[Federal Register Volume 73, Number 136 (Tuesday, July 15, 2008)]
[Notices]
[Pages 40480-40485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16154]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-913]


Certain New Pneumatic Off-the-Road Tires From the People's 
Republic of China: Final Affirmative Countervailing Duty Determination 
and Final Negative Determination of Critical Circumstances

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has reached a 
final determination that countervailable subsidies are being provided 
to producers/exporters of certain new pneumatic off-the-road tires (OTR 
tires) from the People's Republic of China (PRC). For information on 
the final subsidy rates, see the ``Final Determination'' section of 
this notice.

DATES: Effective Date: July 15, 2008.

FOR FURTHER INFORMATION CONTACT: Mark Hoadley, Jun Jack Zhao, Nicholas 
Czajkowski, or Toni Page, AD/CVD Operations, Office 6, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, Room 7866, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-3148, (202) 482-1396, (202) 
482-1395, or (202) 482-1398, respectively.

SUPPLEMENTARY INFORMATION: 

Case History

    Since the publication of the preliminary determination in the 
Federal Register on December 17, 2007, the following events have 
occurred. See Certain New Pneumatic Off-the-Road Tires From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, 72 FR 71360 (December 17, 2007)

[[Page 40481]]

(Preliminary Determination). At the request of Petitioners,\1\ the 
Department aligned the final determination in this countervailing duty 
investigation with the final determination in the companion antidumping 
duty investigation. See Certain New Pneumatic Off-the-Road Tires from 
the People's Republic of China: Alignment of Final Countervailing Duty 
Determination With Final Antidumping Duty Determination, 73 FR 3238 
(January 17, 2008).
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    \1\ Titan Tire Corporation and United Steel, Paper and Forestry, 
Rubber, Manufacturing, Energy Allied Industrial and Service Workers 
International Union, AFL-CIO-CLC (collectively, Petitioners). The 
domestic interested party is Bridgestone Americas Holding, Inc. and 
its subsidiary, Bridgestone Firestone North America Tire, LLC 
(collectively, Bridgestone).
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    In the Preliminary Determination, we invited Petitioners, 
Bridgestone, and all of the Respondents \2\ to comment on land use 
rights. We received comments from all parties regarding this issue on 
January 7, 2008. The Petitioners, Bridgestone and the Respondents also 
submitted factual information and arguments prior to the final 
determination based on various deadlines for submissions of factual 
information and/or arguments established by the Department subsequent 
to the Preliminary Determination.
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    \2\ The Government of The People's Republic of China (GOC), 
Guizhou Tire Co., Ltd. (GTC), Hebei Starbright Tire Co., Ltd. 
(Starbright), and Tianjin United Tire & Rubber International Co., 
Ltd. (TUTRIC) (collectively, Respondents).
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    On January 9, 2008, the Department issued supplemental 
questionnaires to the GOC, GTC, Starbright, and TUTRIC. We received 
responses to our January 9, 2008 supplemental questionnaire from all 
Respondents on February 6, 2008. We issued another supplemental 
questionnaire to all respondent parties on January 25, 2008 for which 
we received responses from all Respondents on February 15, 2008. The 
Department issued a supplemental questionnaire to the GOC on February 
13, 2008 for which the GOC filed a response on February 27, 2008. The 
Department issued a supplemental questionnaire to GTC on February 15, 
2008 for which GTC filed a response on February 28, 2008. The 
Department also issued supplemental questionnaires to TUTRIC and 
Starbright on February 19, 2008, pursuant to which the companies filed 
responses on February 27, 2008.
    The Department received requests for a hearing from the 
Petitioners, Bridgestone, the GOC, Starbright, and GTC on January 9, 
2008 and on January 16, 2008 from TUTRIC. The Department had scheduled 
the hearing for June 19, 2008; however, on June 16, 2008 the Department 
received a letter from Bridgestone stating that all interested parties 
agreed that a hearing was not necessary. See Letter to the Department, 
``New Pneumatic Off-the-Road Tires From the People's Republic of China: 
Consent Withdrawal of All Hearing Requests'' (June 16, 2008), on file 
in the Department's Central Records Unit (CRU) (Room 1117 in the HCHB 
