[Federal Register Volume 73, Number 136 (Tuesday, July 15, 2008)]
[Notices]
[Pages 40485-40492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16156]


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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: Final Affirmative Determination of Sales at Less 
Than Fair Value and Partial Affirmative Determination of Critical 
Circumstances

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: July 15, 2008.
SUMMARY: On February 20, 2008, the Department of Commerce (the 
``Department'') published its preliminary determination of sales at 
less than fair value (``LTFV'') in the antidumping investigation of 
certain new pneumatic off-the-road tires (``OTR tires'') from the 
People's Republic of China (``PRC''). The period of investigation 
(``POI'') is October 1, 2006, to March 31, 2007. We invited interested 
parties to comment on our preliminary determination of sales at LTFV 
and the post-preliminary determinations. Based on our analysis of the 
comments we received, we have made changes to our calculations for the 
mandatory respondents. We determine that OTR tires from the PRC are 
being, or are likely to be, sold in the United States at LTFV as 
provided in section 735 of the Tariff Act of 1930, as amended (``the 
Act''). The estimated margins of sales at LTFV are shown in the ``Final 
Determination Margins'' section of this notice.

FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian or Charles Riggle, 
AD/CVD Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
6412 or (202) 482-0650, respectively.

SUPPLEMENTARY INFORMATION:

Case History

    The Department published its preliminary determination of sales at 
LTFV on February 20, 2008. 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 (February 20, 2008) (``Preliminary Determination''). The 
Department issued a ministerial error allegation memorandum, in which 
it agreed to correct several ministerial errors for the final 
determination. See Memorandum entitled ``Preliminary Determination of 
Antidumping Duty Investigation on Certain New Pneumatic Off-The-Road 
Tires from the People's Republic of China: Allegations of Ministerial 
Errors,'' dated March 28, 2008 (``Ministerial Error Memo''). On April 
21, 2008, the Department published an affirmative preliminary 
determination of critical circumstances. See Certain New Pneumatic Off-
The-Road Tires from the People's Republic of China: Affirmative 
Preliminary Determination of Critical Circumstances, 73 FR 21312, 
(April 21, 2008), (``Affirmative Preliminary Determination of Critical 
Circumstances'').
    Between March 25 and April 25, 2008, the Department conducted 
verifications of Starbright,\1\ Tianjin United Tire & Rubber 
International Co., Ltd. (``TUTRIC''),\2\ Xugong,\3\ and Guizhou Tyre 
Co., Ltd. (``Guizhou Tyre'').\4\ See the ``Verification'' section below 
for additional information.
---------------------------------------------------------------------------

    \1\ See Verification of the Factors Response of Hebei Starbright 
Co., Ltd. in the Antidumping Duty Investigation of Certain New 
Pneumatic Off-The-Road Tires from the People's Republic of China, 
dated May 5, 2008 (``Starbright Verification Report''); and 
Verification of Constructed Export Sales (``CEP'') for Hebei 
Starbright Tire Co., Ltd. (``Starbright'') at GPX International Tire 
Corporation (``GPX7rdquo;), dated May 15, 2008 (``Starbright CEP 
Verification Report'').
    \2\ See Verification of the Sales and Factors Response of TUTRIC 
in the Antidumping Investigation of Certain New Pneumatic Off-The-
Road Tires from the People's Republic of China, dated May 2, 2008 
(``TUTRIC Verification Report'').
    \3\ See Verification of the Sales and Factors Response of Xuzhou 
Xugong Tyres Co., Ltd. in the Antidumping Duty Investigation of 
Certain New Pneumatic Off-The-Road Tires from the People's Republic 
of China dated May 12, 2008 (``Xugong Verification Report'').
    \4\ See Verification of the Sales and Factors Response of 
Guizhou Tyre in the Antidumping Investigation of Certain New 
Pneumatic Off-The-Road Tires from the People's Republic of China 
dated May 9, 2008 (``Guizhou Tyre Verification Report'').
---------------------------------------------------------------------------

    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'').
    The Department issued a post-preliminary determination on May 19, 
2008, in which it applied a new targeted dumping methodology. See 
Memorandum entitled ``Post-Preliminary Determinations on Targeted

[[Page 40486]]

