Countervailing Duty Order on Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2017 |
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Jeffrey I. Kessler
Department of Commerce
23 April 2020
[Federal Register Volume 85, Number 79 (Thursday, April 23, 2020)]
[Notices]
[Pages 22718-22720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08559]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-017]
Countervailing Duty Order on Certain Passenger Vehicle and Light
Truck Tires From the People's Republic of China: Final Results of
Countervailing Duty Administrative Review; 2017
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
[[Page 22719]]
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers/exporters of
passenger vehicle and light truck tires from the People's Republic of
China (China) during the period of review (POR) January 1, 2017 through
December 31, 2017.
DATES: Applicable April 23, 2020.
FOR FURTHER INFORMATION CONTACT: Andrew Huston, 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) 482-4261.
Background
Commerce published the Preliminary Results of this administrative
review in the Federal Register on October 18, 2019.\1\ We invited
interested parties to comment on the Preliminary Results. On December
2, 2019, we received case briefs from the following interested parties:
Cooper (Kunshan) Tire Co., Ltd. (Cooper); Shandong Longyue Rubber Co.,
Ltd. (Longyue); the Government of China (GOC); and Vogue Tyre & Rubber
Co., Ltd., Sailun Jinyu Group Co., Ltd. and its affiliates, Sailun
Jinyu Group (Hong Kong) Co., Limited, Sailun Tire International Corp.,
Shandong Jinyu Industrial Co., Ltd., Seatex International Inc., Seatex
PTE. Ltd., Dynamic Tire Corp., and Husky Tire Corp., Shandong Wanda
Boto Tyre Co., Ltd., and ITG Voma Corporation (collectively, Other
Interested Parties). On December 13, 2019, the United Steel, Paper and
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service
Workers Union, AFL-CIO (the petitioner) submitted a rebuttal brief. On
February 5, 2020, Commerce extended the period for issuing the final
results of this review until April 15, 2020.\2\
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\1\ See Certain Passenger Vehicle and Light Truck Tires from the
People's Republic of China: Preliminary Results of Countervailing
Duty Administrative Review and Rescission, in Part; 2017, 84 FR
55913 (October 18, 2019) (Preliminary Results) and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Administrative Review of the
Countervailing Duty Order on Passenger Vehicle and Light Truck Tires
from the People's Republic of China: Extension of Deadline for Final
Results,'' dated February 15, 2020.
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Scope of the Order
The products covered by the order are certain passenger vehicle and
light truck tires from the China. A full description of the scope of
the order is contained in the Issues and Decision Memorandum.\3\
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\3\ See ``Decision Memorandum for the Final Results of the
Administrative Review of the Countervailing Duty Order on Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China; 2017,'' dated concurrently with this notice (Issues and
Decision Memorandum) and hereby adopted by this notice.
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Analysis of Comments Received
All issues raised in interested parties' briefs are addressed in
the Issues and Decision Memorandum accompanying this notice. A list of
the issues raised by interested parties and to which we responded in
the Issues and Decision Memorandum is provided in Appendix I to this
notice. The Issues and 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. In
addition, a complete version of the Issues and Decision Memorandum can
be access directly at http://enforcement.trade.gov/frn/. The signed and
electronic versions of the Issues and Decision Memorandum are identical
in content.
Changes Since the Preliminary Results
Based on case briefs and evidence on the record, we made certain
changes from the Preliminary Results. Commerce has changed the carbon
black benchmark for both respondents, adjusted the denominator used for
subsidies received by Cooper's affiliate Qingdao Ge Rui Da Rubber Co.,
Ltd., and corrected various ministerial errors for both respondents.
These changes are explained in the Issues and Decision Memorandum.
Methodology
Commerce conducted this review in accordance with section
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each
of the subsidy programs found to be countervailable, we find that there
is a subsidy, i.e., a financial contribution from a government or
public entity that gives rise to a benefit to the recipient, and that
the subsidy is specific.\4\ For a full description of the methodology
underlying all of Commerce's conclusions, including any determination
that relied upon the use of adverse facts available pursuant to
sections 776(a) and (b) of the Act, see the Issues and Decision
Memorandum.
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\4\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Final Results of Administrative Review
In accordance with 19 CFR 351.221(b)(5), we calculated a
countervailable subsidy rate for the mandatory respondents, Cooper and
Longyue. For the non-selected companies subject to this review,\5\ we
followed Commerce's practice, which is to base the subsidy rates on an
average of the subsidy rates calculated for those companies selected
for individual review, excluding de minimis rates or rates based
entirely on adverse facts available.\6\ In this case, for the non-
selected companies, we have calculated a rate by weight-averaging the
calculated subsidy rates of Cooper and Longyue using their publicly-
ranged sales data for exports of subject merchandise to the United
States during the POR. We find the countervailable subsidy rates for
the producers/exporters under review to be as follows:
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\5\ See Appendix II.
