Certain New Pneumatic Off-the-Road Tires From India and the People's Republic of China: Initiation of Less-Than-Fair-Value Investigations |
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Paul Piquado
Department of Commerce
10 February 2016
[Federal Register Volume 81, Number 27 (Wednesday, February 10, 2016)]
[Notices]
[Pages 7073-7081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02701]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-869, A-570-034]
Certain New Pneumatic Off-the-Road Tires From India and the
People's Republic of China: Initiation of Less-Than-Fair-Value
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective date: February 3, 2016.
FOR FURTHER INFORMATION CONTACT: Stephen Bailey at (202) 482-0193
(India) and Alex Rosen at (202) 482-7814 (PRC), AD/CVD Operations,
Enforcement and Compliance, U.S. Department of Commerce, 14th Street
and Constitution Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On January 8, 2016, the Department of Commerce (Department)
received antidumping duty (AD) petitions concerning imports of certain
new pneumatic off-the-road tires (off road tires) from the People's
Republic of China (PRC) and India, filed in proper form on behalf of
Titan Tire Corporation (Titan) and the United Steel, Paper and
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service
Workers International Union, AFL-CIO, CLC (USW) (collectively,
Petitioners).\1\ The AD petitions were accompanied by three
countervailing duty (CVD) petitions for the PRC, India and Sri
Lanka.\2\ Petitioners are a domestic producer of off road tires and a
recognized union, which represents the domestic industry engaged in the
manufacture of off road tires in the United States.\3\
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\1\ See Petitions for the Imposition of Antidumping Duties on
Imports of Certain New Pneumatic Off-the-Road Tires from India and
the People's Republic of China and Countervailing Duties on Imports
of Certain New Pneumatic Off-the-Road Tires from India, the People's
Republic of China, and Sri Lanka, dated January 8, 2016
(collectively, Petitions).
\2\ Id.
\3\ See Volume I of the Petitions, at I-2.
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On January 12, 2016, the Department requested additional
information and clarification of certain areas of the AD Petitions.\4\
Petitioners filed responses to
[[Page 7074]]
these requests on January 14, 2016,\5\ provided further information
regarding India on January 19, 2016,\6\ and provided further
clarification regarding scope on January 20, 2016.\7\ On January 21,
2016, ATC Tires Private Ltd. and Alliance Tire Americas, Inc.
(collectively, Alliance) provided comments on domestic industry support
and requested that the Department poll the domestic industry with
respect to the Petitions.\8\ On January 22, 2016, Petitioners provided
a response to Alliance's comments on industry support and request for
polling.\9\ Alliance provided additional comments on January 28,
2016.\10\ On January 27, 2016, the Department determined to toll all
deadlines four business days as a result of the Federal Government
closure during snowstorm ``Jonas'', applicable to this initiation.
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\4\ See the following January 12, 2016, letters from the
Department to Petitioners: ``Petition for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain New
Pneumatic Off-The-Road Tires from India and The People's Republic of
China and Countervailing Duties on Imports from Sri Lanka:
Supplemental Questions'' (General Issues Supplemental
Questionnaire), ``Petition for the Imposition of Antidumping Duties
on Imports of Certain New Pneumatic Off-the-Road Tires from The
People's Republic of China: Supplemental Questions,'' and ``Petition
for the Imposition of Antidumping Duties on Imports of Certain New
Pneumatic Off-the-Road Tires from India: Supplemental Questions.''
\5\ See the following January 14, 2016, responses from
Petitioners: ``Petitioners' Response to the Department's January 12,
2016, Supplemental Questionnaire Regarding General Issues,''
(General Issues Supplement); ``Petitioners' Response to the
Department's January 12, 2016 Supplemental Questions Regarding the
Antidumping Petition on China (A-570-034),'' (PRC Supplemental
Response); ``Petitioners' Response to the Department's January 12,
2016 Supplemental Questions Regarding the Antidumping Duty Petition
on India'' (First India Supplemental Response); and ``Scope
Supplement to the Petitions for the Imposition of Antidumping Duties
on Imports of Certain New Pneumatic Off-the-Road Tires from India
and the People's Republic of China and Countervailing Duties on
Imports of Certain New Pneumatic Off-the-Road Tires from India, the
People's Republic of China, and Sri Lanka'' (First Scope
Supplement).
\6\ See Petitioners' submission, ``Petitioners' Second
Supplement to the Antidumping Duty Petition on India,'' dated
January 19, 2016 (Second India Supplemental Response). We note that
Petitioners' submission of the Second India Supplemental Response
was unsolicited by the Department. For further information, see the
Department's memorandum to the File, ``Petition for Initiation of
Antidumping Duty Investigation of Certain New Pneumatic Off-the-Road
Tires from India: Conference Call with Counsel to Petitioners,''
dated January 22, 2016.
\7\ See Petitioners' submission, ``Second Scope Supplement to
the Petitions for the Imposition of Antidumping Duties on Imports of
Certain New Pneumatic Off-the-Road Tires from India and the People's
Republic of China and Countervailing Duties on Imports of Certain
New Pneumatic Off-the-Road Tires from India, the People's Republic
of China, and Sri Lanka,'' dated January 20, 2016 (Second Scope
Supplement).
\8\ See letter from Alliance, ``Certain New Pneumatic Off-the-
Road Tires from India, the People's Republic of China and Sri Lanka:
Comments on Industry Support,'' dated January 21, 2016 (Alliance
Letter).
