Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review and Preliminary Rescission of New Shipper Review; 2015-2016 |
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Gary Taverman
Department of Commerce
10 October 2017
[Federal Register Volume 82, Number 194 (Tuesday, October 10, 2017)]
[Notices]
[Pages 46965-46968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21748]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-912]
Certain New Pneumatic Off-the-Road Tires From the People's
Republic of China: Preliminary Results of Antidumping Duty
Administrative Review and Preliminary Rescission of New Shipper Review;
2015-2016
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Department) is conducting an
administrative review (AR) and a new shipper review (NSR) of the
antidumping duty order on certain new pneumatic off-the-road tires (OTR
tires) from the People's Republic of China (PRC). The period of review
(POR) for the AR and NSR is September 1, 2015, through August 31, 2016.
The administrative review covers six exporters of the subject
merchandise. We preliminarily determine that Weihai Zhongwei Rubber
Co., Ltd. (Zhongwei), one of three companies selected for individual
examination, made sales of subject merchandise in the United States at
prices below normal value (NV) during the POR. We also preliminarily
determine to rescind the new shipper review initiated for Carlisle
(Meizhou) Rubber Manufacturing Co., Ltd. (Carlisle Meizhou), and CTP
Distribution (HK) Limited (CTP HK) (collectively, Carlstar). We invite
interested parties to comment on these preliminary results.
DATES: Effective October 10, 2017.
FOR FURTHER INFORMATION CONTACT: Alex Rosen, AD/CVD Operations, Office
III, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington,
DC 20230; telephone: (202) 482-7814.
SUPPLEMENTARY INFORMATION:
Background
On November 3, 2016, the Department initiated a new shipper review
of exports of subject merchandise made by CTP Distribution (HK) Limited
(CTP HK), produced in the PRC by Carlisle (Meizhou) Rubber
Manufacturing Co., Ltd. (Carlisle Meizhou).1 2 On November
9, 2016, the Department initiated the eighth administrative review of
the antidumping duty order on OTR tires from the PRC.\3\ On March 2,
2017, the
[[Page 46966]]
Department aligned the NSR with the AR.\4\ On April 4, 2017, the
Department rescinded the review for three exporters for which the AR
was initiated.\5\ On May 17, 2017, we extended the time limit for the
preliminary results of review by 120 days, pursuant to section
751(a)(3)(A) of the Tariff Act of 1930, as amended (the Act), to
October 2, 2017.\6\ For a complete description of the events that
followed the initiation of these reviews, see the Preliminary Decision
Memorandum.\7\ A list of topics included in the Preliminary Decision
Memorandum is included as an Appendix to this notice.
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\1\ The NSR was requested by Carlstar Group LLC (formerly dba
CTP Transportation Products) (Carlstar Group), a U.S. producer of
OTR tires, and an importer of subject merchandise concerning
merchandise produced by Carlisle Meizhou, its affiliated producer of
OTR tires from the PRC, and exported by CTP HK, an affiliated
trading company located in Hong Kong (collectively, Carlstar).
\2\ See letter from Carlstar, ``New Pneumatic Off-The-Road Tires
from the People's Republic of China Entry of Appearance and Request
for New Shipper Review,'' dated September 20, 2016 (NSR Request);
see also Initiation of Antidumping Duty New Shipper Review, 81 FR
76560 (November 3, 2016) (NSR Initiation).
\3\ See Initiation of Antidumping and Countervailing Duty
Administrative Review, 81 FR 78778 (November 9, 2016) (Initiation
Notice). The Department initiated on the following: Cheng Shin
Rubber Industry Ltd. (Chengshin), Guizhou Tyre Co., Ltd., Guizhou
Tyre Import and Export Co., Ltd. (GTC), Qingdao Milestone Tyres Co.
