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Truck and Bus Tires From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, Rescission of Review in Part, and Intent To Rescind in Part; 2021 Publication: Federal Register Department: Department of Commerce Byline: Abdelali Elouaradia Date: 3 March 2023 Subjects: American Government  , Tires
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[Federal Register Volume 88, Number 42 (Friday, March 3, 2023)]
[Notices]
[Pages 13423-13425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04436]
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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 Results of Countervailing Duty Administrative Review,
Rescission of Review in Part, and Intent To Rescind in Part; 2021
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that certain exporters/producers of truck and bus tires from
the People's Republic of China (China) received countervailable
subsidies during the period of review (POR) from January 1, 2021,
through December 31, 2021. In addition, we are rescinding the review
with respect to 12 companies and announcing our preliminary intent to
rescind this review with respect to three other companies. Interested
parties are invited to comment on these preliminary results.
DATES: Applicable March 3, 2023.
FOR FURTHER INFORMATION CONTACT: Theodore Pearson, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230; telephone: (202) 482-2631.
Background
On February 15, 2019, Commerce published in the Federal Register
the countervailing duty (CVD) order on truck and bus tires from
China.\1\ On April 12, 2022, Commerce published the notice of
initiation of an administrative review of the Order for the period
January 1, 2021, through December 31, 2021.\2\ On May 19, 2022,
Commerce selected Qingdao Ge Rui Da Rubber Co., Ltd as the sole
mandatory respondent in this administrative review.\3\ On October 14,
2022, Commerce exercised its discretion to extend the preliminary
results of this administrative review by 120 days, until February 28,
2022.\4\
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\1\ See Truck and Bus Tires from the People's Republic of China:
Amended Final Determination and Countervailing Duty Order, 84 FR
4434 (February 15, 2019) (Order).
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 87 FR 21619 (April 12, 2022).
\3\ See Memorandum, ``Respondent Selection,'' dated May 19,
2022.
\4\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review; 2021,'' dated
October 14, 2022.
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For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\5\
A list of topics discussed in the Preliminary Decision Memorandum is
included as the appendix to this notice. 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. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of Countervailing Duty Administrative Review, Recission in
Part, and Preliminary Intent to Rescind in Part; 2021: Truck and Bus
Tires from the People's Republic of China,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Order
The products covered by the Order are truck and bus tires. For a
complete description of the scope, see the Preliminary Decision
Memorandum.\6\
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\6\ See Preliminary Decision Memorandum.
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[[Page 13424]]
Methodology
Commerce is conducting this administrative review in accordance
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the
Act). For each subsidy program found countervailable, we preliminarily
find that there is a subsidy, (i.e., a government-provided financial
contribution that gives rise to a benefit to the recipient, and that
the subsidy is specific).\7\ For a full description of the methodology
underlying our conclusions, including our reliance, in part, on adverse
facts available pursuant to sections 776(a) and (b) of the Act, see the
Preliminary Decision Memorandum.
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\7\ 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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Rescission of Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an
administrative review, in whole or in part, if the parties that
requested a review withdraw the request within 90 days of the date of
publication of the notice of initiation. Commerce received timely-filed
withdrawal requests with respect to the following 12 companies: Zhongce
Rubber Group Co., Ltd.; Giti Tire (Anhui) Company Ltd., Giti Tire
(Fujian) Company Ltd., Giti Tire Global Trading Pte. Ltd.; Weifang
Shunfuchang Rubber and Plastic Products Co., Ltd.; Double Coin Group
(Jiangsu) Tyre Co., Ltd.; Double Coin Tyre Group (Shanghai) Imp & Exp
Co., Ltd.; Qingdao Awesome International Trade Co., Ltd.; Qingdao
Fullrun Tyre Corp. Ltd.; Shandong Haohua Tire Co., Ltd.; Shandong
Kaixuan Rubber Co., Ltd.; and Shandong Transtone Tyre Co., Ltd.,
pursuant to 19 CFR 351.213(d)(1).\8\ Because the withdrawal requests
were timely filed, and no other parties requested a review of these
companies, in accordance with 19 CFR 351.213(d)(1), Commerce is
rescinding this review of the Order with respect to these 12 companies.