\9\ See letter from Petitioners, ``Petitioners' Response to
Alliance's Polling Request Regarding the Petitions for the
Imposition of Antidumping Duties on Imports of Certain New Pneumatic
Off-the-Road Tires from India and the People's Republic of China and
Countervailing Duties on Imports of Certain New Pneumatic Off-the-
Road Tires from India, the People's Republic of China, and Sri
Lanka,'' dated January 22, 2016 (``Petitioners' Response to Alliance
Letter'').
\10\ See letter from Alliance, ``Certain New Pneumatic Off-the-
Road Tires from India, the People's Republic of China and Sri Lanka:
Reply Comments on Industry Support,'' dated January 21, 2016
(``Alliance Letter II'').
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As explained in the memorandum from the Acting Assistant Secretary
for Enforcement and Compliance, the Department has exercised its
discretion to toll all administrative deadlines due to the recent
closure of the Federal Government. All deadlines in this segment of the
proceeding have been extended by four business days. The revised
deadline for the initiation of these AD investigations is now February
3, 2016.\11\
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\11\ See Memorandum to the Record from Ron Lorentzen, Acting A/S
for Enforcement & Compliance, regarding ``Tolling of Administrative
Deadlines As a Result of the Government Closure During Snowstorm
Jonas,'' dated January 27, 2016.
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), Petitioners alleged that imports of off road tires
from India and the PRC are being, or are likely to be, sold in the
United States at less-than-fair value within the meaning of section 731
of the Act, and that such imports are materially injuring, or
threatening material injury to, an industry in the United States. Also,
consistent with section 732(b)(1) of the Act, the Petitions are
accompanied by information reasonably available to Petitioners
supporting their allegations.
The Department finds that Petitioners filed these Petitions on
behalf of the domestic industry because Petitioners are interested
parties as defined in sections 771(9)(C) and (D) of the Act. The
Department also finds that Petitioners demonstrated sufficient industry
support with respect to the initiation of the AD investigations that
Petitioners are requesting.\12\
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\12\ See the ``Determination of Industry Support for the
Petitions'' section below.
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Periods of Investigation
Pursuant to 19 CFR 351.204(b)(1), because the Petitions were filed
on January 8, 2016, the period of investigation (POI) is January 1,
2015, through December 31, 2015, for India and July 1, 2015, through
December 31, 2015, for the PRC.
Scope of the Investigations
The product covered by these investigations is off road tires from
India and the PRC. For a full description of the scope of these
investigations, see the ``Scope of the Investigations'' in Appendix I
of this notice. As explained in more detail in Appendix I, the scope of
the PRC investigation is narrower than the scope of the investigation
from India because the PRC investigation excludes any products covered
by the existing antidumping and countervailing duty orders on Certain
New Pneumatic Off-the-Road Tires from the PRC.\13\
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\13\ See Certain New Pneumatic Off-the-Road Tires From the
People's Republic of China: Notice of Amended Final Affirmative
Determination of Sales at Less Than Fair Value and Antidumping Duty
Order, 73 FR 51624 (September 4, 2008) (A-570-912) and Certain New
Pneumatic Off-the-Road Tires From the People's Republic of China:
Countervailing Duty Order, 73 FR 51626 (September 4, 2008) (C-570-
913).
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Comments on Scope of the Investigations
During our review of the Petitions, the Department issued questions
to, and received responses from, Petitioners pertaining to the proposed
scope to ensure that the scope language in the Petitions would be an
accurate reflection of the products for which the domestic industry is
seeking relief.\14\
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\14\ See General Issues Supplemental Questionnaire and First and
Second Scope Supplements.
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As discussed in the preamble to the Department's regulations,\15\
we are setting aside a period for interested parties to raise issues
regarding product coverage (scope). The Department will consider all
comments received from parties and, if necessary, will consult with
parties prior to the issuance of the preliminary determinations. If
scope comments include factual information (see 19 CFR 351.102(b)(21)),
all such factual information should be limited to public information.
In order to facilitate preparation of its questionnaires, the
Department requests all interested parties to submit such comments by
5:00 p.m. Eastern Time (ET) on Tuesday, February 23, 2016, which is 20
calendar days from the signature date of this notice. Any rebuttal
comments, which may include factual information, must be filed by 5:00
p.m. ET on Friday, March 4, 2016, which is 10 calendar days after the
initial comments deadline.
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\15\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
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The Department requests that any factual information the parties
consider relevant to the scope of the investigations be submitted
during this time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party may contact the
[[Page 7075]]
Department and request permission to submit the additional information.
All such comments must be filed on the records of each of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS).\16\ An electronically
filed document must be received successfully in its entirety by the
time and date when it is due. Documents excepted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230, and stamped with the date and time of receipt by
the applicable deadlines.
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\16\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of the Department's electronic
filing requirements, which went into effect on August 5, 2011.
Information on help using ACCESS can be found at https://access.trade.gov/help.aspx and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires
The Department requests comments from interested parties regarding
the appropriate physical characteristics of off road tires to be
reported in response to the Department's AD questionnaires. This
information will be used to identify the key physical characteristics
of the subject merchandise in order to report the relevant factors and
costs of production accurately as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics and (2) product-comparison criteria. We note that it is
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe off road tires, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, the Department attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all comments must be
filed by 5:00 p.m. ET on Tuesday, February 23, 2016, which is twenty
calendar days from the signature date of this notice. Any rebuttal
comments must be filed by 5:00 p.m. ET on Monday, February 29,
2016.\17\ All comments and submissions to the Department must be filed
electronically using ACCESS, as explained above, on the records of both
the India and the PRC less-than-fair-value investigations.