Ltd. (Milestone), Qingdao Qihang Tyre Co. Ltd. (Qihang), Shandong
Zhentai Group Co., Ltd. (Zhentai), Trelleborg Wheel Systems
(Xingtai) Co., Ltd. (TWS), Weihai Zhongwei Rubber Co., Ltd.
(Zhongwei), Weifang Jintongda Tyre Co., Ltd. (Jintongda), and
Zhongce Rubber Group Company Limited (Zhongce). The Department
previously collapsed GTC and Guizhou Tyre Import and Export
Corporation (GTCIE) into a single entity in the original
investigation, see Certain New Pneumatic Off-The-Road Tires from the
People's Republic of China; Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination, 73 FR
9278, 9283 (February 20, 2008), unchanged in 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). This decision is unchallenged in the instant
review; thus, the Department continues to treat GTC and GTCIE as a
single entity (collectively, GTC).
\4\ See memorandum to the file, ``Waiver of Time Limits for New
Shipper Review and Align with Concurrent Administrative Review,''
dated March 2, 2017 (Alignment Memo).
\5\ See Certain New Pneumatic Off-the-Road Tires from the
People's Republic of China: Notice of Partial Rescission of the
Antidumping Duty Administrative Review; 2015-2016, 82 FR 16348
(April 4, 2017).
\6\ See memorandum to Gary Taverman, Deputy Assistant Secretary
for Antidumping and Countervailing Duty Operations, ``Certain New
Pneumatic Off-the-Road Tires from the People's Republic of China:
Extension of Deadline for Preliminary Results of 2015-2016
Antidumping Duty Administrative Review and New Shipper Review,''
dated May 17, 2017.
\7\ See memorandum to Gary Taverman, Deputy Assistant Secretary
for Antidumping and Countervailing Duty Operations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance, ``Decision Memorandum for Preliminary
Results of Antidumping Duty Administrative Review and Preliminary
Rescission of New Shipper Review: Certain New Pneumatic Off-the-Road
Tires from the People's Republic of China; 2015-2016,'' dated
concurrently with and hereby adopted by this notice (Preliminary
Decision Memorandum).
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Scope of the Order \8\
The merchandise covered by this order includes new pneumatic tires
designed for off-the-road and off-highway use, subject to certain
exceptions. The subject merchandise is currently classifiable under
Harmonized Tariff Schedule of the United States (HTSUS) subheadings:
4011.20.10.25, 4011.20.10.35, 4011.20.50.30, 4011.20.50.50,
4011.61.00.00, 4011.62.00.00, 4011.63.00.00, 4011.69.00.00,
4011.92.00.00, 4011.93.40.00, 4011.93.80.00, 4011.94.40.00, and
4011.94.80.00. The HTSUS subheadings are provided for convenience and
customs purposes only; the written product description of the scope of
the order is dispositive.
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\8\ For a complete description of the scope of the order, see
the Preliminary Decision Memorandum.
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Preliminary Rescission of the New Shipper Review
In accordance with 19 CFR 351.214(c), an exporter or producer may
request a NSR within one year of the date on which subject merchandise
was first entered, or withdrawn from warehouse, for consumption, or, if
the exporter or producer cannot establish the date of the first entry,
then the date on which it first shipped the merchandise for export to
the United States.
As discussed in the Preliminary Decision Memorandum and Preliminary
NSR Rescission Memorandum,\9\ the Department preliminarily finds that
Carlstar's request for review was not timely filed within one year of
the date the subject merchandise produced and exported by Carlstar or
its predecessor was first entered into the United States, pursuant to
19 CFR 351.214(c) of the Department's regulations.
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\9\ See memorandum to the file, ``New Shipper Review of the
Antidumping Duty Order on New Pneumatic Off-The-Road Tires from the
People's Republic of China: Preliminary Rescission Memorandum for
Carlstar,'' dated concurrently with this memorandum (Preliminary NSR
Rescission Memorandum).