\6\ See, e.g., Certain Pasta from Italy: Preliminary Results of
the 13th (2008) Countervailing Duty Administrative Review, 75 FR
18806, 18811 (April 13, 2010), unchanged in Certain Pasta from
Italy: Final Results of the 13th (2008) Countervailing Duty
Administrative Review, 75 FR 37386 (June 29, 2010).
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Subsidy
Company rate (%)
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Cooper (Kunshan) Tire Co., Ltd. (Cooper) \7\................ 17.15
Shandong Longyue Rubber Co., Ltd. (Longyue)................. 27.00
Non-Selected Companies Under Review \8\..................... 20.05
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Disclosure
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\7\ As discussed in the Preliminary Results PDM, Cooper is
cross-owned with Cooper Tire Asia-Pacific (Shanghai) Trading Co.,
Ltd., Cooper Tire (China) Investment Co. Ltd., and Qingdao Ge Rui Da
Rubber Co., Ltd.
\8\ See Appendix II.
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We will disclose to the parties in this proceeding the calculations
performed for these final results within five days of the date of
publication of this notice in the Federal Register.\9\
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\9\ See 19 CFR 351.224(b).
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Assessment Rates
Consistent with 19 CFR 351.212(b)(2), we intend to issue assessment
instructions to U.S. Customs and Border Protection (CBP) 15 days after
the date of publication of these final results of review, to liquidate
shipments of subject merchandise entered, or withdrawn from warehouse,
for consumption, on or after January 1, 2017 through December 31, 2017,
at the ad valorem rates listed above.
Cash Deposit Instructions
In accordance with section 751(a)(1) of the Act, we intend to
instruct CBP to collect cash deposits of estimated countervailing
duties in the amounts shown for each of the respective
[[Page 22720]]
companies listed above. These cash deposit requirements, when imposed,
shall remain in effect until further notice.
Administrative Protective Order
This notice also serves as a reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the return or destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a sanctionable
violation.
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.
Dated: April 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. List of Comments From Interested Parties
IV. Scope of the Order
V. Changes Since the Preliminary Results
VI. Non-Selected Companies Under Review
VII. Subsidies Valuation Information
1. Allocation Period
2. Attribution of Subsidies
3. Denominators
4. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Programs Determined To Be Countervailable
X. Programs Determined Not To Be Used or Not To Confer Measurable
Benefits During the POR
XI. Analysis of Comments
Comment 1: Government Policy Lending Calculation
Comment 2: Uncreditworthy Benchmark Interest Rate
Comment 3: Export Buyer's Credit (EBC), Usage by Respondents
Comment 4: Export Buyer's Credit, AFA Rate
Comment 5: Carbon Black Market Distortion
Comment 6: Carbon Black Benchmark, Tier 2 Data Issues
Comment 7: Ocean Freight and Import Duties Added to Tier 1 or
Tier 2 Benchmarks
Comment 8: Other Subsidies
Comment 9: Inland Freight Expenses for Cooper and GRT's Carbon
Black Benchmark
Comment 10: Cooper's Loan Benefit Calculation
Comment 11: GRT's Subsidies
Comment 12: GRT Land Benefit Calculation
Comment 13: GRT's Grant Benefit Calculation
Comment 14: Longyue's Loan Benchmarks
Comment 15: Longyue's Land Benefit Calculation
XII. Recommendation
Appendix--Non-Selected Companies Under Review
Appendix II
Non-Selected Companies Under Review
1. Anhui Jichi Tire Co., Ltd.
2. Bridgestone (Tianjin) Tire Co., Ltd.
3. Bridgestone Corporation
4. Dynamic Tire Corp.
5. Hankook Tire China Co., Ltd.
6. Husky Tire Corp.
7. Jiangsu Hankook Tire Co., Ltd.
8. Mayrun Tyre (Hong Kong) Limited
9. Qingdao Fullrun Tyre Corp., Ltd.
10. Qingdao Sunfulcess Tyre Co., Ltd.\10\
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\10\ This company was mistakenly listed in the Initiation of
Antidumping and Countervailing Duty Administrative Reviews, 83 FR
50077 (October 4, 2018), and Preliminary Results as Qingdao
Sunfulcess Trye Co., Ltd.
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11. Sailun Jinyu Group Co., Ltd.
12. Sailun Jinyu Group (Hong Kong) Co., Limited
13. Sailun Tire International Corp.
14. Seatex International Inc.
15. Seatex PTE, Ltd.
16. Shandong Achi Tyres Co., Ltd.
17. Shandong Anchi Tyres Co., Ltd.
18. Shandong Duratti Rubber Corporation Co., Ltd.
19. Shandong Haohua Tire Co., Ltd.
20. Shandong Hengyu Science & Technology Co., Ltd.
21. Shandong Jinyu Industrial Co., Ltd.
22. Shandong Province Sanli Tire Manufactured Co., Ltd.
23. Shandong Wanda Boto Tyre Co., Ltd.
24. Triangle Tyre Co., Ltd.
25. Winrun Tyre Co., Ltd.
[FR Doc. 2020-08559 Filed 4-22-20; 8:45 am]
BILLING CODE 3510-DS-P