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\17\ Where the deadline falls on a weekend/holiday, the
appropriate date is the next business day. Because five days from
February 23, 2016, is Sunday, February 28, 2016, the actual
submission date is Monday, February 29, 2016.
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Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product,\18\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, the Department's
determination is subject to limitations of time and information.
Although this may result in different definitions of the like product,
such differences do not render the decision of either agency contrary
to law.\19\
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\18\ See section 771(10) of the Act.
\19\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
Petitions).
With regard to the domestic like product, Petitioners do not offer
a definition of the domestic like product distinct from the scope of
the investigations. Based on our analysis of the information submitted
on the record, we have determined that off road tires constitute a
single domestic like product and we have analyzed industry support in
terms of that domestic like product.\20\
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\20\ For a discussion of the domestic like product analysis in
this case, see Antidumping Duty Investigation Initiation Checklist:
Certain New Pneumatic Off-the-Road Tires from India (India AD
Checklist), at Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Certain New
Pneumatic Off-the-Road Tires from India, the People's Republic of
China, and Sri Lanka (Attachment II); and Antidumping Duty
Investigation Initiation Checklist: Certain New Pneumatic Off-the-
Road Tires from the People's Republic of China (PRC AD Initiation
Checklist), at Attachment II. These checklists are dated
concurrently with this notice and on file electronically via ACCESS.
Access to documents filed via ACCESS is also available in the
Central Records Unit, Room B8024 of the main Department of Commerce
building.
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In determining whether Petitioners have standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in
[[Page 7076]]
Appendix I of this notice. To establish industry support, Petitioners
provided Titan's production of the domestic like product in 2015 and
estimated the 2015 production for each remaining U.S. producer of off
road tires, by plant. Petitioners based their estimates of 2015 off
road tire production by plant on daily plant-specific production
capacity data published in Modern Tire Dealer. Petitioners multiplied
the daily production capacity data by 360 (to estimate annual capacity)
and then multiplied the annual production capacity for each plant by
Titan's capacity utilization rate, which Petitioners believe is
representative of the U.S. off road tires industry (to estimate
domestic production by each plant). To calculate industry support,
Petitioners added Titan's 2015 production of the domestic like product
to the estimated 2015 production of the domestic like product for those
plants represented by the USW, and divided the result by the estimated
production of the domestic like product in 2015 for the entire U.S. off
road tires industry.\21\ We relied on data Petitioners provided for
purposes of measuring industry support.\22\
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\21\ See Volume I of the Petitions, at I-5--I-9 and Exhibits I-
3--I-9 and I-33; see also General Issues Supplement, at 4-9 and
Exhibits I-SQ-1, I-SQ-5--I-SQ-8.
\22\ Id. For further discussion, see India AD Initiation
Checklist and PRC AD Initiation Checklist, at Attachment II.
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On January 21, 2016, we received comments on industry support from
Alliance, an Indian producer of the subject merchandise and its U.S.
importer.\23\ Petitioners responded to these comments on January 22,
2016.\24\ Alliance submitted additional industry support comments on
January 28, 2016.\25\ For further discussion of these comments, see the
India AD Initiation Checklist and PRC AD Initiation Checklist, at
Attachment II.
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\23\ See Alliance Letter.
\24\ See Petitioners' Response to the Alliance Letter.
\25\ See Alliance Letter II.
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Our review of the data provided in the Petitions, General Issues
Supplement, letters from Alliance and Petitioners, and other
information readily available to the Department indicates that
Petitioners have established industry support.\26\ First, the Petitions
established support from domestic producers and workers accounting for
more than 50 percent of the total production of the domestic like
product and, as such, the Department is not required to take further
action in order to evaluate industry support (e.g., polling).\27\
Second, the domestic producers and workers have met the statutory
criteria for industry support under section 732(c)(4)(A)(i) of the Act
because the domestic producers and workers who support the Petitions
account for at least 25 percent of the total production of the domestic
like product.\28\ Finally, the domestic producers and workers have met
the statutory criteria for industry support under section
732(c)(4)(A)(ii) of the Act because the domestic producers and workers
who support the Petitions account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry expressing support for, or opposition to, the Petitions.\29\
Accordingly, the Department determines that the Petitions were filed on
behalf of the domestic industry within the meaning of section 732(b)(1)
of the Act.
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\26\ See India AD Initiation Checklist and PRC AD Initiation
Checklist, at Attachment II.
\27\ See section 732(c)(4)(D) of the Act; see also India AD
Initiation Checklist and PRC AD Initiation Checklist, at Attachment
II.
\28\ See India AD Initiation Checklist and PRC AD Initiation
Checklist, at Attachment II.
\29\ Id.
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The Department finds that Petitioners filed the Petitions on behalf
of the domestic industry because they are interested parties as defined
in sections 771(9)(C) and (D) of the Act and they have demonstrated
sufficient industry support with respect to the AD investigations that
they are requesting the Department initiate.\30\
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\30\ Id.
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Allegations and Evidence of Material Injury and Causation
Petitioners allege that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the imports of the subject merchandise
sold at less than normal value (NV). In addition, with regard to India,
Petitioners allege that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\31\
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\31\ See Volume I of the Petitions, at I-27, I-28 and Exhibit I-
17.
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With regard to the PRC, Petitioners argue that the covered tires
are entered under at least fifteen basket categories that do not permit
the imports to be reliably quantified based on publicly available data.
