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Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, Rescission of Administrative Review in Part; and Intent To Rescind in Part; 2021

Publication: Federal Register
Agency: International Trade Administration
Byline: Lisa Wang
Date: 5 May 2023
Subject: American Government , Tires

[Federal Register Volume 88, Number 87 (Friday, May 5, 2023)]
[Notices]
[Pages 29095-29097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09636]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-017]


Certain Passenger Vehicle and Light Truck Tires From the People's 
Republic of China: Preliminary Results of Countervailing Duty 
Administrative Review, Rescission of Administrative 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 countervailable subsidies are being provided to 
producers and exporters of certain passenger vehicle and light truck 
tires from the People's Republic of China (China) during the period of 
review (POR), January 1, 2021, through December 31, 2021. We are 
rescinding the review with respect to fifteen companies and announcing 
our preliminary intent to rescind this review with respect to four 
companies. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable May 5, 2023.

FOR FURTHER INFORMATION CONTACT: Richard Roberts, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: 202-482-2631.

SUPPLEMENTARY INFORMATION: 

Background

    On August 10, 2015, Commerce published in the Federal Register the 
countervailing duty order on certain passenger vehicle and light truck 
tires from China.\1\ On October 11, 2022, Commerce published in the 
Federal Register the notice of initiation of an administrative review 
of the Order for the period January 1, 2021, through December 31, 
2021.\2\ On December 22, 2022, Commerce selected Qingdao Keter 
International Co., Limited (Keter) and Shandong Haohua Tire Co., Ltd. 
(Haohua) as the mandatory respondents; however, on December 23, 2022 
and January 3, 2023, Keter and Haohua timely withdrew their requests 
for an administrative review, respectively.\3\ As a result, on January 
12, 2023, Commerce selected Shandong Province Sanli Tire Manufactured 
Co., Ltd. (Sanli) as a mandatory respondent.\4\
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    \1\ See Certain Passenger Vehicle and Light Truck Tires from the 
People's Republic of China: Amended Final Affirmative Antidumping 
Duty Determination and Antidumping Duty Order; and Amended Final 
Affirmative Countervailing Duty Determination and Countervailing 
Duty Order, 80 FR 47902 (August 10, 2015) (Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 61278 (October 11, 2022) (Initiation 
Notice).
    \3\ See Keter's Letter, ``Withdrawal of Request for 
Administrative Review,'' dated December 23, 2022; and Haohua's 
Letter, ``Withdrawal of Request for Administrative Review,'' dated 
January 3, 2023.
    \4\ See Memorandum, ``Second Respondent Selection,'' dated 
January 12, 2023.
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    On January 13, 2023, Sanli attempted to withdraw its request for an 
administrative review,\5\ but we rejected it as untimely.\6\ On January 
23, 2023, we issued an initial questionnaire to the Government of China 
(GOC) requesting information on programs which may constitute subsidies 
under U.S. law that were used by the respondent, Sanli.\7\ On February 
6, 2023, Sanli provided a notice of intent not to participate in this 
review.\8\ On February 6, 2023, in response to Sanli's notice, Commerce 
selected Zhongce Rubber Group Co., Ltd. (Zhongce) as an additional 
mandatory respondent.\9\ On February 7, 2023, Commerce requested that 
the GOC forward the initial questionnaire to Zhongce.\10\ On February 
10, 2023, Zhongce provided a notice of intent not

[[Page 29096]]

to participate in this review.\11\ We received no response from the GOC 
to Commerce's initial questionnaire.
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    \5\ See Sanli's Letter, ``Second Respondent Selection,'' dated 
January 13, 2023.
    \6\ See Memorandum, ``Denial of a Late Withdrawal of Review 
Request,'' dated January 20,2023.
    \7\ See Commerce's Letter, ``2021 Countervailing Duty 
Administrative Review of Passenger Vehicle and Light Truck Tires 
from the People's Republic of China: Selection of Additional 
Mandatory Respondent,'' dated February 7, 2023.
    \8\ See Sanli's Letter, ``Notice of Intent Not to Participate,'' 
dated February 6, 2023.
    \9\ See Memorandum, ``Selection of Zhongce Rubber Group Co., 
Ltd. as Additional Mandatory Respondent,'' dated February 6, 2023.
    \10\ See Commerce's Letter ``Selection of Additional Mandatory 
Respondent,'' dated February 7, 2023.
    \11\ See Zhongce's Letter, ``Notice of Intent Not to Participate 
& Withdraw as Counsel,'' dated February 10, 2023.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\12\ 
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 https://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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    \12\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of Countervailing Duty Administrative Review, Recission in 
Part, and Preliminary Intent to Rescind in Part; 2021: Certain 
Passenger Vehicles and Light Truck 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 certain passenger vehicle and 
light truck tires from China. For a complete description of the scope, 
see the Preliminary Decision Memorandum.\13\
---------------------------------------------------------------------------

    \13\ Id.
---------------------------------------------------------------------------

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).\14\ For a full description of the methodology 
underlying our conclusions, including our reliance, in part, on adverse 
facts available (AFA) pursuant to sections 776(a) and (b) of the Act, 
see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \14\ 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.
---------------------------------------------------------------------------

