For a full description of the methodology 
underlying all of Commerce's conclusions, including any determination 
that relied upon the use of adverse facts available pursuant to 
sections 776(a) and (b) of the Act, see the Issues and Decision 
Memorandum.
---------------------------------------------------------------------------

    \5\ 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.
---------------------------------------------------------------------------

Final Results of Administrative Review

    In accordance with 19 CFR 351.221(b)(5), we calculated a 
countervailable subsidy rate for the mandatory respondents, Cooper and 
GITI, and a rate based on facts available for Zhongce. For the non-
selected companies subject to this review,\6\ we followed Commerce's 
practice, which is to base the subsidy rates on an average of the 
subsidy rates calculated for those companies selected for individual 
review, excluding de minimis rates or rates based entirely on adverse 
facts available.\7\ In this case, for the non-selected companies, we 
have calculated a rate by weight-averaging the calculated subsidy rates 
of Cooper and GITI using their publicly-ranged sales data for exports 
of subject merchandise to the United States during the POR. We find the 
countervailable subsidy rates for the producers/exporters under review 
to be as follows:
---------------------------------------------------------------------------

    \6\ See Appendix II.
    \7\ See, e.g., Certain Pasta from Italy: Preliminary Results of 
the 13th (2008) Countervailing Duty Administrative Review, 75 FR 
18806, 18811 (April 13, 2010), unchanged in Certain Pasta from 
Italy: Final Results of the 13th (2008) Countervailing Duty 
Administrative Review, 75 FR 37386 (June 29, 2010).

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
GITI Tire Global Trading Pte. Ltd./GITI Tire (USA) Ltd./           20.68
 GITI Radial Tire (Anhui) Company Ltd. (GITI Anhui
 Radial)/GITI Tire (Fujian) Company Ltd (GITI Fujian)/
 GITI Tire (Hualin) Company Ltd. (GITI Hualin)
 (collectively, GITI)...................................
Cooper (Kunshan) Tire Co., Ltd. (Cooper)................           16.16
Zhongce Rubber Group Company Limited....................          119.46
Non-Selected Companies Under Review.....................           19.13
------------------------------------------------------------------------

Disclosure

    We will disclose to the parties in this proceeding the calculations 
performed for these final results within five days of the date of 
publication of this notice in the Federal Register.\8\
---------------------------------------------------------------------------

    \8\ See 19 CFR 351.224(b).
---------------------------------------------------------------------------

Assessment Rates

    Consistent with 19 CFR 351.212(b)(2), we intend to issue assessment 
instructions to U.S. Customs and Border Protection (CBP) 15 days after 
the date of publication of these final results of review, to liquidate 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption, on or after December 1, 2014, through December 31, 
2015, at the ad valorem rates listed above.

Cash Deposit Instructions

    In accordance with section 751(a)(1) of the Act, we intend to 
instruct CBP to collect cash deposits of estimated countervailing 
duties in the amounts shown for each of the respective companies listed 
above. These cash deposit requirements, when imposed, shall remain in 
effect until further notice.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective order (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 or 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 sanctionable 
violation.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: March 9, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

Summary
Background
List of Comments From Interested Parties
Scope of the Order
Changes Since the Preliminary Results
Non-Selected Companies Under Review
Subsidies Valuation Information
    Allocation Period
    Attribution of Subsidies
    Denominators
    Benchmarks and Discount Rates
Use of Facts Otherwise Available and Adverse Inferences
Programs Determined To Be Countervailable
Programs Determined Not To Be Used or Not To Confer Measurable 
Benefits During the POR
Analysis of Comments
    Comment 1: Zhongce's AFA Rate
    Comment 2: Cooper's 2014 Subsidies and Sales
    Comment 3: Cooper's Resellers
    Comment 4: GITI Companies' Sales Denominator
    Comment 5. Inland Freight Rate for Carbon Black Benchmark
    Comment 6: Provision of Inputs for LTAR
    Comment 7: Grade Specific Benchmarks
    Comment 8: Income Tax Programs
    Comment 9: Grant Programs
    Comment 10: Rate for Non-Selected Companies
    Comment 11: RMB Denominated Loans for GITI Chongqing
    Comment 12: Reporting Errors in GITI's Loan Template
    Comment 13: Cooper's Former Cross-Owned Affiliated Producer
    Comment 14: Alleged Error in Cooper's Margin Calculation
    Comment 15: CKT Acquired Land Benefit
    Comment 16: Commerce's Selection of Pricing Benchmarks
    Comment 17: Nylon Cord Benchmarks for GITI
    Comment 18: Ocean Freight and Import Duties Added to Tier 1 or 
Tier 2 Benchmarks
    Comment 19: Export Buyers Credit
    Comment 20: Other Subsidies
Recommendation
Appendix--Non-Selected Companies Under Review

Appendix II

Non-Selected Companies Under Review

1. American Pacific Industries, Inc.
2. BC Tyre Group Limited
3. Crown International Corporation
4. Fleming Limited
5. Guangrao Taihua International Trade Co.,

[[Page 11696]]

Ltd.
6. Haohua Orient International Trade Ltd.
7. Hong Kong Tiancheng Investment & Trading Co., Limited
8. Jilin Jixing Tire Co., Ltd.
9. Kenda Rubber (China) Co., Ltd.
10. Liaoning Permanent Tyre Co., Ltd.
11. Macho Tire Corporation Limited
12. Maxon Int'l Co., Limited
13. Qingdao Crown Chemical Co., Ltd.
14. Qingdao Goalstar Tire Co., Ltd.
15. Qingdao Keter International Co., Limited
16. Qingdao Lakesea Tyre Co., Ltd.
17. Qingdao Nama Industrial Co., Ltd.
18. Qingdao Odyking Tyre Co., Ltd.
19. Qingdao Sentury Tire Co., Ltd.
20. Qingzhou Detai International Trading Co., Ltd.
21. Riversun Industry Limited
22. Safe&Well (HK) International Trading Limited
23. Shandong Anchi Tyres Co., Ltd.
24. Shandong Changhong Rubber Technology Co., Ltd.
25. Shandong Guofeng Rubber Plastics Co., Ltd.
26. Shandong Haohua Tire Co., Ltd.
27. Shandong Hawk International Rubber Industry Co., Ltd.
28. Shandong Hengyu Science & Technology Co., Ltd.
29. Shandong Linglong Tyre Co., Ltd.
30. Shandong Longyue Rubber Co., Ltd.
31. Shandong New Continent Tire Co., Ltd.
32. Shandong Province Sanli Tire Manufactured Co., Ltd.
33. Shandong Yongtai Group Co., Ltd. (formerly known as Shandong 
Yongtai Chemical Co., Ltd.)
34. Shandong Zhongyi Rubber Co., Ltd.
35. Shangong Shuangwang Rubber Co., Ltd.
36. Shengtai Group Co., Ltd.
37. Shouguang Firemax Tyre Co., Ltd.
38. Southeast Mariner International Co., Ltd.
39. Tyrechamp Group Co., Limited
40. Windforce Tyre Co., Limited
41. Zhaoqing Junhong Co., Ltd.

[FR Doc. 2018-05377 Filed 3-15-18; 8:45 am]
 BILLING CODE 3510-DS-P

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