Accordingly, the data do not show whether imports from the PRC meet the
statutory requirements for negligibility. However, Petitioners allege
and provide supporting evidence that (1) there is a reasonable
indication that data obtained in the ITC's investigation will establish
that imports exceed the negligibility threshold,\32\ and (2) there is
the potential that imports from the PRC will imminently exceed the
negligibility threshold. Petitioners' arguments regarding the
limitations of publicly available import data and the collection of
scope-specific import data in the ITC's investigation are consistent
with the SAA. Furthermore, Petitioners' arguments regarding the
potential for imports from the PRC to imminently exceed the
negligibility threshold are consistent with the statutory criteria for
``negligibility in threat analysis'' under section 771(24)(A)(iv) of
the Act, which provides that imports shall not be treated as negligible
if there is a potential that subject imports from a country will
imminently exceed the statutory requirements for negligibility.
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\32\ See Statement of Administrative Action (SAA), H.R. Doc. No.
103-316, Vol. 1, (1994), at 857; see also Volume I of the Petitions,
at I-29--I-34 and Exhibits I-17--I-21.
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Petitioners contend that the industry's injured condition is
illustrated by reduced market share; decline in shipments, production,
and capacity utilization; underselling and price suppression or
depression; reduced employment variables; lost sales and revenues; and
decline in financial performance.\33\ We have assessed the allegations
and supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation.\34\
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\33\ See Volume I of the Petitions, at I-18--I-22, I-24--I-61
and Exhibits I-14, I-15, I-17--I-37; see also General Issues
Supplement, at 1-3 and Exhibits I-SQ-1 and I-SQ-4.
\34\ See India AD Initiation Checklist and PRC AD Initiation
Checklist, at Attachment III, Analysis of Allegations and Evidence
of Material Injury and Causation for the Antidumping and
Countervailing Duty Petitions Covering Certain New Pneumatic Off-
the-Road Tires from India, the People's Republic of China, and Sri
Lanka.
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Allegations of Sales at Less-Than-Fair-Value
The following is a description of the allegations of sales at less-
than-fair-value upon which the Department based its decision to
initiate investigations of imports of off road tires from India and the
PRC. The sources of data for the deductions and adjustments relating to
U.S. price and NV are discussed in greater detail in the country-
specific initiation checklists.
Export Price
India
For India, Petitioners based U.S. prices on price quotes to
customers in the United States for off road tires
[[Page 7077]]
produced in, and exported from, India by both Alliance Tire Group and
Balkrishna Industries Limited (BKT).\35\ Petitioners made deductions
from U.S. price for movement expenses.\36\ Petitioners also deducted
from U.S. price brokerage and handling expenses.\37\
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\35\ See India AD Initiation Checklist; see also Volume IV of
the Petitions, at IV-2; and First India Supplemental Response at IV-
SQ-1 and Exhibit IV-SQ-1.
\36\ See India AD Initiation Checklist; see also Volume IV of
the Petitions, at IV-2 and IV-3 and Exhibit IV-3; and First India
Supplemental Response at Exhibit IV-SQ-2.
\37\ See India AD Initiation Checklist; see also Volume IV of
the Petitions, at IV-3 and Exhibit IV-4; and First India
Supplemental Response at IV-SQ-1 and Exhibit IV-SQ-3.
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PRC
Petitioners based U.S. price on an export price (EP) derived from
import data for wheel and tire assemblies (i.e., tires mounted on
wheels) of farm wagons and carts classified under Harmonized Tariff
Schedule sub-heading 8716.9010.20 as obtained from the ITC's Trade
DataWeb.\38\ Because these data were for wheel and tire assemblies, in
order to derive a comparison U.S. price for tires only, Petitioners
selected four Titan (i.e., one of the petitioning entities) models of
tires sold in assembilies that are most similar to those PRC tires that
were imported as part of assemblies under HTS 8716.9010.20. Using
Titan's actual sales of these assemblies during the POI, Petitioners
calculated ratios for both the portion of weight attributable to the
tires and the portion of the per-kilogram price attributable to tires
in these four assemblies.\39\ After deducting unrebated export tax and
foreign brokerage and handling from the HTS 8716.9010.20 import data to
determine the EP for assembilies,\40\ Petitioners applied the
calculated ratios to the adjusted U.S. price for assemblies in order to
derive a comparison U.S. price for tires only.\41\
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\38\ See Volume II of the Petitions, at II-2 through II-4,
Exhibits II-2, II-2(A), II-2(C); PRC Supplemental Response at 3,
Exhibits II-SQ-9, and II-SQ-10.
\39\ See PRC Supplemental Response at 2, Exhibits II-SQ-3 and
II-SQ-4.
\40\ Petitioners stated they conservatively did not include an
adjustment for inland freight from the factory to the port because
information regarding the location of the companies exporting the
farm wagon and cart wheel and tire assemblies was not reasonably
available.
\41\ See Volume II of the Petitions Exhibit II-2.
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In addition, Petitioners obtained 13 free-on-board (FOB) PRC prices
from publicly-available internet sources of certain subject wheel and
tire assemblies.\42\ Similarly, Petitioners matched each product in the
internet price quotes with Titan assembly sales that included a tire
that was closest in size to the model in the internet price quote and
calculated ratios for price and weight attributable to tires based on
Titan's assembly sales.\43\ After deducting unrebated export tax,
foreign brokerage and handling, and inland freight from the factory to
the port of export,\44\ Petitioners applied the calculated ratios to
the adjusted price quotes of assemblies in order to derive comparison
U.S. prices for tires only.\45\
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\42\ Id., at II-4, Exhibits II-1, II-2, II-2(G).
\43\ Id., at II-4, Exhibits II-1, II-2, II-2(B), II-2(G); PRC
Supplemental Response at 2, Exhibits II-SQ-3, II-SQ-4, II-SQ-11.