Building).
    From March 3 through March 13, 2008, we conducted verification of 
the questionnaire responses submitted by the GOC, including the 
national, provincial, and local governments, GTC, and TUTRIC. The 
Department issued verification reports on April 22, 2008 and April 24, 
2008. See Memorandum to Thomas Gilgunn, Program Manager, Countervailing 
Duty Investigation: New Pneumatic Off-the-Road Tires from the People's 
Republic of China: Verification of the Questionnaire Responses 
Submitted by the Government of the People's Republic of China (GOC) 
(GOC Verification Report); Memorandum to Thomas Gilgunn, Program 
Manager, Countervailing Duty Investigation: New Pneumatic Off-the-Road 
Tires from the People's Republic of China: Verification of the 
Questionnaire Responses Submitted by GTC Co., Ltd. (GTC Verification 
Report); Memorandum to Thomas Gilgunn, Program Manager, Countervailing 
Duty Investigation: New Pneumatic Off-the-Road Tires from the People's 
Republic of China: Meetings with the Government of the Guizhou Province 
Regarding GTC Co., Ltd. and Affiliates (Guizhou Province Verification 
Report); Memorandum to Thomas Gilgunn, Program Manager, Countervailing 
Duty Investigation: New Pneumatic Off-the-Road Tires from the People's 
Republic of China: Verification of the Questionnaire Responses 
Submitted by Tianjin United Tire & Rubber International Co., Ltd. 
(TUTRIC Verification Report); and Memorandum to Thomas Gilgunn, Program 
Manager, Countervailing Duty Investigation: New Pneumatic Off-the-Road 
Tires from the People's Republic of China: Meetings with the Government 
of Tianjin Municipality Regarding Tianjin United Tire & Rubber 
International Co., Ltd. and Affiliates (Tianjin Government Verification 
Report).
    On March 7, 2008, the Department decided not to verify Starbright 
because the company had repeatedly declined to provide requested 
information. See Letter to Starbright, Countervailing Duty 
Investigation: New Pneumatic Off-the-Road Tires from the People's 
Republic of China (March 7, 2008), on file in the Department's CRU. On 
March 11 and March 12, 2008, Starbright and the GOC, respectively, 
filed letters objecting to the Department's decision. On March 12, 
2008, Petitioners and Bridgestone filed letters stating that the 
Department should not verify Starbright. The Department held several 
meetings with Starbright officials and GOC officials. See Memoranda to 
the File, ``Ex-parte Meeting with Representatives of Hebei Starbright 
Tire Co., Ltd.'' (March 11, 2008), ``Meeting with Chinese Ministry of 
Commerce Bureau of Fair Trade Director General Li Ling'' (March 12, 
2008), ``Ex-Parte Meeting with Representatives of Hebei Starbright Tire 
Co., Ltd.'' (March 24, 2008), on file in the Department's CRU.
    After evaluating all of the parties' submissions and arguments on 
the matter, the Department stated that it would conduct a limited 
verification of Starbright's recurring subsidies received after 
Starbright's change in ownership. See Letter to Starbright, 
Countervailing Duty Investigation of New Pneumatic Off-the-Road Tires 
from the People's Republic of China (March 12, 2008). The Department 
then issued the GOC and Starbright a supplemental questionnaire 
providing them a final opportunity to provide the information 
previously requested. See the Department's questionnaires to the GOC 
and Starbright (March 24, 2008). The Department stated that it would 
reconsider its decision not to verify Starbright and the local 
governments that have jurisdiction over the company if Starbright and 
the GOC provided complete responses to the Department's March 24, 2008 
questionnaire concerning Starbright's change in ownership. In the cover 
letter to the questionnaire, we stated that we needed the information 
regarding Starbright's purchase of Hebei Tire Co., Ltd. to analyze 
fully Starbright's claim that the sale at issue was at arm's length and 
for fair market value. The Department informed Starbright that, if the 
company or the GOC decided not to provide the information requested, 
the Department would use facts otherwise available with possible 
adverse inferences. See the Cover Letter of the Department's March 24, 
2008 Questionnaire to Starbright. The GOC and Starbright filed 
responses to these questionnaires, respectively, on April 8 and April 
9, 2008.
    Based on our examination of these responses, the Department decided 
to verify. See Letter to the GOC, Countervailing Duty Investigation: 
New Pneumatic Off-the-Road Tires from the People's Republic of China 
(April 18, 2008) and Letter to Starbright, Countervailing Duty 
Investigation: New