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Because we find that Carlstar's request for review was not timely
filed, we are preliminarily determining that Carlstar's request did not
meet the requirements of 19 CFR 351.214(c), and are rescinding the new
shipper review for Carlstar. Because much of the factual information
used in our analysis involves business proprietary information, a full
discussion of the basis for our preliminary determination is set forth
in the Preliminary NSR Rescission Memorandum.
Separate Rates
The Department preliminarily determines that information placed on
the record by the mandatory respondent, Zhongwei, as well as two
separate rate applicants, Qihang and Shandong Zhentai, demonstrates
that these companies are entitled to receive separate rates. For
additional information, see the Preliminary Decision Memorandum.
PRC-Wide Entity
The Department's policy regarding conditional review of the PRC-
wide entity applies to these reviews.\10\ Under this policy, the PRC-
wide entity will not be under review unless a party specifically
requests, or the Department self-initiates, a review of the entity.
Because no party requested a review of the PRC-wide entity in the AR or
NSR, the entity is not under review and the entity's rate (i.e., 105.31
percent) is not subject to change.\11\ Aside from the separate rate
companies discussed above, the Department considers all other companies
\12\ for which a review was requested, including the mandatory
respondent GTC, to be ineligible for a separate rate based on
information provided. For additional information, see the Preliminary
Decision Memorandum.
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\10\ See Antidumping Proceedings: Announcement of Change in
Department Practice for Respondent Selection in Antidumping Duty
Proceedings and Conditional Review of the Nonmarket Economy Entity
in NME Antidumping Duty Proceedings, 78 FR 65963 (November 4, 2013).
\11\ See Certain New Pneumatic Off-the-Road Tires From the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review; 2012-2013, 80 FR 20197 (April 15, 2015).
\12\ These companies include the mandatory respondent, Guizhou
Tyre Co., Ltd and Guizhou Tyre Import and Export Co., Ltd. (GTC),
separate rate applicant, Cheng Shin Rubber Industry Ltd., and non-
responsive respondent, Qingdao Milestone Tyres Co. Ltd.
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Methodology
The Department is conducting these reviews in accordance with
section 751(a)(1)(B) and 751(a)(2)(A) of the Act. Export and
constructed export prices were calculated in accordance with sections
772(a) and (b) of the Act. Because the PRC is a nonmarket economy
within the meaning of section 771(18) of the Act, normal value (NV) has
been calculated in accordance with section 773(c) of the Act.
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum. 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 https://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 on the
Internet at http://enforcement.trade.gov/frn/. The signed Preliminary
Decision Memorandum and the electronic versions of the Preliminary
Decision Memorandum are identical in content.
Rate for Separate Rate Companies Not Individually Examined
The statute and the Department's regulations do not address the
establishment of a rate to be applied to respondents not selected for
individual examination when the Department limits its examination of
companies subject to the administrative review pursuant to section
777A(c)(2)(B) of the Act. Generally, the Department looks to section
735(c)(5) of the Act, which provides instructions for calculating the
[[Page 46967]]
all-others rate in an investigation, for guidance when calculating the
rate for respondents not individually examined in an administrative
review. Section 735(c)(5)(A) of the Act articulates a preference for
not calculating an all-others rate using rates which are zero, de
minimis or based entirely on facts available (FA).\13\ Accordingly, the
Department's usual practice has been to determine the dumping margin
for companies not individually examined by averaging the weighted-
average dumping margins for the individually examined respondents,
excluding rates that are zero, de minimis, or based entirely on facts
available.\14\ Consistent with this practice, in the AR, we
preliminarily calculated a weighted-average dumping margin for Zhongwei
that is above de minimis and not based entirely on FA; therefore, the
Department preliminarily assigns to Qihang and Zhentai the weighted-
average margin calculated for Zhongwei as the separate rate for this
review.
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\13\ See Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews and Rescission of Reviews in Part, 73 FR
52823, 52824 (September 11, 2008), and accompanying Issues and
Decision Memorandum at Comment 16.