Dumping,'' dated May 19, 2008 (``Targeted Dumping Determination'').
    On May 19, 2008, the Department also preliminarily granted 
separate-rate status to two separate rate applicants, Qingdao Aonuo 
Tyre Co., Ltd. (``Aonuo'') and Kenda Rubber (China) Co., Ltd. (``Kenda 
China''). See Memorandum entitled ``Preliminary Determination of 
Separate-Rate Status of Qingdao Aonuo Tyre Co., Ltd. and Kenda Rubber 
(China) Co., Ltd. in the Antidumping Investigation of Certain New 
Pneumatic Off-the-Road Tires from the People's Republic of China,'' 
dated May 19, 2008.
    We invited interested parties to comment on the Preliminary 
Determination, Affirmative Preliminary Determination of Critical 
Circumstances, and the post-preliminary scope, targeted dumping, and 
separate rate determinations. On May 22, 2008, multiple interested 
parties filed case briefs with respect to the scope of the AD and 
concurrent countervailing duty (CVD) proceeding. On May 27, 2008, many 
of these same parties filed rebuttal comments regarding the scope of 
these two proceedings. In addition, on May 27, 2008, multiple 
interested parties filed case briefs with respect to issues specific to 
the AD proceeding. These same parties filed rebuttal briefs on June 2, 
2008. The Department held two hearings on June 12, 2008, one solely 
related to the scope of the AD and CVD proceedings and the second to 
address issues related solely to the AD investigation.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by Starbright, Guizhou Tyre, TUTRIC, and Xugong 
for use in our final determination. See the Department's verification 
reports on the record of this investigation in the Central Records Unit 
(``CRU''), Room 1117 of the main Department building, with respect to 
these entities. For all verified companies, we used standard 
verification procedures, including examination of relevant accounting 
and production records, as well as original source documents provided 
by respondents.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Investigation of Certain New 
Pneumatic Off-The-Road Tires from the People's Republic of China: 
Issues and Decision Memorandum,'' dated concurrently with this notice 
and, which is hereby adopted by this notice (``Issues and Decision 
Memorandum''). A list of the issues which parties raised and to which 
we respond in the Issues and Decision Memorandum is attached to this 
notice as Appendix II. The Issues and Decision Memorandum is a public 
document and is on file in the CRU, and is accessible on the Web at 
ia.ita.doc.gov/frn. The paper copy and electronic version of the 
memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our analysis of information on the record of this 
investigation, we have made changes to the margin calculations for the 
final determination for all mandatory respondents.

General Issues

     We have updated the wholesale price index adjustor for the 
POI, which modified the inflated values for steam, water, electricity, 
brokerage and handling, marine insurance, and truck freight rate. See 
``Certain New Pneumatic Off-The-Road Tires from the People's Republic 
of China: Surrogate Value Memorandum,'' dated July 7, 2008 (``Final SV 
Memo'').
     We have corrected linking errors in the inflator 
adjustments for marine insurance and Essar Steel's brokerage and 
handling. See Final SV Memo.
     We corrected an averaging error in the calculation of the 
surrogate value for water. See Final SV Memo.
     We corrected the rail rate used in the company-specific 
rail freight to be based on metric ton. See Analysis Memorandum for the 
Final Determination: Xuzhou Xugong Tyres Co., Ltd. (``Xugong''), dated 
July 7, 2008 (``Xugong Final Analysis Memo'') and Analysis Memorandum 
for the Final Determination: Guizhou Tyre and its affiliates, dated 
July 7, 2008 (``Guizhou Tyre Final Analysis Memo'').
     We have updated the PRC labor wage rate. See Final SV 
Memo.
     We have used the following four financial statements to 
calculate the surrogate financial ratios: CEAT Limited (``Ceat''); 
Falcon Tyres Ltd. (``Falcon''); Goodyear India Limited (``Goodyear''); 
and TVS Srichakra (``TVS''). See Comments 17.A and 17.B in the Issues 
and Decision Memo dated concurrently with this notice.
     We have valued steam using the natural gas price reported 
in a May 2005 publication of Financial Express. We have inflated the 
resulting steam value by applying the appropriate WPI inflator.
     We have made the following changes to the surrogate 
financial ratio calculations:
    [ctrcir]CEAT: 1) We treated a) Sale of Scrap and b) Miscellaneous 
income as SG&A and 2) we excluded Rebates and Discounts from the 
surrogate ratio calculations. See Final SV Memo, and Issues and 
Decision Memorandum at Comments 18.B and 18.C.
    [ctrcir]Falcon: 1) We treated a) Sale of Scrap and b) Miscellaneous 
income as SG&A and 2) we excluded Discount from the surrogate ratio 
calculations. See Final SV Memo and Issues and Decision Memorandum at 
Comments 18.B and 18.C.
    [ctrcir]Goodyear: 1) We treated a) Scrap Sale, b) One time 
settlement from vendor(s), and c) Unidentified Miscellaneous Income as 
SG&A 2) we excluded Target Plus Export Incentives from the surrogate 
ratio calculations; 3) we treated Retirement Gratuities as direct 
labor; and 4) we included Purchase of Finished Goods in the denominator 
of Goodyear's SG&A and profit ratio calculations. See Final SV Memo, 
and Ministerial Error Memorandum, and Issues and Decision Memorandum at 
Comments 18.B and 18.G.
    [ctrcir]TVS: 1) We treated a) Miscellaneous Sales and b) 
Miscellaneous Income as part of SG&A and 2) we treated Gratuity as 
direct labor. See Final SV Memo and Issues and Decision Memorandum at 
Comment 18.B and 18.G.
     We have revised the calculation of U.S. price for Guizhou 
Tyre and Starbright to include a deduction for warehousing expenses 
based on the average days subject merchandise is in inventory. See 
Final SV Memo, Guizhou Tyre Final Analysis Memo, and Starbright Final 
Analysis Memo.