[[Page 40482]]

Pneumatic Off-the-Road Tires from the People's Republic of China (April 
21, 2008) to which the verification outlines were attached, on file in 
the Department's CRU. The Department then verified Starbright as well 
as the governments of Hebei province and the city of Xingtai from April 
24 through May 1, 2008. We issued verification reports on May 13, 2008 
and May 14, 2008. See Memorandum to Thomas Gilgunn, Program Manager, 
Countervailing Duty Investigation: New Pneumatic Off-the-Road Tires 
from the People's Republic of China: Meetings with the Government of 
Hebei Province and Xingtai Municipality Regarding Hebei Starbright Tire 
Co., Ltd. (Starbright) and Hebei Tire Co., Ltd. (Hebei Tire) (Hebei 
Province Verification Report) and Memorandum to Thomas Gilgunn, Program 
Manager, Countervailing Duty Investigation: New Pneumatic Off-the-Road 
Tires from the People's Republic of China: Verification of the 
Questionnaire Responses Submitted by Hebei Starbright Tire Co., Ltd. 
(Starbright) (Starbright Verification Report).
    On May 2, 2008, we issued our post-preliminary analysis for certain 
programs for which the Department stated in the Preliminary 
Determination additional information was needed. See Memorandum to 
David M. Spooner, Assistant Secretary for Import Administration, 
Countervailing Duty Investigation of New Pneumatic Off-the-Road Tires 
from the People's Republic of China; Post-Preliminary Analysis of Non-
Tradable Share Reform; Provision of Water to FIEs for Less than 
Adequate Remuneration; Grants to the Tire Industry for Electricity; and 
Various Provincial/Municipal Programs (May 2, 2008) (Post-Preliminary 
Analysis), on file in the Department's CRU. The Department then issued 
a post-preliminary analysis regarding the change in ownership for 
Starbright. See Memorandum to David M. Spooner, Assistant Secretary for 
Import Administration, Countervailing Duty Investigation of Certain New 
Pneumatic Off-the-Road Tires (OTR Tires) from the People's Republic of 
China; Analysis of Change in Ownership (May 28, 2008) (CIO Memorandum).
    Due to the decision to conduct verification of Starbright, the 
Department set up two separate briefing schedules: one for all issues 
except Starbright-specific issues and one for Starbright issues. See 
Memorandum to the File, Countervailing Duty Investigation of Certain 
New Pneumatic Off-the-Road Tires from the People's Republic of China: 
Briefing and Hearing Schedules (April 3, 2008) and Memorandum to the 
File, Countervailing Duty Investigation of Certain New Pneumatic Off-
the-Road Tires from the People's Republic of China: Briefing and 
Hearing Schedules (May 28, 2008). In accordance with the briefing 
schedules, we received case briefs from Petitioners, Bridgestone, the 
GOC, GTC, and TUTRIC on May 9 and 12, 2008. The same parties submitted 
rebuttal briefs on May 15, 2008. The Department then received case 
briefs regarding Starbright-specific issues on June 4 and June 5, 2008 
from Petitioners, Bridgestone, the GOC, and Starbright. On June 6, 
2008, the Department determined that Starbright's brief contained 
untimely new factual information and requested that Starbright submit 
replacement pages with all references to this information removed. See 
Letter to Starbright, New Factual Information (June 6, 2008). 
Starbright submitted replacement pages without the untimely filed new 
factual information on June 9, 2008. Petitioners, Bridgestone, the GOC, 
and Starbright submitted rebuttal briefs pertaining to Starbright-
specific issues on June 9 and June 10, 2008.
    On June 10, 2008, both Bridgestone and Starbright filed letters 
with the Department alleging that the other party had included new 
factual information on the record in both the case briefs and the 
rebuttal briefs. On June 13, 2008, the Department issued a memorandum 
to the file addressing all allegations of new factual information. See 
Memorandum to the File, Various Allegations Concerning Case and 
Rebuttal Briefs Regarding Hebei Starbright Tire Co., Ltd. (Starbright), 
on file in the Department's CRU. In the June 13, 2008 memorandum, the 
Department: (1) Determined that we would not address Petitioners' or 
Bridgestone's uncreditworthiness allegation against Starbright that 
both raised in their respective briefs; (2) determined that information 
in Starbright's rebuttal brief was not new factual information; (3) 
determined that information submitted by Bridgestone in its rebuttal 
brief was not new factual information; and (4) clarified that 
Bridgestone's comments regarding market distortions in its June 9, 2008 
rebuttal brief were allowed as part of the arguments concerning whether 
the sale of Hebei Tire was for fair market value.

