China Car Tires: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on passenger vehicle and light truck tires from China (A-570-016/C-570-017). The agency will determine whether imports of the tires are being sold in the U.S. at less than fair value or illegally subsidized. The United Steelworkers trade union requested the investigations on June 3, alleging that, since safeguard duties on Chinese tires expired in 2012, dumped and subsidized Chinese tires have flooded the U.S. market and hurt U.S. workers (see 14060402).
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The period under investigation in the AD duty investigation is Oct. 1, 2013 through March 31, 2014, while in the CV duty case it's Jan. 1, 2013 through Dec. 31, 2013.
AD/CVD Respondent Selection
For AD duty investigation, Commerce says it will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one. Commerce said it will post a copy of the quantity and value questionnaire on its website (here). Responses are due Aug. 1. For the CV duty investigation, Commerce says it will select respondents based on CBP import data.
Scope of the AD/CVD Investigations
The scope of this investigation is passenger vehicle and light truck tires. Passenger vehicle and light truck tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. Tires covered by this investigation may be tube-type, tubeless, radial, or non-radial, and they may be intended for sale to original equipment manufacturers or the replacement market.
Subject tires have, at the time of importation, the symbol “DOT” on the sidewall, certifying that the tire conforms to applicable motor vehicle safety standards. Subject tires may also have the following prefixes or suffix in their tire size designation, which also appears on the sidewall of the tire:
Prefix designations:
- P - Identifies a tire intended primarily for service on passenger cars
- LT- Identifies a tire intended primarily for service on light trucks
Suffix letter designations:
- LT - Identifies light truck tires for service on trucks, buses, trailers, and multipurpose passenger vehicles used in nominal highway service.
- All tires with a “P” or “LT” prefix, and all tires with an “LT” suffix in their sidewall markings are covered by this investigation regardless of their intended use.
In addition, all tires that lack a “P” or “LT” prefix or suffix in their sidewall markings, as well as all tires that include any other prefix or suffix 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 passenger car section or light truck section of the Tire and Rim Association Year Book, as updated annually.
Passenger vehicle and light truck tires, whether or not attached to wheels or rims, are included in the scope. However, if a subject tire is imported attached to a wheel or rim, only the tire is covered by the scope.
Specifically excluded from the scope of this investigation are the following types of tires: (1) racing car tires, defined as tires for use exclusively on a race track; such tires do not bear the symbol 'DOT' on the sidewall; (2) new pneumatic tires, of rubber, of a size that is not listed in the passenger car section or light truck section of the Tire and Rim Association Year Book; (3) pneumatic tires, of rubber, that are not new, including recycled and retreaded tires; and (4) non-pneumatic tires, such as solid rubber tires.
The products covered by the investigation are currently classified under the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10. Tires meeting the scope description may also enter under the following HTSUS subheadings: 4011.99.45.00, 4011.99.85.00, 8708.70.45.45, 8708.70.45.60, 8708.70.60.30, 8708.70.60.45, and 8708.70.60.60. While HTSUS subheadings are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive.
Comments on Scope Due by Aug. 4
Commerce said it discussed the scope with petitioners to ensure it's an accurate reflection of the products for which the domestic industry is seeking relief. Comments on the scope of both investigations are due by Aug. 4.
Investigations Timetable
| Event | AD Duty | CV Duty |
|---|---|---|
| Petitions filed | 06/03/14 | 06/03/14 |
| DOC initiation date | 07/14/14 | 07/14/14 |
| ITC prelim determination1 | 08/01/14 | 08/01/14 |
| DOC prelim determination2 | 12/01/14 | 09/17/14 |
| DOC final determination2 | 02/17/15 | 12/01/14 |
| ITC final determination3 | 03/31/15 | 01/15/15 |
| Issuance of orders4 | 04/07/15 | 01/22/15 |
1If the ITC makes a negative determination of injury, the investigations are terminated.
2These deadlines may be extended under the governing statute.
3This will take place only in the event of Commerce Department final affirmative determinations.
4This will take place only in the event of Commerce and ITC final affirmative determinations.
(See 14060402 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)
The AD duty initiation notice is (here).
The CV duty initiation notice is (here).
The Commerce Department fact sheet on the initiation of these investigations is (here).
(Federal Register 07/21/14)