Company-Specific Changes Since the Preliminary Determination

    Xugong: See Xugong Final Analysis Memo.
    Guizhou Tyre: See Guizhou Tyre Final Analysis Memo.
    Starbright: See Analysis Memorandum for the Final Determination: 
Hebei Starbright Co., Ltd., dated July 7, 2008.
    TUTRIC: See Analysis Memorandum for the Final Determination: 
Tianjin United Tire & Rubber International

[[Page 40487]]

Co., Ltd., dated July 7, 2008.

Scope of 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 a post-preliminary scope determination. 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 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.

Targeted Dumping

    We have analyzed the case and rebuttal briefs with respect to 
targeted dumping issues submitted for the record in this investigation. 
As a result of our analysis, we made certain changes in the targeted 
dumping test we applied for purposes of the final determination. These 
changes result in a finding of targeted dumping for Xugong, but not for 
Guizhou Tyre, Starbright, and TUTRIC. For further discussion, see 
Comments 23.A through 23.H in the Issues and Decision Memorandum. As 
indicated below, for Guizhou Tyre, Starbright, and TUTRIC, we continue 
to find overall dumping margins above de minimis. See Guizhou Tyre 
Final Analysis Memo, Starbright Final Analysis Memo, and TUTRIC Final 
Analysis Memo, respectively. Further, as indicated below, we find that 
Xugong's overall margin is zero. See Xugong Final Analysis Memo.

Surrogate Country

    In the Preliminary Determination, we stated that we had selected 
India as the appropriate surrogate country to use in this investigation 
for the following reasons: (1) it is a significant producer of 
comparable merchandise; (2) it is at a similar level of economic 
development comparable to that of the PRC; and (3) we have reliable 
data from India that we can use to value the factors of production. See 
Preliminary Determination. For the final determination, we received no 
comments and made no changes to our findings with respect to the 
selection of a surrogate country.

Separate Rates

    In proceedings involving non-market-economy (``NME'') countries, 
the Department begins with a rebuttable presumption that all companies 
within the country are subject to government control and, thus, should 
be assigned a single antidumping duty deposit rate. It is the 
Department's policy to assign all exporters of merchandise subject to 
an investigation in an NME country this single rate unless an exporter 
can demonstrate that it is sufficiently independent so as to be 
entitled to a separate rate. See Final Determination of Sales at Less 
Than Fair Value: Sparklers from the People's Republic of China, 56 FR 
20588 (May 6, 1991) (``Sparklers''), as amplified by Notice of Final 
Determination of Sales at Less Than Fair Value: Silicon Carbide from 
the People's Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon 
Carbide''), and 19 CFR 351.107(d).
    In the Preliminary Determination, we found that Starbright, Guizhou 
Tyre, TUTRIC, Xugong and 23 separate rate-applicants demonstrated their 
eligibility for separate-rate status (collectively, ``Separate-Rate 
Recipients''). On May 19, 2008, as discussed above, we granted 
separate-rate status to two additional applicants, Aonuo and Kenda 
China; thus, they are now part of the pool of Separate-Rate Recipients. 
For the final determination, we continue to find that the evidence 
placed on the record of this investigation by Starbright, Guizhou Tyre, 
TUTRIC, Xugong and the remaining Separate Rate Recipients demonstrate 
both a de jure and de facto absence of government control, with respect 
to their respective exports of the merchandise under investigation, 
and, thus are eligible for separate rate status.
    Additionally, based on comments received from certain Separate Rate 
Recipients, and a review of the record, we found that the combination 
rates or the spelling of names for certain exporters were not properly 
included in the Preliminary Determination. Because these errors pertain 
to the identification of the proper separate rates recipients for this 
investigation, the Department is making these corrections effective as 
of February 20, 2008, the date of the Preliminary Determination. The 
companies whose names have been corrected are identified with an ``='' 
in the ``Final Determination Margins'' section, below. Any liquidation 
instructions for the provisional measures period will reflect these 
corrections.

Use of Facts Available

    Section 776(a)(2) of the Act, provides that, if an interested 
party: (A) withholds information that has been requested by the 
Department; (B) fails to provide such information in a timely manner or 
in the form or manner requested subject to sections 782(c)(1) and (e) 
of the Act; (C) significantly impedes a proceeding under the 
antidumping statute; or (D) provides such information but the 
information cannot be verified, the Department shall, subject to 
subsection 782(d) of the Act, use facts otherwise available in reaching 
the applicable determination.
    Section 782(c)(1) of the Act provides that if an interested party 
``promptly after receiving a request from {the Department{time}  for 
information, notifies {the Department{time}  that such party is unable 
to submit the information requested in the requested form and manner, 
together with a full explanation and suggested alternative forms in 
which such party is able to submit the information,'' the Department 
may modify the requirements to avoid imposing an unreasonable burden on 
that party.
    Section 782(d) of the Act provides that, if the Department 
determines that a response to a request for information does not comply 
with the request, the Department will inform the person submitting the 
response of the nature of the deficiency and shall, to the extent 
practicable, provide that person the opportunity to remedy or explain 
the deficiency. If that person submits further information that 
continues to be unsatisfactory, or this information is not submitted 
within the applicable time limits, the Department may, subject to 
section 782(e), disregard all or part of the original and subsequent 
responses, as appropriate.
    Section 782(e) of the Act states that the Department shall not 
decline to consider information deemed ``deficient'' under section 
782(d) if: (1) the information is submitted by the

