Passenger Vehicle and Light Truck Tires From the People's Republic of China: Preliminary Rescission of 2014-2016 Countervailing Duty New Shipper Review

Ronald K. Lorentzen
Department of Commerce
31 January 2017

[Federal Register Volume 82, Number 19 (Tuesday, January 31, 2017)]
[Notices]
[Pages 8825-8826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01997]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-017]


Passenger Vehicle and Light Truck Tires From the People's 
Republic of China: Preliminary Rescission of 2014-2016 Countervailing 
Duty New Shipper Review

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The U.S. Department of Commerce (the Department) is conducting 
a new shipper review (NSR) of the countervailing duty (CVD) order on 
passenger vehicle and light truck tires (passenger tires) from the 
People's Republic of China (the PRC). The NSR covers one exporter/
producer of subject merchandise, Shandong Xinghongyuan Tire Co., Ltd. 
(SXT). The period of review (POR) is December 1, 2014, through January 
31, 2016. The Department preliminarily determines that SXT did not 
satisfy the regulatory requirements to request an NSR, and, therefore, 
we are preliminarily rescinding this NSR. Interested parties are 
invited to comment on the preliminary results of this review.

DATES: Effective January 31, 2017.

FOR FURTHER INFORMATION CONTACT: Kaitlin Wojnar, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-3857.

SUPPLEMENTARY INFORMATION: 

Background

    On June 6, 2016, the Department published notice of initiation of 
an NSR of passenger tires from the PRC for the period December 1, 2014, 
through January 31, 2016.\1\ On October 27, 2016, the Department 
extended the deadline for the preliminary results to January 23, 
2017.\2\
---------------------------------------------------------------------------

    \1\ See Passenger Vehicle and Light Truck Tires from the 
People's Republic of China: Initiation of Countervailing Duty New 
Shipper Review; 2014-2016, 81 FR 36262 (June 6, 2016).
    \2\ See Department Memorandum, ``Passenger Vehicle and Light 
Truck Tires from the People's Republic of China: Extension of 
Deadline for Preliminary Results in Countervailing Duty New Shipper 
Review,'' October 27, 2016.
---------------------------------------------------------------------------

Scope of the Order

    The product covered by this order is passenger tires from the PRC. 
For a complete description of the scope, see the Appendix to this 
notice.
    On June 3, 2016, American Omni Trading Company, LLC (American Omni) 
and Unicorn Tire Corporation (Unicorn Tire) requested clarification of 
a prior ruling regarding the scope of the order.\3\ The Department 
issued a preliminary clarification on October 20, 2016,\4\ and 
subsequently received comments in support of the clarification from 
American Omni and Unicorn Tire.\5\ Accordingly, the Department 
finalized the clarification, with no modifications, on November 29, 
2016.\6\
---------------------------------------------------------------------------

    \3\ See Department Memorandum, ``Countervailing Duty New Shipper 
Review of Passenger Vehicle and Light Truck Tires from the People's 
Republic of China: Placing Scope Ruling Request on the Record,'' 
August 2, 2016, at Attachment.
    \4\ See Department Memorandum, ``Antidumping Duty New Shipper 
Review of Passenger Vehicle and Light Truck Tires from the People's 
Republic of China: Preliminary Clarification of Scope Ruling,'' 
October 20, 2016.
    \5\ See Letter from American Omni and Unicorn Tire, ``Passenger 
Vehicle and Light Truck Tires from the People's Republic of China: 
Comments on Preliminary Clarification of Scope Ruling,'' October 27, 
2016.
    \6\ See Department Memorandum, ``Antidumping Duty New Shipper 
Review of Passenger Vehicle and Light Truck Tires from the People's 
Republic of China: Final Clarification of Scope Ruling,'' November 
29, 2016.
---------------------------------------------------------------------------

Methodology

    The Department is conducting this review in accordance with section 
751(a)(2)(B) of the Act and 19 CFR 351.214. For a full description of 
the

[[Page 8826]]

methodology underlying our conclusions, see the Preliminary Decision 
Memorandum, which is hereby adopted by this notice.\7\ The Preliminary 
Decision Memorandum is a public document that is available 
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 
in the Central Records Unit, Room B8024, of the Department's main 
building. A complete version of the Preliminary Decision Memorandum can 
also be accessed at http://enforcement.trade.gov/frn/. The signed 
Preliminary Decision Memorandum and the electronic version of the 
Preliminary Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \7\ See Department Memorandum, ``Passenger Vehicle and Light 
Truck Tires from the People's Republic of China: Preliminary 
Rescission of Countervailing Duty New Shipper Review,'' January 23, 
2017 (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Preliminary Rescission of the Countervailing Duty New Shipper Review