\14\ See Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews and Rescission of Reviews in Part, 73 FR
52823, 52824 (September 11, 2008), and accompanying Issues and
Decision Memorandum at Comment 16.
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Preliminary Results of Review
The Department preliminarily determines that the following
weighted-average dumping margins exist for the period September 1,
2015, through August 31, 2016:
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Weighted-
average
Exporter dumping
margin
(percent)
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Weihai Zhongwei Rubber Co., Ltd............................ 4.54
Shandong Zhentai Group Co., Ltd............................ 4.54
Qingdao Qihang Tyre Co. Ltd................................ 4.54
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Additionally, the Department preliminarily determines that Cheng
Shing, GTC, and Qingdao Milestone are part of the PRC-wide entity.
Disclosure, Public Comment and Opportunity To Request a Hearing
The Department intends to disclose the calculations used in our
analysis to parties in these reviews within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b).
Interested parties may submit case briefs within 30 days after the
date of publication of these preliminary results of review in the
Federal Register.\15\ Rebuttals to case briefs, which must be limited
to issues raised in the case briefs, must be filed within five days
after the time limit for filing case briefs.\16\ Parties who submit
arguments are requested to submit with the argument (a) a statement of
the issue, (b) a brief summary of the argument, and (c) a table of
authorities.\17\ Parties submitting briefs should do so pursuant to the
Department's electronic filing system, ACCESS.\18\
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\15\ See 19 CFR 351.309(c)(1)(ii).
\16\ See 19 CFR 351.309(d)(1)-(2).
\17\ See 19 CFR 351.309(c)(2), (d)(2).
\18\ See 19 CFR 351.303 (for general filing requirements).
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Any interested party may request a hearing within 30 days of
publication of this notice.\19\ Hearing requests should contain the
following information: (1) The party's name, address, and telephone
number; (2) the number of participants; and (3) a list of the issues to
be discussed. Oral presentations will be limited to issues raised in
the briefs. If a request for a hearing is made, parties will be
notified of the time and date for the hearing to be held at the U.S.
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC
20230.\20\
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\19\ See 19 CFR 351.310(c).
\20\ See 19 CFR 351.310(d).
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The Department intends to issue the final results of these reviews,
which will include the results of our analysis of all issues raised in
the case briefs, within 120 days of publication of these preliminary
results in the Federal Register, pursuant to section 751(a)(3)(A) of
the Act.
Assessment Rates
Upon issuance of the final results, the Department will determine,
and CBP shall assess, antidumping duties on all appropriate entries
covered by these reviews.\21\ The Department intends to issue
assessment instructions to CBP 15 days after the publication date of
the final results of these reviews.
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\21\ See 19 CFR 351.212(b).
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For assessment purposes, the Department applied the assessment rate
calculation method adopted in Assessment Rate Modification.\22\ For any
individually examined respondent whose weighted-average dumping margin
is above de minimis (i.e., 0.50 percent) in the final results of these
reviews, the Department will calculate importer-specific assessment
rates on the basis of the ratio of the total amount of dumping
calculated for the importer's examined sales to the total entered value
of sales, in accordance with 19 CFR 351.212(b)(1). Where an importer-
(or customer-) specific ad valorem rate is greater than de minimis, the
Department will instruct CBP to collect the appropriate duties at the
time of liquidation.\23\ Where either a respondent's weighted average
dumping margin is zero or de minimis, or an importer-(or customer-)
specific ad valorem rate is zero or de minimis, the Department will
instruct CBP to liquidate appropriate entries without regard to
antidumping duties.\24\ For the respondents that were not selected for
individual examination in the administrative review and that qualified
for a separate rate, the assessment rate will be based on the average
of the mandatory respondents.\25\
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\22\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping
Proceedings: Final Modification, 77 FR 8101 (February 14, 2012)
(Assessment Rate Modification) in the manner described in more
detail in the Preliminary Decision Memorandum.