Period of Investigation

    The period of investigation (POI) for which we are measuring 
subsidies is calendar year 2006.

Scope of the Investigation

    The products covered by the scope of this investigation are new 
pneumatic tires designed for off-the-road (OTR) and off-highway use, 
subject to certain exceptions. In the Preliminary Determination, we 
stated that we had received comments on the scope of the investigation 
from a number of parties and that all comments raised by the parties 
would be addressed in the companion antidumping investigation. On May 
14, 2008, the Department issued a memorandum regarding the scope of 
both the AD and CVD Investigations on OTR Tires from the PRC, 
addressing the scope comments submitted by multiple interested parties. 
See Preliminary Determination: Comments on the Scope of the 
Investigations (Preliminary Scope Determination).
    In the Preliminary Scope Determination, we made certain 
modifications to the scope of the investigation and invited interested 
parties to comment on these modifications. Interested parties submitted 
comments on the Preliminary Scope Determination on May 22, 2008 and 
rebuttal comments on May 27, 2008. Based on these comments, we have 
made certain clarifications to the scope of the investigation. These 
clarifications, as well as a complete description of all products 
covered by the scope of this investigation, and a list of excluded 
products, are reflected in the Final Scope of the Investigation which 
is appended to this notice at Appendix I.
    All comments submitted on the Preliminary Scope Determination are 
addressed in the Scope Comments section of the Issues and Decision 
Memorandum for the Final Affirmative Countervailing Duty Determination: 
Certain New Pneumatic Off-the-Road Tires from the People's Republic of 
China (Issues and Decision Memorandum), which is issued concurrently 
with this notice.

Critical Circumstances

    On March 11, 2008, Petitioners submitted a timely critical 
circumstances allegation. On April 22, 2008, the Department 
preliminarily determined that critical circumstances did not exist for 
imports of OTR tires from the PRC. See Notice of Preliminary Negative 
Determination of Critical Circumstances: Certain New Pneumatic Off-the-
Road Tires From the People's Republic of China, 73 FR 21588 (April 22, 
2008) (Critical Circumstances Notice). Pursuant to section 705(a)(2) of 
the Tariff Act of 1930, as amended (the

[[Page 40483]]