[[Page 40488]]

established deadline; (2) the information can be verified; (3) the 
information is not so incomplete that it cannot serve as a reliable 
basis for reaching the applicable determination; (4) the interested 
party has demonstrated that it acted to the best of its ability; and 
(5) the information can be used without undue difficulties.
    Furthermore, section 776(b) of the Act states that if the 
Department ``finds that an interested party has failed to cooperate by 
not acting to the best of its ability to comply with a request for 
information from the administering authority or the Commission, the 
administering authority or the Commission ..., in reaching the 
applicable determination under this title, may use an inference that is 
adverse to the interests of that party in selecting from among the 
facts otherwise available.'' See also Statement of Administrative 
Action (SAA) accompanying the Uruguay Round Agreements Act (URAA), H.R. 
Rep. No. 103-316, Vol. 1 at 870 (1994).
    For this final determination, in accordance with sections 
773(c)(3)(A) and (B) of the Act and section s776(a)(2)(A), (B) and (D) 
and 776(b) of the Act, we have determined that the use of adverse facts 
available (``AFA'') is warranted for the PRC entity, as discussed 
below.

The PRC-Wide Rate

    Because we begin with the presumption that all companies within an 
NME country are subject to government control and because only the 
companies listed under the ``Final Determination Margins'' section 
below have overcome that presumption, we are applying a single 
antidumping rate - the PRC-wide rate - to all other exporters of 
subject merchandise from the PRC. See, e.g., Synthetic Indigo from the 
People's Republic of China: Notice of Final Determination of Sales at 
Less Than Fair Value, 65 FR 25706 (May 3, 2000). The PRC-wide rate 
applies to all entries of subject merchandise except for entries from 
the respondents identified as receiving a separate rate in the ``Final 
Determination Margins'' section below. In the Preliminary 
Determination, the Department found that the PRC-wide entity did not 
respond to our requests for information because record evidence 
indicates there were more exporters of OTR tires from the PRC during 
the POI than those that responded to the Q&V questionnaire or the full 
antidumping questionnaire. Therefore, in the Preliminary Determination 
we treated these PRC producers/exporters as part of the PRC-wide entity 
because they did not demonstrate that they operate free of government 
control over their export activities. No additional information was 
placed on the record with respect to these entities after the 
Preliminary Determination. In addition, because the PRC-wide entity has 
not provided the Department with the requested information; pursuant to 
section 776(a)(2)(A) and (C) of the Act, the Department continues to 
find that the use of facts available is appropriate to determine the 
PRC-wide rate. Section 776(b) of the Act provides that, in selecting 
from among the facts otherwise available, the Department may employ an 
adverse inference if an interested party fails to cooperate by not 
acting to the best of its ability to comply with requests for 
information. See Notice of Final Determination of Sales at Less Than 
Fair Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel 
Products from the Russian Federation, 65 FR 5510, 5518 (February 4, 
2000). See also, SAA at 870. We have determined that, because the PRC-
wide entity did not respond to our request for information, it has 
failed to cooperate to the best of its ability. Therefore, the 
Department finds that, in selecting from among the facts otherwise 
available, an adverse inference is warranted.

Corroboration

    Section 776(c) of the Act provides that, when the Department relies 
on secondary information in using the facts otherwise available, it 
must, to the extent practicable, corroborate that information from 
independent sources that are reasonably at its disposal. We have 
interpreted ``corroborate'' to mean that we will, to the extent 
practicable, examine the reliability and relevance of the information 
submitted. See Notice of Final Determination of Sales at Less Than Fair 
Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products 
From Brazil, 65 FR 5554, 5568 (February 4, 2000); see, e.g., Tapered 
Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan, 
and Tapered Roller Bearings, Four Inches or Less in Outside Diameter, 
and Components Thereof, From Japan; Preliminary Results of Antidumping 
Duty Administrative Reviews and Partial Termination of Administrative 
Reviews, 61 FR 57391, 57392 (November 6, 1996).
    At the Preliminary Determination, in accordance with section 776(c) 
of the Act, we corroborated our adverse facts available (``AFA'') 
margin by comparing the U.S. prices and normal values from the petition 
to the U.S. price and normal values for the respondents. See Memorandum 
``Corroboration of the PRC-Wide Facts Available Rate for the 
Preliminary Determination,'' dated February 5, 2008. Similarly, for the 
final determination, we have also compared the U.S. prices and normal 
values from the petition to the U.S. prices and normal values for the 
respondents. We found that the U.S. prices and normal values used to 
calculate the petition margin were within the range of net U.S. prices 
and normal values, respectively, used in our margin calculations for 
the mandatory respondents in this investigation.
    Because no parties commented on the selection of the PRC-wide rate, 
we continue to find that the margin of 210.48 percent has probative 
value. Accordingly, we find that the rate of 210.48 percent is 
corroborated within the meaning of section 776(c) of the Act.

