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Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review and Rescission of Review, in Part; 2019 Publication: Federal Register Agency: International Trade Administration Byline: Lisa W. Wang Date: 10 March 2022 Subjects: American Government  , Tires
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[Federal Register Volume 87, Number 47 (Thursday, March 10, 2022)]
[Notices]
[Pages 13704-13705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05068]
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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: Final Results of Countervailing Duty Administrative
Review and Rescission of Review, in Part; 2019
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that certain
producers/exporters of certain passenger vehicle and light truck tires
from the People's Republic of China (China) received countervailable
subsidies during the period of review (POR), January 1, 2019, through
December 31, 2019. Additionally, we are rescinding the review for eight
companies with no shipments of subject merchandise to the United States
during the POR.
DATES: Applicable March 10, 2022.
FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski or 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) 482-1395
and (202) 482-3463, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 7, 2021, Commerce published the Preliminary Results of
this review and invited comments from interested parties.\1\ On
December 6, 2021, Commerce extended the deadline for the final results
of this administrative review until March 4, 2022.\2\ For a complete
description of the events that occurred since the Preliminary Results,
see the Issues and Decision Memorandum.\3\
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\1\ See Certain Passenger Vehicle and Light Truck Tires from the
People's Republic of China: Preliminary Results of Countervailing
Duty Administrative Review Rescission in Part, and Intent To Rescind
in Part; 2019, 86 FR 50027 (September 7, 2021) (Preliminary
Results), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Passenger Vehicles and Light Truck Tires
from the People's Republic of China: Extension of Deadline for Final
Results of Countervailing Duty Administrative Review; 2019,'' dated
December 6, 2021.
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the Countervailing Duty Administrative Review of
Certain Passenger Vehicle and Light Truck Tires from the People's
Republic of China; 2019,'' dated concurrently with, and hereby
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Order
The products covered by the order are passenger vehicle and light
truck tires from China. For a complete description of the scope of this
order, see 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 these issues 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 CVD
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 the comments received from interested parties, we revised
the calculation of the net countervailable subsidy rates for Sumitomo
Rubber (Hunan) Co., Ltd. (SRH), Triangle Tyre Co., Ltd., and the non-
selected respondents. For a discussion of these issues, see the Issues
and Decision Memorandum.
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 determine 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.\4\ The Issues and Decision Memorandum contains a full
description of the methodology underlying Commerce's conclusions,
including any determination that relied upon the use of facts otherwise
available, including, adverse facts available, pursuant to sections
776(a) and (b) of the Act.
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\4\ 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
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.\5\ Normally, upon completion of an
administrative review, the suspended entries are liquidated at the
countervailing duty assessment rate calculated for the review
period.\6\ 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.\7\
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\5\ 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).
\6\ See 19 CFR 351.212(b)(2).
\7\ See 19 CFR 351.213(d)(3).
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[[Page 13705]]
According to the CBP import data, eight companies subject to this
review did not have reviewable entries of subject merchandise during
the POR for which liquidation is suspended.\8\ Further, in response to
the Preliminary Results, no party submitted information to contradict
the information on the record. Therefore, because there is no evidence
on the record of this segment of the proceeding to indicate that these
companies had entries, exports, or sales of subject merchandise to the
United States during the POR, we are rescinding the administrative
review with respect to these companies, consistent with 19 CFR
351.213(d)(3).
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\8\ These companies are: Hankook Tire China Co., Ltd.; Prinx
Chengshan (Shandong) Tire Company Ltd.; Qingdao Fullrun Tyre Tech
Corp., Ltd.; Qingdao Honghuasheng Trade Co., Ltd; Qingdao Kapsen
Trade Co.; Shandong Habilead Rubber Co., Ltd.; Shandong Hongsheng
Rubber Technology Co., Ltd.; and Shandong Qilun Rubber Co., Ltd.
