Certain New Pneumatic Off-the-Road Tires From India: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, in Part, and Alignment of Final Determination With Final Antidumping Determination |
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Paul Piquado
Department of Commerce
20 June 2016
[Federal Register Volume 81, Number 118 (Monday, June 20, 2016)]
[Notices]
[Pages 39903-39905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14537]
[[Page 39903]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-870]
Certain New Pneumatic Off-the-Road Tires From India: Preliminary
Affirmative Countervailing Duty Determination, Preliminary Affirmative
Critical Circumstances Determination, in Part, and Alignment of Final
Determination With Final Antidumping Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain new pneumatic off-the-road tires
(off road tires) from India. The period of investigation is January 1,
2015, through December 31, 2015. Interested parties are invited to
comment on this preliminary determination.
DATES: Effective Date: June 20, 2016.
FOR FURTHER INFORMATION CONTACT: Spencer Toubia, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230; telephone: (202) 482-0123.
Alignment of Final Countervailing Duty (CVD) Determination With Final
Antidumping Duty (AD) Determination
On the same day the Department initiated this CVD investigation,
the Department also initiated an AD investigation of off road tires
from India and a CVD investigation of off road tires from Sri
Lanka.1 2 This CVD, the India AD, and the Sri Lanka CVD
investigations cover the same merchandise.
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\1\ See Certain New Pneumatic Off-the-Road Tires From India, the
People's Republic of China, and Sri Lanka: Initiation of
Countervailing Duty Investigations, 81 FR 7067 (February 10, 2016)
(Initiation Notice). See also Certain New Pneumatic Off-the-Road
Tires From India and the People's Republic of China: Initiation of
Less Than-Fair-Value Investigations, 81 FR 7073 (February 10, 2016).
\2\ At this time, the Department also initiated AD and CVD
investigations of off road tires from the People's Republic of China
(PRC). However, on March 1, 2016, the U.S. International Trade
Commission (ITC) found that imports of off road tires from the PRC
were negligible and terminated the PRC AD and CVD investigations.
See Certain New Pneumatic Off-the-Road-Tires From China, India, and
Sri Lanka, 81 FR 10663 (March 1, 2016).
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On May 11, 2016, in accordance with section 705(a)(1) of the Tariff
Act of 1930, as amended (Act), Petitioners \3\ requested alignment of
the final CVD determinations of off road tires from India and Sri Lanka
with the final AD determination of off road tires from India.
Therefore, in accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), we are aligning the final CVD determinations with the
final India AD determination. Consequently, the final CVD
determinations will be issued on the same date as the final India AD
determination, which is currently scheduled to be issued no later than
October 25, 2016.
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\3\ Petitioners in this investigation are Titan Tire Corporation
and the United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers International Union,
AFL-CIO, CLC.
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Scope of the Investigation
The scope of the investigation covers off road tires, which are
tires with an off road tire size designation. For a complete
description of the scope of the investigation, see Appendix I.
Scope Comments
Certain interested parties commented on the scope of the
investigation as it appeared in the Initiation Notice. For discussion
of those comments, see the Preliminary Decision Memorandum.\4\
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\4\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Paul Piquado, Assistant Secretary for Enforcement and Compliance,
regarding ``Certain New Pneumatic Off-the-Road Tires from India:
Preliminary Affirmative Countervailing Duty Determination Decision
Memorandum,'' dated concurrently with this notice (Preliminary
Decision Memorandum).
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Methodology
The Department is conducting this CVD investigation in accordance
with section 701 of the Act. For each of the subsidy programs found
countervailable, we preliminarily determine that there is a subsidy
(i.e., a financial contribution by an ``authority'' that gives rise to
a benefit to the recipient) and that the subsidy is specific.\5\ For a
full description of the methodology underlying our preliminary
conclusions, see the Preliminary 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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The Preliminary Decision Memorandum is a public document and is on
file electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at http://access.trade.gov, and
is available to all parties in the Central Records Unit, Room B8024 of
the main Department of Commerce building. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/. The signed Preliminary Decision
Memorandum and the electronic version of the Preliminary Decision
Memorandum are identical in content.
Preliminary Determination of Critical Circumstances, in Part
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of off
road tires from India for all other exporters or producers not
individually examined. A discussion of our determination can be found
in the Preliminary Decision Memorandum.
Preliminary Determination and Suspension of Liquidation
In accordance with section 703(d)(1)(A)(i) of the Act, we
calculated a CVD rate for each individually-investigated producer/
exporter of the subject merchandise. We preliminarily determine that
countervailable subsidies are being provided with respect to the
manufacture, production, or exportation of the subject merchandise. In
accordance with sections 703(d) and 705(c)(5)(A) of the Act, for
companies not individually examined, we apply an ``all-others'' rate,
which is normally calculated by weighting the subsidy rates of the
individual companies as respondents by those companies' exports of the
subject merchandise to the United States. Under section 705(c)(5)(A)(i)
of the Act, the all-others rate should exclude zero and de minimis
rates or any rates based entirely on facts otherwise available pursuant
to section 776 of the Act. Neither of the mandatory respondents' rates
in this preliminary determination were zero or de minimis or based
entirely on facts otherwise available. Accordingly, in this preliminary
determination, we have calculated the ``all-others'' rate by weight
averaging the calculated subsidy rates of the two individually
investigated respondents. In order to ensure that business proprietary
information is not disclosed through the all-others rate, we have used
the respondent's publicly-ranged sales data for exports of subject
merchandise to the United States.\6\
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\6\ See Preliminary Decision Memorandum at ``CALCULATION OF THE
ALL-OTHERS RATE'' (for further explanation of the business
propretiary information concerns); see also Memorandum to the File,
``Countervailing Duty Investigation of Certain New Pneumatic Off-
the-Road Tires from India: Preliminary Determination Margin
Calculation for All-Others,'' dated concurrently with this
memorandum.