Act), in order for critical circumstances to exist, the Department must 
find that there are countervailable subsidies that are inconsistent 
with the World Trade Organization Agreement on Subsidies and 
Countervailing Measures (SCM Agreement ) (i.e., import substitution 
subsidies or export subsidies), and that there have been massive 
imports over a relatively short period (i.e., whether there was a surge 
in imports). Based on our analyses of the results of verification and 
the comments submitted by the parties, we have determined that none of 
the respondents have received subsidies inconsistent with the SCM 
Agreement. We therefore need not reach the issue of whether there have 
been massive imports over a relatively short period of time. Since the 
requirements of section 705(a)(2) of the Act have not been met, we 
determine that critical circumstances do not exist with respect to 
imports of OTR tires from the PRC.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised by 
interested parties in their case briefs and rebuttal briefs on the 
Preliminary Determination, the Post-Preliminary Analysis, and the CIO 
Memorandum, are discussed in the Issues and Decision Memorandum. A list 
of the subsidy programs and of the issues that parties have raised is 
attached to this notice as Appendix II. Parties can find a complete 
discussion of all of the subsidy programs and issues raised in this 
investigation and the corresponding recommendations in this public 
memorandum, which is on file in the Department's CRU. A complete 
version of the Issues and Decision Memorandum is available at http://www.trade.gov/ia under the heading ``Federal Register Notices.'' The 
paper copy and the electronic version of the Issues and Decision 
Memorandum are identical in content.

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we determine 
the total net countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                             Net subsidy
                     Producer/Exporter                           rate
                                                              (percent)
------------------------------------------------------------------------
Guizhou Tire Co., Ltd. (GTC)...............................         2.45
Hebei Starbright Tire Co., Ltd. (Starbright)...............        14.00
Tianjin United Tire & Rubber International Co., Ltd.                6.85
 (TUTRIC)..................................................
All-Others.................................................         5.62
------------------------------------------------------------------------

    In accordance with section 705(c)(5)(A)(ii) of the Act, we have 
calculated the all others rate based on a weighted average of the three 
mandatory respondents' calculated rates.

Suspension of Liquidation

    In accordance with sections 703(d)(1)(B) and (2) of the Act, we 
directed U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of OTR tires from the PRC that were entered, 
or withdrawn from warehouse, for consumption on or after December 17, 
2007. In accordance with section 703(d) of the Act, we instructed CBP 
to discontinue the suspension of liquidation for countervailing duty 
purposes for subject merchandise entered, or withdrawn from warehouse, 
on or after April 15, 2008, but to continue the suspension of 
liquidation of all entries from December 17, 2007 through April 14, 
2008.
    If the ITC issues a final affirmative determination of injury, we 
will issue a countervailing duty order, reinstate suspension of 
liquidation under section 706(a) of the Act for all entries, and 
require a cash deposit of estimated countervailing duties for such 
entries of merchandise at the rates indicated above. If the ITC 
determines that material injury to, threat of material injury to, or 
material retardation of, the domestic industry does not exist, this 
proceeding will be terminated and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with section 
351.305(a)(3) of the Department's regulations. Failure to comply is a 
violation of the APO.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: July 7, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I: Final Scope of the Investigation

    The products covered by the scope are new pneumatic tires 
designed for off-the-road (OTR) and off-highway use, subject to 
exceptions identified below. Certain OTR tires are generally 
designed, manufactured and offered for sale for use on off-road or 
off-highway surfaces, including but not limited to, agricultural 
fields, forests, construction sites, factory and warehouse 
interiors, airport tarmacs, ports and harbors, mines, quarries, 
gravel yards, and steel mills. The vehicles and equipment for which 
certain OTR tires are designed for use include, but are not limited 
to: (1) Agricultural and forestry vehicles and equipment, including 
agricultural tractors,\3\ combine harvesters,\4\ agricultural high 
clearance sprayers,\5\ industrial tractors,\6\ log-skidders,\7\ 
agricultural implements, highway-towed implements, agricultural 
logging, and agricultural, industrial, skid-steers/mini-loaders;\8\ 
(2) construction vehicles and equipment, including earthmover 
articulated dump products, rigid frame haul trucks,\9\ front end 
loaders,\10\ dozers,\11\ lift trucks,

