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Truck and Bus Tires From the People's Republic of China: Final Results and Partial Recission of Countervailing Duty Administrative Review; 2021 Publication: Federal Register Agency: International Trade Administration Byline: Lisa W. Wang Date: 12 July 2023 Subjects: American Government  , Tires
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[Federal Register Volume 88, Number 132 (Wednesday, July 12, 2023)]
[Notices]
[Pages 44260-44261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14754]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-041]
Truck and Bus Tires From the People's Republic of China: Final
Results and Partial Recission of Countervailing Duty Administrative
Review; 2021
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies were provided to certain exporters/producers
of truck and bus tires from the People's Republic of China (China)
during the period of review (POR) January 1, 2021, through December 31,
2021. Commerce is also rescinding the review with respect to one
company that had no reviewable entries during the POR.
DATES: Applicable July 12, 2023.
FOR FURTHER INFORMATION CONTACT: Ted Pearson, 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 December 1, 2022, Commerce published the preliminary results of
this administrative review in the Federal Register.\1\ From April 17
through 18, 2023, we conducted an onsite verification of the financing
of the U.S. importers and customers of the mandatory respondent,
Qingdao Ge Rui Da Rubber Co., Ltd. (GRT), for the export buyer's credit
program. On April 27, 2023, we released the verification report to
interested parties.\2\
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\1\ See 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,
88 FR 13423 (March 3, 2023) (Preliminary Results), and accompanying
Preliminary Decision Memorandum.
\2\ See Memorandum, ``Verification of the Export Buyer's Credit
Questionnaire Responses of Qingdao Ge Rui Da Rubber Co., Ltd.,''
dated April 27, 2023.
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For a complete description of the events that occurred since the
Preliminary Results, see the Issues and Decision Memorandum.\3\
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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the Countervailing Duty Administrative Review of
Truck and Bus Tires from the People's Republic of China; 2021,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Scope of the Order 4
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\4\ 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).
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The products covered by the scope of the Order are truck and bus
tires from China. A full description of the scope of the Order is
contained in the Issues and Decision Memorandum.
Analysis of Comments Received
All issues raised by the interested parties in their case and
rebuttal briefs are addressed in the Issues and Decision Memorandum. A
list of topics discussed in the Issues and Decision Memorandum is
provided in the appendix 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. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
Changes Since the Preliminary Results
Based on our analysis of comments from interested parties and the
evidence on the record, we revised the calculation of the net
countervailable subsidy rates for GRT. For a discussion of the issues,
see the Issues and Decision Memorandum.
Methodology
Commerce conducted this administrative 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 government-provided financial
contribution that gives rise to a benefit to the recipient, and that
the subsidy is specific.\5\ For a complete description of the
methodology underlying all of Commerce's conclusions, including our
reliance, in part, on facts otherwise available, including adverse
facts available, pursuant to sections 776(a) and (b) of the Act, see
the Issues and Decision Memorandum.
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\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.
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Partial Rescission of Review
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.\6\ Normally, upon completion of an
administrative review, the suspended entries are liquidated at the
countervailing duty assessment rate calculated for the review
period.\7\ Therefore, for an administrative review of 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.\8\
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\6\ 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).
\7\ See 19 CFR 351.212(b)(2).
\8\ See 19 CFR 351.213(d)(3).
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We continue to find that one company subject to this review,
Chongqing Hankook Tire Co., Ltd. (Chongqing Hankook), did not have
reviewable entries of subject merchandise for which liquidation is
suspended. Because there is no evidence on the record to indicate that
Chongqing Hankook had entries, exports, or sales of subject merchandise
during the POR, we are rescinding this review with respect to Chongqing
Hankook consistent with 19 CFR 351.213(d)(3).
Companies Not Selected for Individual Review
The statute and Commerce's regulations do not address the
establishment of a rate to be applied to companies not selected for
individual examination when 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
[[Page 44261]]
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 the all-others rate
equal to the weighted average of the countervailable subsidy rates
established for exporters and producers individually investigated,
excluding any zero or de minimis countervailable subsidy rates, and any
rates determined entirely on the basis of facts available.
There are four 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 GRT, the mandatory respondent. For these
non-selected companies, because the rate calculated for the only
participating mandatory respondent in this review, GRT, was above de
minimis and not based entirely on facts available, we are applying
GRT's subsidy rate to the four non-selected companies.
