China Car and Truck Tires: Rates Rise in Final CV Determination

The Commerce Department issued its final affirmative countervailing duty determination on passenger vehicle and light truck tires from China (C-570-017) (here). In a change from its preliminary determination, Commerce decided to add GITI tire to the list of exporters for which liquidation of entries is retroactively back to Sept. 2. Although this final determination takes effect June 18, suspension of liquidation has been lifted since March 31, and Commerce will only require CV duty cash deposits on future entries if it issues a CV duty order.

The next step is for the International Trade Commission to make its final injury determination, currently scheduled for July 27. If the ITC finds injury, Commerce will issue a CV duty order and suspension of liquidation will be reinstated. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.

(Commerce also issued a final affirmative determination in the companion antidumping duty investigation (see 1506170011).

Changes to Scope Exemption

Commerce made changes to an exemption to AD/CV duties on passenger vehicle and light truck tires from China for specialty tires. The agency is reinstating a requirement that, to qualify for the exemption, the load index molded on the tire’s sidewall must meet or exceed load indexes listed in the Tire and Rim Association Year Book for the relevant ST tire size. It is also reinstating and amending a second requirement for the specialty tire exemption so that, in order to qualify, either the tire's speed rating molded on the sidewall does not exist 81 MPH or an "M" rating, or:

"The tire’s speed rating molded on the sidewall is 87 MPH or an “N” rating, and in either case the tire’s maximum pressure and maximum load limit are molded on the sidewall and either (1) both exceed the maximum pressure and maximum load limit for any tire of the same size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book; or (2) if the maximum cold inflation pressure molded on the tire is less than any cold inflation pressure listed for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book, the maximum load limit molded on the tire is higher than the maximum load limit listed at that cold inflation pressure for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book."

Suspension of Liquidation Now Retroactive 90 Days for Most Chinese Cos.

Commerce found "critical circumstances" exist for GITI, and continued to find "critical circumstances" for all other Chinese companies except Cooper Tire, because they purportedly increased sales of subject merchandise before the preliminary determination in an attempt to get in as much product as possible before duties were imposed. As such, it will order CBP to continue to retroactively suspend liquidation for all subject merchandise from China, except merchandise exported by Cooper, back to Sept. 2, the date 90 days prior to the preliminary determination. For Cooper, suspension of liquidation will continue for entries on or after Dec. 1.

CV Susp/Cash Deposit thru March 30

Commerce will instruct CBP to continue the suspension of liquidation of entries from Dec. 1 for Cooper, or Sept. 2 for all other exporters, through March 30, the last day of the "provisional measures" period during which Commerce can levy CV duties without an order in place.

CV Liq Reinstated and No CV Cash Deposit as of March 31

Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits or bonds for subject merchandise entered on or after March 31.

CV Liq to be Suspended Again & CV Cash Deposit Required if Order Issued

Commerce will issue a CV duty order, reinstate the suspension of liquidation, and require a cash deposit of estimated CV duties for entries of subject merchandise at the CV duty rates listed below if the International Trade Commission issues a final affirmative injury determination.

*Also includes affiliates GITI Tire (China) Investment Company Ltd., GITI Radial Tire (Anhui) Company Ltd., GITI Tire (Hualin) Company Ltd., GITI Steel Cord (Hubei) Company Ltd., and Anhui Prime Cord Fabrics Company Ltd.

†Also includes affiliate Cooper Chengshan (Shandong) Tire Co., Ltd.

(Note that there is no CV duty liability (i.e., CV duties will never be assessed on entries) during the "gap period" of March 31 until the date an ITC final affirmative injury determination is published in the Federal Register.)

(The period of investigation is 01/01/13 -- 12/31/13. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 1411280011 for summary of the preliminary determination of this investigation.)

AD/CVD Operations contact -- Emily Halle (202) 482-0176

(Federal Register 06/18/15)