\44\ See Volume II of the Petitions at Exhibit II-2, II-2(H),
II-9(J), B), II-2(F), II-9(G), II-9(H); PRC Supplemental Response at
4, Exhibits II-SQ-7, II-SQ-8.
\45\ See Volume II of the Petitions at Exhibits II-2, II-2(B),
II-2(D), PRC Supplemental Response at 2, Exhibits II-SQ-3, II-SQ-4,
II-SQ-11.
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Petitioners valued foreign brokerage and handling and foreign
inland truck freight based on data reported in the Doing Business 2016:
Thailand.[hairsp]\46\ The Department corrected for a conversion error
in the calculation of per kilogram per kilometer truck freight as
submitted by Petitioners.\47\
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\46\ See Volume II of the Petitions at Exhibit II-9, II-9(G),
II-9(H), PRC Supplemental Response at 4, Exhibits II-SQ-7 and II-SQ-
8.
\47\ See PRC AD Checklist.
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Normal Value
India
For India, Petitioners asserted that they were unable to obtain
pricing data for off road tires sold in the home or third country
markets.\48\ Consequently, pursuant to section 773(a)(4) of the Act,
Petitioners relied on constructed value (CV) as the basis for NV.\49\
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\48\ See Volume IV of the Petitions, at IV-4 and First India
Supplement Responseat IV-SQ-2 and IV-SQ-3.
\49\ In accordance with section 505(a) of the Trade Preferences
Extension Act of 2015, amending section 773(b)(2) of the Act, for
the India investigation, the Department will request information
necessary to calculate the CV and cost of production (COP) to
determine whether there are reasonable grounds to believe or suspect
that sales of the foreign like product have been made at prices that
represent less than the COP of the product. The Department no longer
requires a COP allegation to conduct this analysis.
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Normal Value Based on Constructed Value
Pursuant to section 773(e) of the Act, CV consists of the cost of
manufacturing (COM); selling, general, and administrative (SG&A)
expenses; financial expenses; packing expenses, and profit. Petitioners
calculated COM based on a U.S. producer's experience adjusted for known
differences between the industry in the United States and the industry
in India during the proposed POI.\50\ Using publicly available data to
account for price differences, Petitioners multiplied the U.S.
producer's usage quantities by the submitted value of the inputs used
to manufacture off road tires in India.\51\ The U.S. producer's labor
cost was adjusted to reflect the experience of BKT, an Indian producer
of off road tires, based on BKT's March 31, 2015 audited financial
statements. To determine fixed overhead (including energy and packing
material costs), SG&A, financial expenses, and profit, Petitioners
again relied on BKT's March 31, 2015, financial statements.\52\
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\50\ See India AD Initiation Checklist.
\51\ Id.
\52\ Id.
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PRC
With respect to the PRC, Petitioners stated that the Department has
found the PRC to be a non-market economy (NME) country in every
administrative proceeding in which the PRC has been involved.\53\ In
accordance with section 771(18)(C)(i) of the Act, the presumption of
NME status remains in effect until revoked by the Department. The
presumption of NME status for the PRC has not been revoked by the
Department and, therefore, remains in effect for purposes of the
initiation of this investigation. Accordingly, the NV of the product is
appropriately based on factors of production (FOPs) valued in a
surrogate market economy country, in accordance with section 773(c) of
the Act. In the course of this investigation, all parties, and the
public, will have the opportunity to provide relevant information
related to the issues of the PRC's NME status and the granting of
separate rates to individual exporters.
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\53\ See Volume II of the Petitions, at 5.
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Petitioners claim that Thailand is an appropriate surrogate country
because it is a market economy that is at a level of economic
development comparable to that of the PRC and it is a significant
producer of the merchandise under consideration.\54\
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\54\ Id., at 6.
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Based on the information provided by Petitioners, we believe it is
appropriate to use Thailand as a surrogate country for initiation
purposes. Interested parties will have the opportunity to submit
comments regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
[[Page 7078]]
Factors of Production
Petitioners based the FOPs for materials and labor on Titan's
consumption rates for producing off road tires.\55\ Petitioners note
that Titan's production process is comparable to that of producers of
mounted off road tires in the PRC.\56\ Petitioners valued the estimated
factors of production using surrogate values from Thailand.\57\
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\55\ See Volume II of the Petitions, at II-9, Exhibits II-2(C)
and II-2(D), PRC Supplemental Response at 2, Exhibits II-SQ-12
through II-SQ-14.
\56\ See PRC Supplemental Response at 1 and Exhibit II-SQ-1.
\57\ See Volume II of the Petitions at II-5 through II-7.
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Valuation of Raw Materials
For direct materials, Petitioners valued certain rubber components
based on the daily prices of natural rubber published by the Rubber
Research Institute of Thailand from July 1, 2015, to December 31, 2015
and other inputs based on publicly-available data for Thai imports
obtained from the Global Trade Atlas (GTA) for the period covering June
2015 through November 2015, the most POI-contemporaneous data available
at the time the Petition was filed.\58\ Petitioners excluded all import
values from countries previously determined by the Department to
maintain broadly available, non-industry-specific export subsidies and
from countries previously determined by the Department to be NME
countries. In addition, in accordance with the Department's practice,
the average import value excludes imports that were labeled as
originating from an unidentified country. The Department determines
that the surrogate values used by Petitioners are reasonably available
and, thus, are acceptable for purposes of initiation.