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\8\ See Preliminary Decision Memorandum at ``Partial Rescission
of Administrative Review.''
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Intent To Rescind Administrative Review, in Part
It is Commerce's practice to rescind an administrative review of a
countervailing duty order, pursuant to 19 CFR 351.213(d)(3), when there
are no reviewable entries of subject merchandise during the POR for
which liquidation is suspended.\9\ Normally, upon completion of an
administrative review, the suspended entries are liquidated at the
countervailing duty assessment rate calculated for the review
period.\10\ Therefore, for an administrative review of a company to be
conducted, there must be a reviewable, suspended entry that Commerce
can instruct U.S. Customs and Border Protection (CBP) to liquidate at
the calculated countervailing duty assessment rate calculated for the
review period.\11\ According to the CBP import data on the record,
there are three companies, Bridgestone (Shenyang) Tire Co., Ltd.,
Chongqing Hankook Tire Co., Ltd., and Jiangsu Hankook Tire Co., Ltd.,
subject to this review that did not have reviewable entries of subject
merchandise during the POR for which liquidation is suspended.
Accordingly, in the absence of reviewable, suspended entries of subject
merchandise during the POR, we intend to rescind this administrative
review with respect to these three companies, in accordance with 19 CFR
351.213(d)(3).\12\
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\9\ See, e.g., Lightweight Thermal Paper from the People's
Republic of China: Notice of Rescission of Countervailing Duty
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); and
Circular Welded Carbon Quality Steel Pipe from the People's Republic
of China: Rescission of Countervailing Duty Administrative Review;
2017, 84 FR 14650 (April 11, 2019).
\10\ See 19 CFR 351.212(b)(2).
\11\ See 19 CFR 351.213(d)(3).
\12\ The three companies are: Bridgestone (Shenyang) Tire Co.,
Ltd., Chongqing Hankook Tire Co., Ltd., and Jiangsu Hankook Tire
Co., Ltd.
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Preliminary Rate for Non-Selected Companies Under Review
There are two companies for which a review was requested and not
rescinded, and which were not selected as mandatory respondents or
found to be cross-owned with a mandatory respondent. The statute and
Commerce's regulations do not directly address the establishment of
rates to be applied to companies not selected for individual
examination where Commerce limits its examination in an administrative
review pursuant to section 777A(e)(2) of the Act. However, Commerce
normally determines the rates for non-selected companies in reviews in
a manner that is consistent with section 705(c)(5) of the Act, which
provides the basis for calculating the all-others rate in an
investigation.
Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general
rule, to calculate an all-others rate equal to the weighted average of
the countervailable subsidy rates established for exporters and/or
producers individually examined, excluding any rates that are zero, de
minimis, or based entirely on facts available. In this review, the
preliminary rate calculated for Qingdao Ge Rui Da Tire Company (GRT)
the sole mandatory respondent, was not zero, de minimis, or based
entirely on facts available. Therefore, for the companies for which a
review was requested that were not selected as mandatory company
respondents, and for which Commerce did not receive a timely request
for withdrawal of review, Commerce based the preliminary subsidy rate
on the preliminary rate calculated for GRT.
Preliminary Results of Review
We preliminarily find the following net countervailable subsidy
rates for the period January 1, 2021, through December 31, 2021, are as
follows:
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Subsidy rate
Manufacturer/exporter (percent ad
valorem)
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Qingdao Ge Rui Da Rubber Co., Ltd \13\.................. 13.33
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Review-Specific Average Rate Applicable to the Following Companies \14\
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Joyall (Weihai) Tire Co., Ltd........................... 13.33
Triangle Tyre Co., Ltd.................................. 13.33
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Verification
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\13\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Qingdao Ge Rui Da Tire Company: Cooper Tire (China) Investment Co.
Ltd.; Cooper Tire Asia-Pacific (Shanghai) Trading Co., Ltd.; Cooper
(Kunshan) Tire Co., Ltd.; Qingdao Yiyuan Investment Co., Ltd.;
Goodyear Dalian Tire Company Limited; and Goodyear Tire Management
Company (Shanghai) Ltd.
\14\ This rate is based on the rate for the respondent that was
selected for individual review, excluding rates that are zero, de
minimis, or based entirely on facts available. See section
735(c)(5)(A) of the Act.