Critical Circumstances

    In the Preliminary Determination, we found that critical 
circumstances exist for the PRC entity, however, we did not find that 
critical circumstances exist with respect to the mandatory respondents 
or the Separate Rate Recipients. We continue to find that critical 
circumstances exist for the PRC entity, and we continue to find that 
critical circumstances do not exist for the mandatory respondents or 
the remaining Separate Rate Recipients. See Issues and Decision 
Memorandum at Comment 24.

Final Determination Margins

    We determine that the following percentage weighted-average margins 
exist for the POI:

[[Page 40489]]



                                             OTR Tires from the PRC
----------------------------------------------------------------------------------------------------------------
                                                                                                    Weighted-
           Exporter                                         Producer                              Average Margin
                                                                                                    (Percent)
----------------------------------------------------------------------------------------------------------------
Guizhou Tyre Co., Ltd.[ast]...  Guizhou Advance Rubber.........................................           4.08
Guizhou Tyre Co., Ltd.[ast]...  Guizhou Tyre Co., Ltd..........................................           4.08
Hebei Starbright Co., Ltd./GPX  Hebei Starbright Co., Ltd......................................          19.15
 International Tire
 Corporation, Ltd. [and].
Tianjin United Tire & Rubber    Tianjin United Tire & Rubber International Co., Ltd.                      8.09
 International Co., Ltd.         (``TUTRIC'').
 (``TUTRIC'')[ast].
Xuzhou Xugong Tyres Co., Ltd.   Xuzhou Xugong Tyres Co., Ltd. =................................           0.00
 [ast] =.
Aeolus Tyre Co., Ltd. [ast]...  Aeolus Tyre Co., Ltd...........................................           9.48
Double Coin Holdings Ltd.       Double Coin Holdings Ltd.......................................           9.48
 [ast].
Double Coin Holdings Ltd.       Double Coin Group Rugao Tyre Co., Ltd..........................           9.48
 [ast].
Double Coin Holdings Ltd.       Double Coin Group Shanghai Donghai Tyre Co., Ltd...............           9.48
 [ast].
Double Happiness Tyre           Double Happiness Tyre Industries Corp., Ltd....................           9.48
 Industries Corp., Ltd. [ast].
Jiangsu Feichi Co., Ltd. [ast]  Jiangsu Feichi Co., Ltd........................................           9.48
Kenda Rubber (China) Co., Ltd./ Kenda Rubber (China) Co., Ltd..................................           9.48
 Kenda Global Holding Co., Ltd
 (Cayman Islands).
KS Holding Limited [and]......  Oriental Tyre Technology Ltd...................................           9.48
KS Holding Limited [and]......  Shandong Taishan Tyre Co., Ltd.................................           9.48
KS Holding Limited [and]......  Xu Zhou Xugong Tyres Co., Ltd..................................           9.48
Laizhou Xiongying Rubber        Laizhou Xiongying Rubber Industry Co., Ltd.....................           9.48
 Industry Co., Ltd. [ast].
Oriental Tyre Technology        Midland Off the Road Tire Co., Ltd.............................           9.48
 Limited +.
Oriental Tyre Technology        Midland Specialty Tire Co., Ltd................................           9.48
 Limited +.
Oriental Tyre Technology        Xuzhou Hanbang Tyres Co., Ltd..................................           9.48
 Limited +.
Qingdao Aonuo Tyre Co., Ltd...  Qingdao Aonuo Tyre Co., Ltd....................................           9.48
Qingdao Etyre International     Shandong Xingda Tyre Co. Ltd...................................           9.48
 Trade Co., Ltd. [ast].
Qingdao Etyre International     Shandong Xingyuan International Trade Co. Ltd..................           9.48
 Trade Co., Ltd. [ast].
Qingdao Etyre International     Shandong Xingyuan Rubber Co. Ltd...............................           9.48
 Trade Co., Ltd. [ast].
Qingdao Free Trade Zone Full-   Qingdao Eastern Industrial Group Co., Ltd......................           9.48
 World International Trading
 Co., Ltd. [ast].
Qingdao Free Trade Zone Full-   Qingdao Qihang Tyre Co., Ltd...................................           9.48
 World International Trading
 Co., Ltd. [ast].
Qingdao Free Trade Zone Full-   Qingdao Shuanghe Tyre Co., Ltd.................................           9.48
 World International Trading
 Co., Ltd. [ast].
Qingdao Free Trade Zone Full-   Qingdao Yellowsea Tyre Factory.................................           9.48
 World International Trading
 Co., Ltd. [ast].
Qingdao Free Trade Zone Full-   Shandong Zhentai Tyre Co., Ltd.................................           9.48
 World International Trading
 Co., Ltd. [ast].
Qingdao Hengda Tyres Co., Ltd.  Qingdao Hengda Tyres Co., Ltd..................................           9.48
 [ast].
Qingdao Milestone Tyre Co.,     Qingdao Shuanghe Tyre Co., Ltd.................................           9.48
 Ltd.[ast].
Qingdao Milestone Tyre Co.,     Shandong Zhentai Tyre Co., Ltd.................................           9.48
 Ltd.[ast].
Qingdao Milestone Tyre Co.,     Shifeng Double-Star Tire Co., Ltd..............................           9.48
 Ltd.[ast].
Qingdao Milestone Tyre Co.,     Weifang Longtai Tyre Co., Ltd..................................           9.48
 Ltd.[ast].
Qingdao Qihang Tyre Co., Ltd.   Qingdao Qihang Tyre Co., Ltd...................................           9.48
 [ast].
Qingdao Qizhou Rubber Co.,      Qingdao Qizhou Rubber Co., Ltd.................................           9.48
 Ltd. [ast].
Qingdao Sinorient               Qingdao Hengda Tyres Co., Ltd..................................           9.48
 International Ltd. [ast].
Qingdao Sinorient               Shifeng Double-Star Tire Co., Ltd..............................           9.48
 International Ltd. [ast].
Qingdao Sinorient               Tengzhou Broncho Tyre Co., Ltd.=...............................           9.48
 International Ltd. [ast].
Shandong Huitong Tyre Co.,      Shandong Huitong Tyre Co., Ltd.................................           9.48
 Ltd. [ast].
Shandong Jinyu Tyre Co., Ltd.   Shandong Jinyu Tyre Co., Ltd...................................           9.48
 [ast].
Shandong Taishan Tyre Co.,      Shandong Taishan Tyre Co., Ltd. =..............................           9.48
 Ltd. [ast]=.
Shandong Wanda Boto Tyre Co.,   Shandong Wanda Boto Tyre Co., Ltd..............................           9.48
 Ltd.[ast].
Shandong Xingyuan               Shangdong Xingda Tyre Co., Ltd.................................           9.48
 International Trading Co.,
 Ltd. [ast].
Shandong Xingyuan               Xingyuan Tyre Group Co., Ltd...................................           9.48
 International Trading Co.,
 Ltd. [ast].
Techking Tires Limited [ast]=.  Shandong Xingda Tyre Co. Ltd...................................           9.48
Techking Tires Limited [ast]=.  Shandong Xingyuan International Trade Co. Ltd..................           9.48
Techking Tires Limited [ast]=.  Shandong Xingyuan Rubber Co. Ltd...............................           9.48
Triangle Tyre Co., Ltd. [ast].  Triangle Tyre Co., Ltd.........................................           9.48
Wendeng Sanfeng Tyre Co.,       Wendeng Sanfeng Tyre Co., Ltd..................................           9.48
 Ltd.[ast].
Zhaoyuan Leo Rubber Co., Ltd.   Zhaoyuan Leo Rubber Co., Ltd...................................           9.48
 [ast].
PRC-Entity....................  ...............................................................         210.48
----------------------------------------------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all imports of subject merchandise entered or 
withdrawn from warehouse, for consumption on or after the following 
dates: (1) for Starbright, TUTRIC, Guizhou Tyre and the separate rate 
companies, on or after February 20, 2008, the date of publication of 
the Preliminary Determination in the Federal Register, (2) for the PRC-
wide entity, on or after November 22, 2007, which is 90 days prior to 
the publication of the Preliminary Determination (consistent with our 
finding that critical circumstances exist for the PRC-wide entity). We 
will instruct CBP to continue to require a cash deposit or the posting 
of a bond for all companies based on the estimated weighted-average 
dumping margins shown above. The suspension of