\23\ See 19 CFR 351.212(b)(1).
\24\ See 19 CFR 351.106(c)(2).
\25\ See Preliminary Decision Memorandum.
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Pursuant to the Department's practice, for entries that were not
reported in the U.S. sales databases submitted by companies
individually examined during the administrative review, the Department
will instruct CBP to liquidate such entries at the PRC-wide rate.
Additionally, if the Department determines that an exporter had no
shipments of the subject merchandise, any suspended entries that
entered under that exporter's case number (i.e., at that exporter's
rate) will be liquidated at the PRC-wide rate.\26\
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\26\ For a full discussion of this practice, see Non-Market
Economy Antidumping Proceedings: Assessment of Antidumping Duties,
76 FR 65694 (October 24, 2011).
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Because we are preliminarily rescinding the new shipper review of
Carlstar, we are not making a determination as to whether Carlstar
qualifies for a separate rate. Therefore, if the Department proceeds to
final rescission, Carlstar will remain part of the PRC-wide entity and,
accordingly, any entries covered by this new shipper review will be
assessed at the PRC-wide rate. If we do not proceed to final
rescission, we will calculate an importer-specific assessment rate for
Carlstar, consistent with 19 CFR 351.212(b)(1) and will instruct CBP to
assess AD duties on all appropriate entries covered by the NSR if the
importer-specific assessment rate calculated in the final results of
the NSR is above de minimis.
[[Page 46968]]
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of these reviews for shipments of the
subject merchandise from the PRC entered, or withdrawn from warehouse,
for consumption on or after the publication date, as provided by
sections 751(a)(2)(C) of the Act: (1) For the companies listed above
that have a separate rate, the cash deposit rate will be that
established in the final results of this review (except, if the rate is
zero or de minimis, then zero cash deposit will be required); (2) for
previously investigated or reviewed PRC and non-PRC exporters not
listed above that received a separate rate in a prior segment of this
proceeding, the cash deposit rate will continue to be the existing
exporter-specific rate; (3) for all PRC exporters of subject
merchandise that have not been found to be entitled to a separate rate,
the cash deposit rate will be that for the PRC-wide entity; and (4) for
all non-PRC exporters of subject merchandise which have not received
their own rate, the cash deposit rate will be the rate applicable to
the PRC exporter that supplied that non-PRC exporter. These deposit
requirements, when imposed, shall remain in effect until further
notice.
Because we preliminarily did not calculate a dumping margin for
Carlstar or grant Carlstar a separate rate in this new shipper review,
as noted above, we find that Carlstar continues to be part of the PRC-
wide entity. The cash deposit rate for the PRC-wide entity is 105.31
percent. These cash deposit requirements shall remain in effect until
further notice.
Notification to Importers
This notice also 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 antidumping and/or countervailing duties
prior to liquidation of the relevant entries during the POR. Failure to
comply with this requirement could result in the Department's
presumption that reimbursement of antidumping and/or countervailing
duties occurred and the subsequent assessment of double antidumping
duties.
Notification to Interested Parties
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).
Dated: October 2, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Preliminary Determination To Rescind The New Shipper Review
V. Discussion of Methodology
A. Non-Market Economy Country
B. Surrogate Country and Surrogate Value Data
C. Surrogate Country
D. Separate Rates
E. Margin for the Companies Individually Examined
F. Margin for the Separate Rate Companies Not Individually
Examined
G. Margin for Companies Not Receiving a Separate Rate
H. Date of Sale
I. Comparisons to Normal Value
J. Export Price
K. Value-Added Tax
L. Normal Value
M. Factor Valuations
N. Currency Conversion
VI. Adjustment Under Section 777A(f) of the Act
VII. Recommendation
[FR Doc. 2017-21748 Filed 10-6-17; 8:45 am]
BILLING CODE 3510-DS-P