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Rate for Non-Selected Companies Under Review
There are three companies for which a review was requested and not
rescinded, and which were not selected as mandatory respondents. For
these companies, we are applying the rate calculated for the sole
mandatory respondent, Sumitomo Rubber (Hunan) Co., Ltd. (Sumitomo
Rubber), which is above de minimis and not based entirely on facts
available. This methodology to establish the non-selected subsidy rate
is consistent with our practice and uses section 705(c)(5)(A) of the
Act, which governs the calculation of the all-others rate in
investigations, as guidance.
Final Results of Review
We determine the following net countervailable subsidy rates for
the POR January 1, 2019, through December 31, 2019:
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Subsidy
rate
Producer/exporter (percent ad
valorem)
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Sumitomo Rubber (Hunan) Co., Ltd. and its cross-owned 24.79
affiliates.\9\............................................
Triangle Tyre Co., Ltd.\10\................................ 124.53
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Review-Specific Average Rate Applicable to the Following Companies
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Jiangsu Hankook Tire Co., Ltd.............................. 24.79
Qingdao Landwinner Tyre Co., Ltd........................... 24.79
Shandong Province Sanli Tire Manufacture Co., Ltd.......... 24.79
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Disclosure
We intend to disclose to interested parties the calculations and
analysis performed for these final results of this review within five
days of the date of publication of this notice, in accordance with 19
CFR 351.224(b).
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\9\ Commerce finds the following companies to be cross owned
with Sumitomo Rubber (Hunan) Co., Ltd.: Sumitomo Rubber (China) Co.,
Ltd. and Sumitomo Rubber (Changshu) Co. Ltd.
\10\ This rate is based on the rates for the respondents that
were selected for individual review, excluding rates that are zero,
de minimis, or based entirely on facts available. See section
705(c)(5)(A) of the Act.
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Assessment
In accordance with section 751(a)(2)(C) 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. Commerce intends to issue assessment instructions to CBP no
earlier than 35 days after the date of this 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).
With respect to the companies for which this administrative review
is rescinded, countervailing duties shall be assessed at rates equal to
the cash deposit rate required at the time of entry, or withdrawal from
warehouse, for consumption, during the period January 1, 2019, through
December 31, 2019, in accordance with 19 CFR 351.212(c)(1)(i).
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, CBP will continue to collect cash deposits of estimated
countervailing duties at the most recent company-specific or all-others
rate applicable to the company, as appropriate. These cash deposit
requirements, when imposed, shall remain in effect until further
notice.
Administrative Protective Order
This notice serves as a final 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 return or destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
These final results are issued and published in accordance with
sections 751(a)(1) and 777(i) of the Act and 19 CFR 351.221(b)(5).
Dated: March 3, 2022.
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. Subsidies Valuation
V. Use of Facts Otherwise Available and Application of Adverse
Inferences
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Whether Commerce Should Reverse its Decision to
Countervail the Export Buyer's Credit Program (EBCP) based on
Adverse Facts Available (AFA)
Comment 2: Whether Commerce Should Reverse its Decision to Apply
AFA in Finding that the Domestic Producers that Supplied Inputs are
``Authorities''
Comment 3: Whether Commerce Should Use World Export Prices as
the Tier-Two Benchmark Prices to Calculate the Alleged Input
Subsidies
Comment 4: Whether Commerce Should Adjust for Ocean Freight if
it Continues to Rely on Import Prices as the Tier-One Benchmark for
Inputs
Comment 5: Whether Commerce Should Apply AFA on Electricity for
LTAR
Comment 6: Whether Commerce Should Apply AFA to ``Other
Subsidies''
Comment 7: Whether Commerce Should Treat the Assistance for
Deployment of Trade as an Export Subsidy for SRH
Comment 8: Whether Commerce Should Apply a Separate Adverse Rate
for the Enterprise Income Tax Law, R&D Program
VIII. Recommendation
[FR Doc. 2022-05068 Filed 3-9-22; 8:45 am]
BILLING CODE 3510-DS-P