[[Page 40490]]

liquidation instructions will remain in effect until further notice.
    Because the Department found that the weighted-average dumping 
margin for subject merchandise produced and exported by Xugong is zero, 
we are instructing CBP to terminate suspension of liquidation of all 
imports of subject merchandise produced and exported by Xugong, 
entered, or withdrawn from warehouse, for consumption on or after 
February 20, 2008, the date of publication of the Preliminary 
Determination. CBP shall refund any cash deposit and release any bond 
or other security previously posted in connection with merchandise 
produced and exported by Xugong. These suspension of liquidation 
instructions will remain in effect until further notice.

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our final determination of 
sales at LTFV. As our final determination is affirmative, in accordance 
with section 735(b)(2) of the Act, within 45 days the ITC will 
determine whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports or sales (or the likelihood of sales) for importation of the 
subject merchandise. If the ITC determines that material injury or 
threat of material injury does not exist, the proceeding will be 
terminated and all securities posted will be refunded or canceled. If 
the ITC determines that such injury does exist, the Department will 
issue an antidumping duty order directing CBP to assess antidumping 
duties on all imports of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding APO

    This notice also serves as a reminder to the parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of an APO is a sanctionable violation.
    This determination and notice are issued and published in 
accordance with sections 735(d) and 777(i)(1) of the Act.