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\58\ Per the Department's instruction, Petitioners used the
surrogate values using the GTA trade data for the most recent six-
month period (i.e., June-November 2015) because the trade data for
December 2015 is not available; see PRC Supplemental Response at 3,
Exhibits II-SQ-6.
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Valuation of Labor
Petitioners valued labor using quarterly Thai labor data published
by Thailand's National Statistics Office (NSO).\59\ Specifically,
Petitioners relied on data pertaining to wages and benefits earned by
Thai workers engaged in the manufacturing sector of the Thai economy.
Petitioners converted the wage rates to hourly and converted to U.S.
Dollars using the average exchange rate during the POI.
---------------------------------------------------------------------------
\59\ See Volume II of the Petitions at Exhibit II-9(F).
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Valuation of Energy, Factory Overhead, Selling, General and
Administrative Expenses (SG&A), and Profit
Petitioners calculated surrogate financial ratios (i.e., factory
overhead (including energy), SG&A expenses, and profit) using the
audited financial statements of S. R. Tyres Co., Ltd., Hihero Co.,
Ltd., and Hwa Fong Rubber, as used in the 2013-2014 administrative
review of the existing antidumping order on new pneumatic off-the-road
tires from the PRC.\60\
---------------------------------------------------------------------------
\60\ Id., at Exhibits II-9(L).
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Fair Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe that imports of off road tires from India and the PRC are
being, or are likely to be, sold in the United States at less-than-
fair-value. Based on comparisons of EP to CV in accordance with
sections 772 and 773 of the Act, the estimated dumping margins for off
road tires from India range from 10.77 to 76.45 percent.\61\ Based on
comparisons of EP to NV, in accordance with section 773(c) of the Act,
the estimated dumping margins for off road tires from the PRC range
from 11.20 to 77.69 percent.\62\
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\61\ See India AD Initiation Checklist.
\62\ See PRC AD Initiation Checklist.
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Initiation of Less-Than-Fair-Value Investigations
Based upon the examination of the AD Petitions on off road tires
from India and the PRC, we find that the Petitions meet the
requirements of section 732 of the Act. Therefore, we are initiating AD
investigations to determine whether imports of off road tires from
India and the PRC are being, or are likely to be, sold in the United
States at less-than-fair value. In accordance with section 733(b)(1)(A)
of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determinations no later than 140 days after the date of
this initiation.
On June 29, 2015, the President of the United States signed into
law the Trade Preferences Extension Act of 2015, which made numerous
amendments to the AD and CVD law.\63\ The 2015 law does not specify
dates of application for those amendments. On August 6, 2015, the
Department published an interpretative rule, in which it announced the
applicability dates for each amendment to the Act, except for
amendments contained in section 771(7) of the Act, which relate to
determinations of material injury by the ITC.\64\ The amendments to
sections 771(15), 773, 776, and 782 of the Act are applicable to all
determinations made on or after August 6, 2015, and, therefore, apply
to these AD investigations.\65\
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\63\ See Trade Preferences Extension Act of 2015, Pub. L. 114-
27, 129 Stat. 362 (2015).
\64\ See Dates of Application of Amendments to the Antidumping
and Countervailing Duty Laws Made by the Trade Preferences Extension
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice).
\65\ Id., at 46794-95. The 2015 amendments may be found at
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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Respondent Selection
Petitioners named six companies from India as producers/exporters
of subject off road tires.\66\ Following standard practice in AD
investigations involving market economy countries, for the India AD
case, the Department intends to select respondents based on U.S.
Customs and Border Protection (CBP) data for U.S. imports under the
appropriate Harmonized Tariff Schedule of the United States (``HTSUS'')
numbers listed in the ``Scope of the Investigation'' section above. We
intend to release the CBP data under Administrative Protective Order
(APO) to all parties with access to information protected by APO within
five business days of publication of this Federal Register notice.
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\66\ See Volume I of the Petitions, at Exhibit I-13.
---------------------------------------------------------------------------
Interested parties wishing to comment regarding the CBP data and/or
respondent selection for India must do so within seven calendar days
after the placement of the CBP data on the record of this
investigation. Parties wishing to submit rebuttal comments should
submit those comments five calendar days after the deadline for the
initial comments. An electronically-filed document must be received
successfully in its entirety by the Department's electronic records
system, ACCESS, by 5:00 p.m. ET by the date noted above. We intend to
make our decision regarding respondent selection within 20 days of
publication of this notice.
With respect to the PRC, Petitioners named 124 companies as
producers/exporters of off road tires.\67\ In accordance with our
standard practice for respondent selection in cases involving NME
countries, we intend to issue quantity and value (Q&V) questionnaires
to producers/exporters of merchandise subject to this investigation
\68\ and base respondent selection on the responses received,
[[Page 7079]]
ensuring that potential overlap with products covered by the existing
AD and CVD orders is eliminated. In addition, the Department will post
the Q&V questionnaire along with filing instructions on the Enforcement
and Compliance Web site at http://www.trade.gov/enforcement/news.asp.
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\67\ See Volume I of the Petition at I-15 and Exhibit I-12; see
also PRC Supplemental Response at 2 and Exhibit II-SQ-2.
\68\ See Appendix I, ``Scope of the Investigations'', which for
the PRC, excludes products covered by the existing antidumping and
countervailing duty orders on Certain New Pneumatic Off-the-Road
Tires from the People's Republic of China.