[[Page 40484]]

straddle carriers,\12\ graders,\13\ mobile cranes,\14\ compactors; 
and (3) industrial vehicles and equipment, including smooth floor, 
industrial, mining, counterbalanced lift trucks, industrial and 
mining vehicles other than smooth floor, skid-steers/mini-loaders, 
and smooth floor off-the-road counterbalanced lift trucks.\15\ The 
foregoing list of vehicles and equipment generally have in common 
that they are used for hauling, towing, lifting, and/or loading a 
wide variety of equipment and materials in agricultural, 
construction and industrial settings. Such vehicles and equipment, 
and the descriptions contained in the footnotes are illustrative of 
the types of vehicles and equipment that use certain OTR tires, but 
are not necessarily all-inclusive.
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    \3\ Agricultural tractors are dual-axle vehicles that typically 
are designed to pull farming equipment in the field and that may 
have front tires of a different size than the rear tires.
    \4\ Combine harvesters are used to harvest crops such as corn or 
wheat.
    \5\ Agricultural sprayers are used to irrigate agricultural 
fields
    \6\ Industrial tractors are dual-axle vehicles that typically 
are designed to pull industrial equipment and that may have front 
tires of a different size than the rear tires.
    \7\ A log-skidder has a grappling lift arm that is used to 
grasp, lift and move trees that have been cut down to a truck or 
trailer for transport to a mill or other destination.
    \8\ Skid-steer loaders are four-wheel drive vehicles with the 
left-side drive wheels independent of the right-side drive wheels 
and lift arms that lie alongside the driver with the major pivot 
points behind the driver's shoulders. Skid-steer loaders are used in 
agricultural, construction and industrial settings.
    \9\ Haul trucks, which may be either rigid frame or articulated 
(i.e., able to bend in the middle) are typically used in mines, 
quarries and construction sites to haul soil, aggregate, mined ore, 
or debris.
    \10\ Front loaders have lift arms in front of the vehicle. They 
can scrape material from one location to another, carry material in 
their buckets, or load material into a truck or trailer.
    \11\ A dozer is a large four-wheeled vehicle with a dozer blade 
that is used to push large quantities of soil, sand, rubble, etc., 
typically around construction sites. They can also be used to 
perform ``rough grading'' in road construction.
    \12\ A straddle carrier is a rigid frame, engine-powered machine 
that is used to load and offload containers from container vessels 
and load them onto (or off of) tractor trailers.
    \13\ A grader is a vehicle with a large blade used to create a 
flat surface. Graders are typically used to perform ``finish 
grading.'' Graders are commonly used in maintenance of unpaved roads 
and road construction to prepare the base course onto which asphalt 
or other paving material will be laid.
    \14\ i.e., ``on-site'' mobile cranes designed for off-highway 
use.
    \15\ A counterbalanced lift truck is a rigid framed, engine-
powered machine with lift arms that has additional weight 
incorporated into the back of the machine to offset or 
counterbalance the weight of loads that it lifts so as to prevent 
the vehicle from overturning. An example of a counterbalanced lift 
truck is a counterbalanced fork lift truck. Counterbalanced lift 
trucks may be designed for use on smooth floor surfaces, such as a 
factory or warehouse, or other surfaces, such as construction sites, 
mines, etc.
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    While the physical characteristics of certain OTR tires will 
vary depending on the specific applications and conditions for which 
the tires are designed (e.g., tread pattern and depth), all of the 
tires within the scope have in common that they are designed for 
off-road and off-highway use. Except as discussed below, OTR tires 
included in the scope of the proceeding range in size (rim diameter) 
generally but not exclusively from 8 inches to 54 inches. The tires 
may be either tube-type \16\ or tubeless, radial or non-radial, and 
intended for sale either to original equipment manufacturers or the 
replacement market. 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. While HTSUS 
subheadings are provided for convenience and customs purposes, our 
written description of the scope is dispositive.
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    \16\ While tube-type tires are subject to the scope of this 
proceeding, tubes and flaps are not subject merchandise and 
therefore are not covered by the scope of this proceeding, 
regardless of the manner in which they are sold (e.g. sold with or 
separately from subject merchandise).
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    Specifically excluded from the scope are new pneumatic tires 
designed, manufactured and offered for sale primarily for on-highway 
or on-road use, including passenger cars, race cars, station wagons, 
sport utility vehicles, minivans, mobile homes, motorcycles, 
bicycles, on-road or on-highway trailers, light trucks, and trucks 
and buses. Such tires generally have in common that the symbol 
``DOT'' must appear on the sidewall, certifying that the tire 
conforms to applicable motor vehicle safety standards. Such excluded 
tires may also have the following designations that are used by the 
Tire and Rim Association:
    Prefix letter designations:
     P--Identifies a tire intended primarily for service on 
passenger cars;
     LT--Identifies a tire intended primarily for service on 
light trucks; and,
     ST--Identifies a special tire for trailers in highway 
service.
    Suffix letter designations:
     TR--Identifies a tire for service on trucks, buses, and 
other vehicles with rims having specified rim diameter of nominal 
plus 0.156'' or plus 0.250'';
     MH--Identifies tires for Mobile Homes;
     HC--Identifies a heavy duty tire designated for use on 
``HC'' 15'' tapered rims used on trucks, buses, and other vehicles. 
This suffix is intended to differentiate among tires for light 
trucks, and other vehicles or other services, which use a similar 
designation.
     Example: 8R17.5 LT, 8R17.5 HC;
     LT--Identifies light truck tires for service on trucks, 
buses, trailers, and multipurpose passenger vehicles used in nominal 
highway service; and
     MC--Identifies tires and rims for motorcycles.
    The following types of tires are also excluded from the scope: 
Pneumatic tires that are not new, including recycled or retreaded 
tires and used tires; non-pneumatic tires, including solid rubber 
tires; tires of a kind designed for use on aircraft, all-terrain 
vehicles, and vehicles for turf, lawn and garden, golf and trailer 
applications. Also excluded from the scope are radial and bias tires 
of a kind designed for use in mining and construction vehicles and 
equipment that have a rim diameter equal to or exceeding 39 inches. 
Such tires may be distinguished from other tires of similar size by 
the number of plies that the construction and mining tires contain 
(minimum of 16) and the weight of such tires (minimum 1500 pounds).