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

Appendix I

Scope of the Proceeding Antidumping and Countervailing Duty 
Investigations On Off-The-Road Tires from the PRC

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,\5\ combine 
harvesters,\6\ agricultural high clearance sprayers,\7\ industrial 
tractors,\8\ log-skidders,\9\ agricultural implements, highway-towed 
implements, agricultural logging, and agricultural, industrial, skid-
steers/mini-loaders;\10\ (2) construction vehicles and equipment, 
including earthmover articulated dump products, rigid frame haul 
trucks,\11\ front end loaders,\12\ dozers,\13\ lift trucks, straddle 
carriers,\14\ graders,\15\ mobile cranes,\16\ 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.\17\ 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. 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\18\ 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,

[[Page 40491]]

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.
---------------------------------------------------------------------------

    \5\ 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.
    \6\ Combine harvesters are used to harvest crops such as corn or 
wheat.
    \7\ Agricultural sprayers are used to irrigate agricultural 
fields
    \8\ 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.
    \9\ 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.
    \10\ 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.
    \11\ 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.
    \12\ 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.
    \13\ 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.
    \14\ 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.
    \15\ 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.
    \16\ i.e., ``on-site'' mobile cranes designed for off-highway 
use.
    \17\ 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.
    \18\ 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).
---------------------------------------------------------------------------

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

I. General Issues

Comment 1: Whether the Department Should Apply Market-Economy 
Calculation Methodologies in this Investigation
Comment 2: Whether the Dual Application of the Non-Market Economy AD 
Methodology and the Market-Economy CVD Methodology Results in Double 
Remedies
Comment 3: Treatment of Corrections from Verifications
Comment 4: Ministerial Error Corrections
Comment 5: Wage Rate Methodology
Comment 6: Adjustment for Un-refunded Value Added Taxes
Comment 7: Treatment of Respondents' Packing Labor

General Surrogate Value Issues

Comment 8: Standard for Accepting Respondents' Proposed HTS Categories
Comment 9: Treatment of Aberrational Data in Certain Surrogate Values
Comment 10: Reliability of Infodrive India Data
    Comment 11: Surrogate Value Source for Steam
Comment 12: Natural Rubber Surrogate Value
Comment 13: Steam Coal Surrogate Value
Comment 14: Carbon Black Surrogate Value
Comment 15: Surrogate Value Source for Electricity
Comment 16: Use of Electricity-Specific Inflation Index

Surrogate Financial Statements

Comment 17: Selection of Surrogate Financial Statements
Comment 17.A: Use of Financial Statements of Surrogate Companies That 
May Have Received Government Subsidies
Comment 17.B: Use of TVS's Financial Statement
Comment 18: Calculation of Surrogate Financial Ratios
Comment 18.A: Treatment of Rental Receipts in TVS's Financial Statement
Comment 18.B: Treatment of ``Miscellaneous Income'' in Goodyear's 
Financial Statements
Comment 18.C: Treatment of Discounts and Rebates in the SG&A Ratio 
Calculation based on CEAT's Financial Statement
Comment 18.D: Offset for Interest Revenue in Goodyear's Financial 
Statement
Comment 18.E: Treatment of ``Less transfer from revaluation reserve'' 
in Falcon's Financial Statement
Comment 18.F: Treatment of ``Conversion Charges'' in CEAT, Falcon, and 
Goodyear's Financial Statements
Comment 18.G: Treatment of ``Labor Costs'' in CEAT, Falcon, Goodyear 
and TVS's Financial Statements
Comment 18.H: Treatment of Non-Production-Related Energy and Utility 
Consumption

II. Scope Issues

Comment 19: Imported Wheel Mounted Tires Certifications
Comment 20: OTR Agricultural Tires, Including for Highway-Towed 
Implements
Comment 21: Tubes and Flaps
Comment 22: Earthmoving, Mining, and Construction Tires

III. Targeted Dumping Issues

Comment 23:Targeted Dumping
Comment 23.A: Whether the Department Should Reject the Targeted Dumping 
Allegation Filed by Bridgestone
Comment 23.B: Whether the Targeted Dumping Test Used by the Department 
is Flawed and Should be Replaced
Comment 23.C: Whether the Department Should Use the ``P/2 Test'' to 
Test for Targeted Dumping
Comment 23.D: Whether the Department Should Use the ``T-Test'' to Test 
for Targeted Dumping
Comment 23.E: If the Department Continues to Use its Nails Test, 
Whether it Should Permit Certain Margins to be Offset with Negative 
Margins
Comment 23.F: Treatment of Xugong's Sales
Comment 23.G: Programming Errors
Comment 23.H: Changes based on TD Methodology

IV. Critical Circumstances

Comment 24: Critical Circumstances

V. Issues Specific to Guizhou Tyre

Comment 25: Guizhou Tyre's Eligibility for a Separate Rate
Comment 26: Treatment of Guizhou Tyre's Guangzhou Warehouse Expenses
Comment 27: Treatment of Guizhou Tyre's Reported Manufacturing Overhead 
Materials
Comment 28: Calculation of Guizhou Tyre's Domestic Movement Expenses
Comment 29: Treatment of Guizhou Tyre's Demurrage Charge
Comment 30: Distance from Guizhou Tyre's Factory to the Guangzhou 
Warehouse