---------------------------------------------------------------------------
Exporters/producers of off road tires from the PRC that do not
receive Q&V questionnaires by mail may still submit a response to the
Q&V questionnaire and can obtain a copy from the Enforcement and
Compliance Web site. The Department will establish an exact deadline by
which Q&V responses must be submitted in the questionnaire itself, as
subsequently released to potential respondents and posted to the
Enforcement and Compliance Web site. All Q&V responses must be filed
electronically via ACCESS.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\69\
The specific requirements for submitting a separate-rate application in
the PRC investigation are outlined in detail in the application itself,
which is available on the Department's Web site at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate
application will be due 30 days after publication of this initiation
notice.\70\ Exporters and producers who submit a separate-rate
application and have been selected as mandatory respondents will be
eligible for consideration for separate-rate status only if they
respond to all parts of the Department's AD questionnaire as mandatory
respondents. The Department requires that respondents from the PRC
submit a response to both the Q&V questionnaire and the separate-rate
application by their respective deadlines in order to receive
consideration for separate-rate status.
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\69\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005), available at
http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
\70\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in an NME
investigation. The Separate Rates and Combination Rates Bulletin
states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME Investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is
referred to as the application of ``combination rates'' because such
rates apply to specific combinations of exporters and one or more
producers. The cash-deposit rate assigned to an exporter will apply
only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\71\
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\71\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of India and the PRC via ACCESS. To the
extent practicable, we will attempt to provide a copy of the public
version of the Petitions to each exporter named in the Petitions, as
provided under 19 CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of off road tires from India and the PRC are
materially injuring or threatening material injury to a U.S.
industry.\72\ A negative ITC determination for any country will result
in the investigation being terminated with respect to that country;
\73\ otherwise, these investigations will proceed according to
statutory and regulatory time limits.
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\72\ See section 733(a) of the Act.
\73\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by the Department; and (v) evidence other than
factual information described in (i)-(iv). Any party, when submitting
factual information, must specify under which subsection of 19 CFR
351.102(b)(21) the information is being submitted \74\ and, if the
information is submitted to rebut, clarify, or correct factual
information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct.\75\ Time limits for
the submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Please review the regulations prior to
submitting factual information in these investigations.
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\74\ See 19 CFR 351.301(b).
\75\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351 expires. For submissions that
are due from multiple parties simultaneously, an extension request will
be considered untimely if it is filed after 10:00 a.m. ET on the due
date. Under certain circumstances, we may elect to specify a different
time limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in the letter or memorandum setting
forth the deadline (including a specified time) by which extension
requests must be filed to be considered timely. An extension request
must be made in a separate, stand-alone submission; under limited
circumstances we will grant untimely-filed requests for the extension
of time limits. Review Extension of Time Limits; Final Rule, 78 FR
57790 (September 20, 2013), available at http:// www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual
information in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\76\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials, as
[[Page 7080]]
well as their representatives. Investigations initiated on the basis of
petitions filed on or after August 16, 2013, and other segments of any
AD or CVD proceedings initiated on or after August 16, 2013, should use
the formats for the revised certifications provided at the end of the
Final Rule.\77\ The Department intends to reject factual submissions if
the submitting party does not comply with applicable revised
certification requirements.
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\76\ See section 782(b) of the Act.
\77\ See Certification of Factual Information to Import
Administration during Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
administrative protective order (APO) in accordance with 19 CFR
351.305. On January 22, 2008, the Department published Antidumping and
Countervailing Duty Proceedings: Documents Submission Procedures; APO
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to
participate in these investigations should ensure that they meet the
requirements of these procedures (e.g., the filing of letters of
appearance as discussed in 19 CFR 351.103(d)).
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: February 3, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigations
The scope of these investigations is certain new pneumatic off-
the-road tires (certain off road tires). Certain off road tires are
tires with an off road tire size designation. The tires included in
the scope may be either tube-type \78\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers
or the replacement market.
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\78\ While tube-type tires are subject to the scope of these
proceedings, tubes and flaps are not subject merchandise and
therefore are not covered by the scope of these proceedings,
regardless of the manner in which they are sold (e.g., sold with or
separately from subject merchandise).
---------------------------------------------------------------------------
Subject tires may have the following prefix or suffix
designation, which appears on the sidewall of the tire:
Prefix designations:
DH--Identifies a tire intended for agricultural and logging
service which must be mounted on a DH drop center rim.
VA--Identifies a tire intended for agricultural and logging
service which must be mounted on a VA multipiece rim.
IF--Identifies an agricultural tire to operate at 20 percent
higher rated load than standard metric tires at the same inflation
pressure.
VF--Identifies an agricultural tire to operate at 40 percent
higher rated load than standard metric tires at the same inflation
pressure.
Suffix designations:
ML--Mining and logging tires used in intermittent highway
service.
DT--Tires primarily designed for sand and paver service.
NHS--Not for Highway Service.
TG--Tractor Grader, off-the-road tire for use on rims having
bead seats with nominal +0.188'' diameter (not for highway service).
K--Compactor tire for use on 5[deg] drop center or semi-drop
center rims having bead seats with nominal minus 0.032 diameter.
IND--Drive wheel tractor tire used in industrial service.
SL--Service limited to agricultural usage.
FI--Implement tire for agricultural towed highway service.
CFO--Cyclic Field Operation.
SS--Differentiates tires for off-highway vehicles such as mini
and skid-steer loaders from other tires which use similar size
designations such as 7.00-15TR and 7.00-15NHS, but may use different
rim bead seat configurations.
All tires marked with any of the prefixes or suffixes listed
above in their sidewall markings are covered by the scope regardless
of their intended use.