Appendix II: Issues and Decision Memorandum

I. Summary
II. Background
III. Subsidies Valuation
IV. Analysis of Programs
    A. Programs Determined To Be Countervailable
    1. Government Provision of Rubber for Less than Adequate 
Remuneration.
    2. Government Policy Lending
    3. Government Debt Forgiveness to TUTRIC
    4. Government Debt Forgiveness and the Provision of Land to 
Starbright Pursuant to Its Change in Ownership
    5. Stamp Tax Exemption on Share Transfers under NTSR
    6. Tax Subsidies to FIEs in Specially Designated Geographic 
Areas, and Local Income Tax Exemption and Reduction Programs for 
``Productive'' FIEs
    7. VAT and Tariff Exemptions for FIEs and Certain Domestic 
Enterprises Using Imported Equipment in Encouraged Industries
    8. State Key Technology Renovation Project Fund
    B. Programs Determined To Be Not Countervailable
    C. Programs Determined To Not Confer a Benefit During the POI
    D. Programs Determined To Be Not Used
    E. Program Determined To Be Terminated
V. Analysis of Comments
    A. General Issues including Applicability of the CVD Law to the 
PRC, Cut-Off Date, and Double Remedies
    Comment A.1: Application of the CVD Law to Non-Market Economies, 
Including the PRC
    Comment A.2: Application of the CVD Law to the PRC is Consistent 
With the APA
    Comment A.3: Whether Simultaneous Application of CVD Law in This 
Investigation and NME Methodology in the Parallel Antidumping 
Investigation Imposes Double Trade Remedies
    Comment A.4: Whether December 11, 2001, is the Appropriate Date 
From Which the Department May Measure Subsidies in the PRC
    B. Attribution of Subsidies and Cross-Ownership
    Comment B.1: Attribution of Subsidies to, and Cross-Ownership 
of, TUTRIC/DCB
    C. Whether GTC and TUTRIC Are SOEs
    Comment C.1: Whether GTC Is an SOE
    Comment C.2: Whether TUTRIC Is an SOE
    D. Government Provision of Rubber for Less Than Adequate 
Remuneration
    Comment D.1: Whether the GOC's Provision of Rubber Is Specific
    Comment D.2: Whether the GOC's Provision of Rubber Confers a 
Financial Contribution
    Comment D.3: GOC Control of the Rubber Market
    Comment D.4: Purchases of SOE-Produced Rubber Through Private 
Trading Companies
    Comment D.5: Whether Imported Rubber Is Countervailable
    Comment D.6: Rubber Benchmark
    Comment D.7: Adjustments to Rubber Calculation
    E. Government Policy Lending and Government Debt Forgiveness
    Comment E.1: Specificity
    Comment E.2: SOCBs and Financial Contribution
    Comment E.3: Role of the GOC in the PRC Banking System and 
Whether To Use an Internal or External Benchmark
    Comment E.4: Issues Regarding Building an External Benchmark
    Comment E.5: Whether Government Policy Lending to GTC Is 
Countervailable
    Comment E.6: Whether There Was a Financial Contribution to 
TUTRIC
    Comment E.7: Whether TUTRIC's Loans From Certain Other Banks 
Were Forgiven
    F. Starbright-Specific Issues
    Comment F.1: Due Process
    Comment F.2: Application of Total Adverse Facts Available
    Comment F.3: Application of the CIO Methodology