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 fourteen following companies: 
(1) Sumitomo Rubber (Hunan) Co., Ltd; and (2) Sumitomo Rubber 
(Changshu) Co., Ltd, (collectively, Sumitomo); \15\ (3) Giti Tire 
Global Trading Pte. Ltd; (4) Giti Radial Tire (Anhui) Company Ltd; and 
(5) Giti Tire (Fujian) Company Ltd., (collectively, Giti Companies); 
\16\ (6) Roadclaw Tyre (Hong Kong) Limited (Roadclaw); (7) Winrun Tyre 
Co., Ltd (Winrun); \17\ (8) Hankook Tire China Co., Ltd; and (9) 
Jiangsu Hankook Tire Co., Ltd, (collectively, Hankook); \18\ (10) 
Qingdao Keter International Co., Limited; \19\ (11) Qingdao Lakesea 
Tyre Co., Ltd.; (12) Shandong Haohua Tire Co., Ltd.; and (13) Zhaoqing 
Junhong Co., Ltd; \20\ and (14) Mayrun Tyre (Hong Kong) Limited 
(Mayrun),\21\ pursuant to 19 CFR 351.213(d)(1).\22\ 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 
fourteen companies noted above.
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    \15\ In the Initiation Notice, Sumitomo Rubber Industries, Ltd. 
was inadvertently listed as a company for which a review was 
requested, however, a review was only requested with respect to its 
subsidiaries, Sumitomo Rubber (Hunan) Co., Ltd and Sumitomo Rubber 
(Changshu) Co., Ltd.
    \16\ See Giti Companies' Letter, ``Withdrawal of Request for 
Review,'' dated October 26, 2022.
    \17\ See Roadclaw and Winrun's Letter, ``Withdrawal of Request 
for Administrative Review,'' dated November 15, 2022.
    \18\ See Hankook's Letter, ``Withdrawal of Request for 
Administrative Review,'' dated December 16, 2022.
    \19\ See Keter's Letter, ``Withdrawal of Request for 
Administrative Review,'' dated December 23, 2022.
    \20\ See Lakesea, Haohua, and Zahoqing's Letter, ``Withdrawal of 
Request for Administrative Review,'' dated January 3, 2023.
    \21\ See Mayrun's Letter, ``Withdrawal of Request for 
Administrative Review,'' dated January 9, 2023.
    \22\ 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.\23\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the 
countervailing duty assessment rate calculated for the review 
period.\24\ 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.\25\
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    \23\ Id.
    \24\ See 19 CFR 351.212(b)(2).
    \25\ See 19 CFR 351.213(d)(3).
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    According to the CBP import data on the record, there are four 
companies subject to this review that did not have reviewable entries 
of subject merchandise during the POR for which liquidation is 
suspended: (1) Qingdao Fullrun Tyre Corp., Ltd.; (2) Shandong Changfeng 
Tyres Co., Ltd.; (3) Shandong Duratti Rubber Corporation Co., Ltd.; and 
(4) Shandong Transtone Tyre Co., Ltd. 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 four 
companies, in accordance with 19 CFR 351.213(d)(3).

Preliminary Results of Review

    As a result of this administrative review, we preliminarily find 
that the following net countervailable subsidy rates exist for the 
period January 1, 2021, through December 31, 2021:

------------------------------------------------------------------------
                                                           Subsidy rate
                    Producer/exporter                       (percent ad
                                                             valorem)
------------------------------------------------------------------------
Shandong Province Sanli Tire Manufactured Co., Ltd......          125.50
Zhongce Rubber Group Co., Ltd...........................          125.50
------------------------------------------------------------------------

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

[[Page 29097]]

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 for the producer/exporters shown 
above. Consistent with section 751(a)(1) of the Act and 19 CFR 
351.212(b)(2), upon issuance of the final results, Commerce shall 
determine, and CBP shall assess, countervailing duties on all 
appropriate entries covered by this 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).
    For the companies for which this review is rescinded with these 
preliminary results, 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 July 13, 
2020, through December 31, 2021, in accordance with 19 CFR 
351.212(c)(l)(i).

Disclosure

    Normally, Commerce discloses its calculations and analysis 
performed in connection with the preliminary results to interested 
parties within five days of its public announcement, or if there is no 
public announcement, within five days of the date of publication of 
this notice, in accordance with 19 CFR 351.224(b). However, because 
Commerce preliminarily applied total AFA in the calculation of the 
benefit for Sanli and Zhongce, and the applied AFA rates are based on 
rates calculated in prior segments of the proceeding, there are no 
calculations to disclose.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 30 
days after the publication of these preliminary results of review in 
the Federal Register.\26\ Rebuttal comments, limited to issues raised 
in case briefs, may be submitted no later than seven days after the 
deadline for filing case briefs.\27\ Parties who submit case or 
rebuttal briefs in this administrative 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.\28\ Case and rebuttal 
briefs must be filed using ACCESS.\29\ An electronically filed document 
must be received successfully in its entirety by ACCESS by 5:00 p.m. 
Eastern Time on the established deadline. Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\30\
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    \26\ See 19 CFR 351.309(c)(1)(ii).
    \27\ See 19 CFR 351.309(d).
    \28\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
    \29\ See 19 CFR 351.303.
    \30\ See 19 CFR 351.309; 19 CFR 351.303 (for general filing 
requirements); 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 351.310(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: (1) the party's name, address, 
and telephone number; (2) the number of participants; and (3) 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.

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 19 CFR 351.221(b)(4).

    Dated: May 1, 2023.
Lisa Wang,
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. Partial Rescission of Administrative Review
V. Intent to Rescind Administrative Review, In Part
VI. Diversification of China's Economy
VII. Use of Faces Otherwise Available and Application of Adverse 
Inferences
IX. Recommendation

[FR Doc. 2023-09636 Filed 5-4-23; 8:45 am]
BILLING CODE 3510-DS-P




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