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While we did not receive a request for verification party, as
provided in section 782(i)(3) of the Act, Commerce intends to verify
the part of the information relied upon for its final results.
Specifically, Commerce intends to verify usage of the export buyer's
credit program as discussed in the Preliminary Decision Memorandum.\15\
Commerce intends to notify parties of its verification procedures.
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\15\ See Preliminary Decision Memorandum at section
``Application of FA and AFA: Export Buyer's Credits.''
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Disclosure and Public Comment
We will disclose to parties in this review, the calculations
performed for these preliminary results within five days after the date
of publication of this notice.\16\ Case briefs or other written
comments may be submitted to the Assistant Secretary for Enforcement
and Compliance. Commerce will notify
[[Page 13425]]
interested parties of the deadline for the submission of case briefs.
Rebuttal briefs, limited to issues raised in case briefs, may be
submitted no later than five days after the deadline date for case
briefs unless otherwise modified by Commerce.\17\ Note that Commerce
has temporarily modified certain of its requirements for serving
documents containing business proprietary information until further
notice.\18\
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\16\ See 19 CFR 351.224(b).
\17\ See 19 CFR 351.309(d)(1).
\18\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10,
2020).
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Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit
case briefs or rebuttal briefs in this review are encouraged to submit
with each argument: (1) A statement of the issue; (2) a brief summary
of the argument; and (3) a table of authorities.
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, 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. Hearing requests should contain the party's name, address, and
telephone number, the number of participants, whether any participant
is a foreign national, and a list of the issues to be discussed. If a
request for a hearing is made, parties will be notified of the date and
time for the hearing to be determined.
Unless extended, we intend to issue the final results of this
administrative review, which will include the results of our analysis
of the issues raised in the case briefs, within 120 days of publication
of these preliminary results in the Federal Register, pursuant to
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).
Cash Deposit Requirements
Pursuant to section 751(a)(2)(C) of the Act, Commerce intends, upon
publication of the final results, to instruct CBP to collect cash
deposits of estimated countervailing duties in the amounts shown for
each of the respondents listed above on shipments of subject
merchandise entered, or withdrawn from warehouse, for consumption on or
after the date of publication of the final results of this
administrative review. If the rate calculated in the final results is
zero or de minimis, no cash deposit will be required on shipments of
the subject merchandise entered or withdrawn from warehouse, for
consumption on or after the date of publication of the final results of
this review.
For all non-reviewed firms, CBP will continue to collect cash
deposits of estimated countervailing duties at the all-others rate or
the most recent company-specific rate applicable to the company, as
appropriate. These cash deposit requirements, when imposed, shall
remain in effect until further notice.
Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Upon completion of the administrative review,
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2),
Commerce shall determine, and CBP shall assess, countervailing duties
on all appropriate entries covered by this review. For the companies
for which this review is rescinded, we will instruct CBP to assess
countervailing duties on all appropriate entries at a rate equal to the
cash deposit of estimated countervailing duties required at the time of
entry, or withdrawal from warehouse, for consumption, during the period
January 1, 2021, through December 31, 2021, in accordance with 19 CFR
351.212(c)(l)(i). For the companies remaining in the review, we intend
to issue assessment instructions to CBP no earlier than 35 days after
the date of publication of the final results of this review in the
Federal Register. If a timely summons is filed at the U.S. Court of
International Trade, the assessment instructions will direct CBP not to
liquidate relevant entries until the time for parties to file a request
for a statutory injunction has expired (i.e., within 90 days of
publication).
Notification to Interested Parties
These preliminary results and notice are issued and published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR
351.213 and 351.221(b)(4).
Dated: February 27, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Non-Selected Companies Under Review
V. Partial Rescission of Administrative Review
VI. Intent to Rescind Administrative Review, In Part
VII. Diversification of China's Economy
VIII. Use of Faces Otherwise Available and Application of Adverse
Inferences
IX. Subsidies Valuation
X. Interest Rate, Discount Rate, Input, Electricity, and Land
Benchmarks
XI. Analysis of Programs
XII. Recommendation
[FR Doc. 2023-04436 Filed 3-2-23; 8:45 am]
BILLING CODE 3510-DS-P