[[Page 40485]]

    Comment F.4: The Arm's Length Nature of the Transaction
    Comment F.5: The Purchase of Hebei Tire's Assets Was for Fair 
Market Value
    Comment F.6: Whether Starbright Purchased ``Substantially All'' 
of Hebei Tire's Assets
    Comment F.7: Whether the Department Erred in Finding that Hebei 
Tire's Non-Recurring Subsidies Pass Through to Starbright
    Comment F.8: Whether Any Benefit Found by the Department Should 
Be Limited to the Difference Between the Appraised Value and the 
Value Paid
    Comment F.9: Debt Forgiveness--Unpaid Loans and Other Primary 
Debt
    Comment F.10: Debt Forgiveness--Loan Guarantee Obligations
    Comment F.11: The Countervailability of Starbright's Granted 
Land Use Rights
    Comment F.12: The Countervailability of Starbright's Land Leased 
From Local Villages
    Comment F.13: Submission of New Factual Information
    G. Other Countervailable Programs
    Comment G.1: Whether Non-Tradeable Share Reform (NTSR) Is 
Specific
    Comment G.2: Whether GTC Received a Benefit From the Transfer of 
Bonus Shares to Its Tradeable Shareholders Under NTSR
    Comment G.3: Whether GTC Received a Benefit From the GOC's 
Exemption of Stamp Taxes on Share Transfers Under NTSR
    Comment G.4: Whether GTC Received a Benefit From the GOC's 
Exemption of Income Taxes on Income Derived Under NTSR
    Comment G.5: FIE Tax Exemptions
    Comment G.6: Value Added Tax and Tariff Exemptions on Imported 
Equipment
    Comment G.7: State Key Technology Renovation Project Fund
    H. Government Provision of Land
    Comment H.1: Whether the GOC's Provision of Land Is a Financial 
Contribution
    Comment H.2: Cut-Off Date for Acquisition of Land-Use Rights
    Comment H.3: Whether the GOC's Provision of Land Is a Recurring 
Benefit
    Comment H.4: TUTRIC Land Countervailability
    Comment H.5: Whether the GOC's Provision of Land to TUTRIC and 
GTC Is Specific
    Comment H.6: Whether the GOC's Land-Use Rights System Operated 
on Market Principles During the POI
    Comment H.7: Land Benchmark
    I. Not Countervailable Programs
    Comment I.1: VAT Export Rebates
    J. Scope Comments
    Comment J.1: Imported Wheel Mounted Tires Certifications
    Comment J.2: OTR Agricultural Tires, Including for Highway-Towed 
Implements
    Comment J.3: Tubes and Flaps
    Comment J.4: Earthmoving, Mining, and Construction Tires
VI. Recommendation

[FR Doc. E8-16154 Filed 7-14-08; 8:45 am]
BILLING CODE 3510-DS-P