[[Page 40492]]

Comment 31: Appropriate Unit of Measure for Guizhou Tyre's Reported 
Water Consumption
Comment 32: Treatment of Guizhou Tyre's Unreported Labor Hours 
Discovered at Verification
Comment 33: Classification of Guizhou Tyre's Sales Made to a Certain 
U.S. Customer
Comment 34: Byproduct Offset for Guizhou Tyre
Comment 35: Treatment of Guizhou Tyre's International Freight Costs
Comment 36: Appropriate Classification for Certain Guizhou Tyre 
Material Inputs
Comment 37: Calculation of Value of Guizhou Tyre's Carbon Black
Comment 38: Treatment of Guizhou Tyre's Sales Made Through TED
Comment 39: Whether to Include Licenses and Taxes in Guizhou Tyre's 
Indirect Selling Expense Ratio
Comment 40: Treatment of Guizhou Tyre's Billing Adjustment for Tubes 
and Flaps

VI. Issues Specific to Xugong

Comment 41: Treatment of Xugong and Its Chinese Affiliates as a Single 
Entity
Comment 42: Treatment of Xugong's Sales to API
Comment 43: Use of Xugong's Upstream Inputs
Comment 43.A: Rejection of Armour Rubber's Upstream Inputs
Comment 43.B: Adjustments of Xugong's Upstream Inputs
Comment 44: Valuation of Xugong's FOPs from Intermediate Inputs 
Database
Comment 45: Valuation of Xugong's FOPs from Upstream Inputs Database
Comment 46: Treatment of Sales with Improperly Reported Tread Code
Comment 47: Treatment of Xugong's Factor as Wood Tar or Pine Oil

VII. Issues Common to Starbright and TUTRIC

Comment 48.A: Whether TUTRIC and GPX are Affiliated
Comment 48.B: Whether TUTRIC and Starbright Should be Collapsed
Comment 49: Surrogate Value Sources for Scrap Rubber, Reclaimed Rubber, 
Rubber Powder and Wire
Comment 50: The Application of AFA for Sales of Tires Greater Than 39 
Inches for Starbright and TUTRIC

VIII. Issues Specific to Starbright

Comment 51: Start-Up Adjustment for Starbright
Comment 52: Starbright Argues that the Department Should Adjust Normal 
Value for a CEP Offset and Differences in Circumstances of Sale
Comment 53: Investigation of Starbright's Sales Below Cost Should the 
Department Determines that Starbright Warrants MOE Treatment
Comment 54: Treatment of Unreported Sales of Subject Merchandise
Comment 55: Reliability of Starbright's Reported U.S. Sales Prices
Comment 56: Treatment of Starbright's Early Payment Discounts
Comment 57: Treatment of Tanggu Warehouse Expenses as an Adjustment to 
U.S. Price
Comment 58: Minor Correction to Freight-In Expenses
Comment 59: The Nature of WARR2U
Comment 60: Expenses Included in U.S. Duty
Comment 61: U.S. Warehousing Expenses
Comment 62: Dutiable Assists
Comment 63: Direct Labor Hours
Comment 64: Starbright's Indirect Labor Hours
Comment 65: Ministerial Errors With Respect to U.S. Credit Expenses
Comment 66: Marine Insurance
Comment 67: Correct Names for Certain Separate Rates Parties for 
Customs Instructions
Comment 68: Time Period for Measuring Starbright's U.S. Indirect 
Selling Expenses
Comment 69: Inclusion of Post-POI Credit Notes in the Section C 
Database
Comment 70: Purchases of Market-Economy Inputs from PRC Trading 
Companies as Market Economy Purchases
Comment 71: Allocation Methodology for U.S. Indirect Selling Expenses
Comment 72: Expenses Excluded from the Calculation of ISE
Comment 73: Starbright's U.S. Inland Freight Expense
Comment 74: The Adequacy of Starbright's Reported Material Consumption 
Standards, Variance Calculations and FOP Consumption Rate
Comment 75: Market-Economy Methodology for Starbright
Comment 76: Time Period For Determining ICC For Starbright's Retail 
Stores

IX. Issues Specific to TUTRIC

Comment 77: TUTRIC's Eligibility for a Separate Rate
Comment 78: TUTRIC's Sales to GPX Delivered to the Tanggu Warehouse
Comment 79: Sales and FOPs for Tubes and Flaps for TUTRIC
Comment 80: Treatment of Indirect Labor Hours for TUTRIC
Comment 81: Additional Calculation Errors With Respect to TUTRIC
Comment 82: The Adequacy of TUTRIC's Reported Material Consumption 
Standards, Variance Calculations and FOP Consumption Rate
[FR Doc. E8-16156 Filed 7-14-08; 8:45 am]
BILLING CODE 3510-DS-S