This is the same methodology Commerce applied in the Preliminary
Results for determining a rate for companies not selected for
individual examination. However, due to changes in the calculation for
GRT, we revised the non-selected rate accordingly. Consequently, for
the four non-selected companies for which a review was requested and
not rescinded, we are applying an ad valorem subsidy rate of 14.98
percent.
Final Results of Review
We determine find the net countervailable subsidy rates for the
mandatory and non-selected respondents under review for the period
January 1, 2021, through December 31, 2021, to be as follows:
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Subsidy rate
Producer or exporter (percent ad
valorem)
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Qingdao Ge Rui Da Rubber Co., Ltd.\9\................... 14.98
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Review-Specific Average Rate Applicable to the Following Companies
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Bridgestone (Shenyang) Tire Co., Ltd.................... 14.98
Jiangsu Hankook Tire Co., Ltd........................... 14.98
Joyall (Weihai) Tire Co., Ltd........................... 14.98
Triangle Tyre Co., Ltd.................................. 14.98
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Disclosure
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\9\ Commerce finds the following companies to be cross-owned
with Qingdao Ge Rui Da Rubber Co., Ltd.: Cooper Tire (China)
Investment Co. Ltd.; Cooper (Kunshan) Tire Co., Ltd.; Qingdao Yiyuan
Investment Co., Ltd.; Goodyear Dalian Tire Company Limited; and
Goodyear Tire Management Company (Shanghai) Ltd. In the Preliminary
Results, we inadvertently included Cooper Tire Asia-Pacific
(Shanghai) Trading Co., Ltd. (CTAP) among the cross-owned companies.
However, as discussed in the accompanying Preliminary Decision
Memorandum (PDM), we found that CTAP did not satisfy our attribution
criteria during the POR. See Preliminary Results PDM at 22.
Therefore, we are not including CTAP in the list of companies found
be cross-owned in this review.
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Commerce intends to disclose calculations and analysis performed
for the final results of review within five days after the date of
publication of this notice in the Federal Register in accordance with
19 CFR 351.224(b).
Cash Deposit Requirements
In accordance with section 751(a)(1) of the Act, Commerce also
intends to instruct CBP to collect cash deposits of estimated
countervailing duties in the amounts shown above for the above-listed
companies with regard to shipments of subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of these final results of review. For all non-reviewed
firms, we will instruct CBP to 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, effective upon publication of these
final results, shall remain in effect until further notice.
Assessment Requirements
In accordance with section 751(a)(2)(C) of the Act and 19 CFR
351.212(b)(2), Commerce has determined, and U.S. Customs and Border
Protection (CBP) shall assess, countervailing duties on all appropriate
entries covered by this review, for the above-listed companies at the
applicable ad valorem assessment rates listed. Commerce intends to
issue assessment instructions to CBP no earlier than 35 days after
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).
Administrative Protective Order
This notice also serves as a final reminder to parties subject to
an administrative protective order (APO) of their responsibility
concerning the disposition 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.
Notification to Interested Parties
The final results are issued and published in accordance with
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5).
Dated: July 6, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
V. Non-Selected Rate
VI. Subsidies Valuation
VII. Use of Facts Otherwise Available and Application of Adverse
Inferences
VIII. Analysis of Programs
IX. Discussion of Issues
Comment 1: Whether the Provision of Inputs for Less Than
Adequate Remuneration (LTAR) Constitutes a Financial Contribution
Comment 2: Whether Commerce Appropriately Found That the
Provision of Land-Use Rights for LTAR Constitutes a Financial
Contribution
Comment 3: Whether the Provision of Electricity for LTAR Is
Countervailable
Comment 4: Whether the Benchmark for Electricity Includes Value-
Added Tax (VAT)
Comment 5: Whether Commerce Should Revise the Calculation of
Various Input LTAR Programs
Comment 6: Whether Commerce Should Revise the Sales Denominator
for a Parent Company
Comment 7: Whether Commerce Should Update the Loan Benchmarks
Used for Government Policy Lending
Comment 8: Whether the Respondent Failed Verification for the
Export Buyer's Credit (EBC) Program
Comment 9: Whether Commerce Should Make an Adjustment to the
Benchmark Used To Value the Provision of Land-Use Rights
Comment 10: Whether Commerce Should Revise the Sales Denominator
Calculated for an Input Supplier
X. Recommendation
[FR Doc. 2023-14754 Filed 7-11-23; 8:45 am]
BILLING CODE 3510-DS-P