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[[Page 39904]]
We preliminarily determine the countervailable subsidy rates to be:
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Subsidy
Company rate
(percent)
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ATC Tires Private Limited................................... 7.64
Balkrishna Industries Limited \7\........................... 4.70
All-Others.................................................. 6.17
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In accordance with sections 703(d)(1)(B) and (2) of the Act, we are
directing U.S. Customs and Border Protection (CBP) to suspend
liquidation of all entries of off road tires from India that are
entered, or withdrawn from warehouse, for consumption on or after the
date of the publication of this notice in the Federal Register, and to
require a cash deposit for such entries of merchandise in the amounts
indicated above. Moreover, because we preliminarily find critical
circumstances exist with respect to all other exporters or producers
not individually examined, in accordance with section 703(e)(2)(A) of
the Act, we are directing CBP to apply the suspension of liquidation to
any unliquidated entries entered, or withdrawn from warehouse for
consumption by these companies, on or after the date which is 90 days
prior to the date of publication of this notice in the Federal
Register.
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\7\ The Department selected as its mandatory respondents in this
investigation ATC Tires Private Limited and Balkrishna Industries
Limited. See Department Memorandum, ``Countervailing Duty
Investigation of Certain New Pneumatic Off-the-Road Tires from
India: Respondent Selection,'' dated February 24, 2016 (Respondent
Selection Memorandum). On April 8, 2016, TVS Srichakra Ltd. (TVS)
submitted voluntary responses to our Initial Questionnaire. See
Letter from TVS, ``Countervailing Duty Investigation on Imports of
Certain New Pneumatic Off-the-Road Tires from India -Questionnaire
Response,'' dated April 8, 2016. On May 4, 2016, we determined that
we did not have the resources to select to select TVS as a voluntary
respondent because to do so would be unduly burdensome and would
inhibit the timely completion of this investigation. Therefore, we
have not analyzed any voluntary responses. See Department
Memorandum, ``Countervailing Duty Investigation of Certain New
Pneumatic Off-the- Road Tires from India: Selection of an Additional
Respondent,'' dated May 4, 2016.
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Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information submitted by the respondents prior to making our final
determination.
U.S. International Trade Commission
In accordance with section 703(f) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information relating to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order, without the written consent
of the Assistant Secretary for Enforcement and Compliance.
In accordance with section 705(b)(2) of the Act, if our final
determination is affirmative, the ITC will make its final determination
within 45 days after the Department makes its final determination.
Disclosure and Public Comment
The Department intends to disclose calculations performed for this
preliminary determination to the parties within five days of the date
of public announcement of this determination in accordance with 19 CFR
351.224(b). Case briefs or other written comments may be submitted to
the Assistant Secretary for Enforcement and Compliance no later than
seven days after the date on which the final verification report is
issued in this proceeding, and rebuttal briefs, limited to issues
raised in case briefs, may be submitted no later than five days after
the deadline date for case briefs.\8\ A table of contents, list of
authorities used, and an executive summary of issues should accompany
any briefs submitted to the Department, pursuant to 19 CFR
351.309(c)(2) and (d)(2). This summary should be limited to five pages
total, including footnotes.
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\8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, U.S. Department of Commerce,
filed electronically using ACCESS. An electronically-filed request must
be received successfully, and in its entirety, by ACCESS by 5:00 p.m.
Eastern Time, within 30 days after the date of publication of this
notice. Requests should contain the party's name, address, and
telephone number; the number of participants; and a list of the issues
to be discussed. If a request for a hearing is made, the Department
intends to hold the hearing at the U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, DC 20230, at a date,
time, and specific location to be determined. Parties will be notified
of the date, time, and location of any hearing. Parties should confirm
by telephone the date, time, and location of the hearing two days
before the scheduled date.
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: June 13, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation 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 \9\ or tubeless, radial, or non-
radial, regardless of whether for original equipment manufacturers
or the replacement market.
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\9\ While tube-type tires are subject to the scope of this
proceeding, tubes and flaps are not subject merchandise and
therefore are not covered by the scope of this proceeding,
regardless of the manner in which they are sold (e.g., sold with or
separately from subject merchandise).
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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.
[[Page 39905]]
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.
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 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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Critical Circumstances
VI. Injury Test
VII. Subsidies Valuation
VIII. Loan Benchmark and Interest Rates
IX. Analysis of Programs
X. Calculation of All-Others Rate
XI. ITC Notification
XII. Disclosure and Public Comment
XIII. Conclusion
[FR Doc. 2016-14537 Filed 6-17-16; 8:45 am]
BILLING CODE 3510-DS-P