    The Department preliminarily finds that, based on substantial 
evidence on the record, SXT has not satisfied the statutory and 
regulatory requirements to request an NSR. Specifically, the Department 
finds that SXT's request for an NSR was based on the inaccurately 
certified statement that SXT is not affiliated with any PRC exporter or 
producer that exported subject merchandise to the United States during 
the period of time examined in the original CVD investigation (i.e., 
January 1, 2013, through December 31, 2013).\8\ Further analysis of 
SXT's corporate affiliations and the factual information underlying 
this preliminary rescission is provided in the Preliminary Decision 
Memorandum.
---------------------------------------------------------------------------

    \8\ See Countervailing Duty Investigation of Certain Passenger 
Vehicle and Light Truck Tires from the People's Republic of China: 
Final Affirmative Determination, and Final Affirmative Critical 
Circumstances Determination, in Part, 80 FR 34888, 34888 (June 18, 
2015); see also Letter from SXT, ``Certain Passenger Vehicle and 
Light Truck Tires from the People's Republic of China: New Shipper 
Review Request,'' February 25, 2016, at Exhibit 2 (certifying that 
``since the investigation was initiated, {SXT{time}  has never been 
affiliated with any exporter or producer who exported the subject 
merchandise to the United States during the period of investigation 
including those not individually examined during the 
investigation'').
---------------------------------------------------------------------------

Public Comment

    Interested parties may submit case briefs or other written comments 
no later than 30 days after the publication of these preliminary 
results in the Federal Register.\9\ Rebuttal briefs, limited to issues 
raised in the case briefs, may be submitted no later than five days 
after the deadline for case briefs.\10\
---------------------------------------------------------------------------

    \9\ See 19 CFR 351.309(c)(1)(i).
    \10\ See 19 CFR 351.309(d)(1).
---------------------------------------------------------------------------

    Interested parties who wish to request a hearing must submit a 
written request within 30 days of the publication of these preliminary 
results in the Federal Register.\11\ Such requests should contain the 
party's name, address, and telephone number, as well as the number of 
participants and a list of the issues to be discussed. Oral arguments 
will be limited to issues raised in the case and rebuttal briefs. If a 
request for a hearing is made, the Department intends to hold the 
hearing at the U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230, at a date, time, and location to be 
determined. Parties will be notified of the date, time, and location of 
any hearing.
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.310(c).
---------------------------------------------------------------------------

    Parties must file their case briefs and rebuttal briefs, as well as 
any requests for a hearing, electronically, using ACCESS. 
Electronically filed documents must be successfully received in their 
entirety via ACCESS no later than 5:00 p.m. Eastern Time on the 
abovementioned deadlines.\12\
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.303(b)(1).
---------------------------------------------------------------------------

    The Department intends to issue the final results of this NSR, 
which will include an analysis of any issues raised in briefs, no more 
than 90 days after the release of these preliminary results, pursuant 
to section 751(a)(2)(B) of the Act.

Assessment Rates

    If the Department proceeds to a final rescission of SXT's NSR, the 
assessment rate to which SXT's shipments will be subject will not be 
affected by this review. The Department, however, initiated an 
administrative review of the CVD order on passenger tires from the PRC 
covering numerous exporters for the period of December 1, 2014, through 
December 31, 2015, which encompasses the period covered by this 
NSR.\13\ Therefore, if the Department proceeds to a final rescission, 
we will instruct U.S. Customs and Border Protection (CBP) to continue 
to suspend subject merchandise exported by SXT and entered into the 
United States during the period December 1, 2014, through January 31, 
2016, until CBP receives instructions relating to the abovementioned 
administrative review of this order.
---------------------------------------------------------------------------

    \13\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 81 FR 71061, 71065 (October 14, 2016) 
(Administrative Review Initiation Notice).
---------------------------------------------------------------------------

    If the Department does not proceed to a final rescission of this 
NSR, pursuant to 19 CFR 351.212(b)(1), we will calculate an importer-
specific assessment rate based on the final results of this review.

Cash Deposit Requirements

    Effective upon publication of the final rescission or the final 
results of this NSR, the Department will instruct CBP to collect cash 
deposits for entries of SXT's subject merchandise. If the Department 
proceeds to a final rescission of this NSR, the cash deposit rate for 
SXT will continue to be the all-others rate because the Department will 
not have determined an individual subsidy rate for SXT. If the 
Department issues final results for this NSR, the Department will 
instruct CBP to collect cash deposits, effective upon publication of 
the final results, at the rates established therein.

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of countervailing duties prior to 
liquidation of the relevant entries during this POR. Failure to comply 
with this requirement could result in the Department's presumption that 
reimbursement of countervailing duties occurred and the subsequent 
assessment of double countervailing duties.
    We are issuing and publishing these preliminary results in 
accordance with sections 751(a)(2)(B) and 771(i)(1) of the Act.

    Dated: January 23, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2017-01997 Filed 1-30-17; 8:45 am]
BILLING CODE 3510-DS-P