In addition, all tires that lack any of the prefixes or suffixes
listed above in their sidewall markings are included in the scope,
regardless of their intended use, as long as the tire is of a size
that is among the numerical size designations listed in the
following sections of the Tire and Rim Association Year Book, as
updated annually, unless the tire falls within one of the specific
exclusions set forth below. The sections of the Tire and Rim
Association Year Book listing numerical size designations of covered
certain off road tires include:
The table of mining and logging tires included in the section on
Truck-Bus tires;
The entire section on Off-the-Road tires;
The entire section on Agricultural tires; and
The following tables in the section on Industrial/ATV/Special
Trailer tires:
Industrial, Mining, Counterbalanced Lift Truck (Smooth
Floors Only);
Industrial and Mining (Other than Smooth Floors);
Construction Equipment;
Off-the-Road and Counterbalanced Lift Truck (Smooth
Floors Only);
Aerial Lift and Mobile Crane; and
Utility Vehicle and Lawn and Garden Tractor.
Certain off road tires, whether or not mounted on wheels or
rims, are included in the scope. However, if a subject tire is
imported mounted on a wheel or rim, only the tire is covered by the
scope. Subject merchandise includes certain off road tires produced
in the subject countries whether mounted on wheels or rims in a
subject country or in a third country. Certain off road tires are
covered whether or not they are accompanied by other parts, e.g., a
wheel, rim, axle parts, bolts, nuts, etc. Certain off road tires
that enter attached to a vehicle are not covered by the scope.
Excluded from the scope of these investigations are any products
covered by the existing antidumping and countervailing duty orders
on Certain New Pneumatic Off-the-Road Tires from the People's
Republic of China. See Certain New Pneumatic Off-the-Road Tires From
the People's Republic of China: Notice of Amended Final Affirmative
Determination of Sales at Less Than Fair Value and Antidumping Duty
Order, 73 FR 51624 (September 4, 2008); Certain New Pneumatic Off-
the-Road Tires From the People's Republic of China: Countervailing
Duty Order, 73 FR 51627 (September 4, 2008).\79\
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\79\ In these prior investigations, the Department found that
imports of off road tires mounted on wheels were not within the
scope of subject merchandise. See Certain New Pneumatic Off-The-Road
Tires from the People's Republic of China: Final Affirmative
Determination of Sales at Less Than Fair Value and Partial
Affirmative Determination of Critical Circumstances, 73 FR 40485
(July 15, 2008) and accompanying Issues and Decision Memorandum at
Comment 19.
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In addition, specifically excluded from the scope are passenger
vehicle and light truck tires, racing tires, mobile home tires,
motorcycle tires, all-terrain vehicle tires, bicycle tires, on-road
or on-highway trailer tires, and truck and bus tires. Such tires
generally have in common that the symbol ``DOT'' must appear on the
sidewall, certifying that the tire conforms to applicable motor
vehicle safety standards. Such excluded tires may also have the
following prefixes and suffixes included as part of the size
designation on their sidewalls:
Prefix letter designations:
AT--Identifies a tire intended for service on All-Terrain
Vehicles;
P--Identifies a tire intended primarily for service on passenger
cars;
LT--Identifies a tire intended primarily for service on light
trucks;
T--Identifies a tire intended for one-position ``temporary use''
as a spare only; and
ST--Identifies a special tire for trailers in highway service.
Suffix letter designations:
TR--Identifies a tire for service on trucks, buses, and other
vehicles with rims having specified rim diameter of nominal plus
0.156'' or plus 0.250'' ;
MH--Identifies tires for Mobile Homes;
HC--Identifies a heavy duty tire designated for use on ``HC''
15'' tapered rims used on trucks, buses, and other vehicles. This
suffix is intended to differentiate among tires for light trucks,
and other vehicles or other services, which use a similar
designation.
Example: 8R17.5 LT, 8R17.5 HC.
LT--Identifies light truck tires for service on trucks, buses,
trailers, and multipurpose passenger vehicles used in nominal
highway service;
ST--Special tires for trailers in highway service; and
M/C--Identifies tires and rims for motorcycles.
The following types of tires are also excluded from the scope:
Pneumatic tires that are not new, including recycled or retreaded
tires and used tires; non-pneumatic tires, including solid rubber
tires; aircraft
[[Page 7081]]
tires; and turf, lawn and garden, and golf tires. Also excluded from
the scope are mining and construction tires that have a rim diameter
equal to or exceeding 39 inches. Such tires may be distinguished
from other tires of similar size by the number of plies that the
construction and mining tires contain (minimum of 16) and the weight
of such tires (minimum 1500 pounds).
The subject merchandise is currently classifiable under
Harmonized Tariff Schedule of the United States (HTSUS) subheadings:
4011.20.1025, 4011.20.1035, 4011.20.5030, 4011.20.5050,
4011.61.0000, 4011.62.0000, 4011.63.0000, 4011.69.0050,
4011.92.0000, 4011.93.4000, 4011.93.8000, 4011.94.4000,
4011.94.8000, 8431.49.9038, 8431.49.9090, 8709.90.0020, and
8716.90.1020. Tires meeting the scope description may also enter
under the following HTSUS subheadings: 4011.99.4550, 4011.99.8550,
8424.90.9080, 8431.20.0000, 8431.39.0010, 8431.49.1090,
8431.49.9030, 8432.90.0005, 8432.90.0015, 8432.90.0030,
8432.90.0080, 8433.90.5010, 8503.00.9560, 8708.70.0500,
8708.70.2500, 8708.70.4530, 8716.90.5035 and 8716.90.5055. While
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the subject merchandise is dispositive.
[FR Doc. 2016-02701 Filed 2-9-16; 8:45 am]
BILLING CODE 3510-DS-P