[Federal Register Volume 74, Number 216 (Tuesday, November 10, 2009)]
[Notices]
[Pages 57999-58001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27071]


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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: Initiation of Changed Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') has received 
information sufficient to warrant initiation of a changed circumstances 
review of the antidumping duty order on certain new pneumatic off-the-
road tires from the People's Republic of China (``PRC''). Specifically, 
based upon a request filed by Mai Shandong Radial Tyre Co., Ltd. (``Mai 
Shandong''), the Department is initiating a changed circumstances 
review to determine whether Mai Shandong is the successor-in-interest 
to Shandong Jinyu Tyre Co., Ltd. (``Shandong Jinyu''), a separate-rate 
respondent in the original investigation.

EFFECTIVE DATE: November 10, 2009.

FOR FURTHER INFORMATION CONTACT: Raquel Silva, AD/CVD Operations, 
Office 8, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, 
DC 20230; telephone: 202-482-6475.

SUPPLEMENTARY INFORMATION:

Background

    On September 4, 2008, the Department published in the Federal 
Register an antidumping duty order on certain new pneumatic off-the-
road tires from the PRC. See Certain New Pneumatic Off-the-Road Tires 
from the People's Republic of China: Notice of Amended Final 
Affirmative Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order, 73 FR 51624 (September 4, 2008). As part of 
that order, Shandong Jinyu received the separate-rate respondent 
amended rate of 12.91 percent. Id. at 51627. On September 14, 2009, Mai 
Shandong filed a submission requesting that the Department conduct a 
changed circumstances review of the antidumping duty order on certain 
new pneumatic off-the-road tires from the PRC to confirm that it is the 
successor-in-interest to Shandong Jinyu.\1\ In its

[[Page 58000]]

submission, Mai Shandong provided the Joint Venture Contract, Articles 
of Association and various other contracts relating to the transfer of 
assets from Shandong Jinyu to Mai Shandong. In addition, Mai Shandong 
provided narrative explanation and limited documentation relating to 
the management, production facilities and process, customer base, 
supplier relationships, distribution and marketing channels and product 
mix of both it and Shandong Jinyu. As part of its September 14, 2009 
submission, Mai Shandong requested that the Department conduct an 
expedited review.
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    \1\ See Letter from Mai Shandong to the Department regarding 
Certain New Pneumatic Off-The-Road Tires from the People's Republic 
of China, Request for Changed Circumstances Review (Case No. A-570-
912) (September 14, 2009).
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Scope of the Order

    The products covered by the order 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,\2\ combine 
harvesters,\3\ agricultural high clearance sprayers,\4\ industrial 
tractors,\5\ log-skidders,\6\ agricultural implements, highway-towed 
implements, agricultural logging, and agricultural, industrial, skid-
steers/mini-loaders;\7\ (2) construction vehicles and equipment, 
including earthmover articulated dump products, rigid frame haul 
trucks,\8\ front end loaders,\9\ dozers,\10\ lift trucks, straddle 
carriers,\11\ graders,\12\ mobile cranes,\13\ 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.\14\ 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 order range in size (rim diameter) generally but not exclusively 
from 8 inches to 54 inches. The tires may be either tube-type\15\ 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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    \2\ 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.
    \3\ Combine harvesters are used to harvest crops such as corn or 
wheat.
    \4\ Agricultural sprayers are used to irrigate agricultural 
fields
    \5\ 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.
    \6\ 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.
    \7\ 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.
    \8\ 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.
    \9\ 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.
    \10\ 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.
    \11\ 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.
    \12\ 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.
    \13\ i.e., ``on-site'' mobile cranes designed for off-highway 
use.
    \14\ 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.
    \15\ 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.

[[Page 58001]]

    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 1,500 pounds).

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(``Act''), the Department will conduct a changed circumstances review 
upon receipt of information concerning, or a request from, an 
interested party for a review of an antidumping duty order which shows 
changed circumstances sufficient to warrant a review of the order.
    In accordance with 19 CFR 351.216(d), the Department has determined 
that the information submitted by Mai Shandong constitutes sufficient 
evidence to conduct a changed circumstances review. In an antidumping 
duty changed circumstances review involving a successor-in-interest 
determination, the Department typically examines several factors 
including, but not limited to, changes in: (1) management; (2) 
production facilities; (3) supplier relationships; and (4) customer 
base. See, e.g., Certain Activated Carbon from the People's Republic of 
China: Notice of Initiation of Changed Circumstances Review, 74 FR 
19934 (April 30, 2009). While no single factor or combination of 
factors will necessarily be dispositive, the Department generally will 
consider the new company to be the successor to the predecessor if the 
resulting operations are essentially the same as those of the 
predecessor company. See, e.g., Notice of Initiation of Antidumping 
Duty Changed Circumstances Review: Certain Forged Stainless Steel 
Flanges from India, 71 FR 327 (January 4, 2006). Thus, if the record 
demonstrates that, with respect to the production and sale of the 
subject merchandise, the new company operates as the same business 
entity as the predecessor company, the Department may assign the new 
company the cash deposit rate of its predecessor. See, e.g., Fresh and 
Chilled Atlantic Salmon from Norway; Final Results of Changed 
Circumstances Antidumping Duty Administrative Review, 64 FR 9979, 9980 
(March 1, 1999).
    Based on the information provided in its submission, Mai Shandong 
has provided sufficient evidence to warrant a review to determine if it 
is the successor-in-interest to Shandong Jinyu. Therefore, pursuant to 
section 751(b)(1) of the Act and 19 CFR 351.216(d), we are initiating a 
changed circumstances review. Although Mai Shandong submitted 
documentation related to the transfer of assets from Shandong Jinyu to 
it and some limited information and documentation regarding the four 
factors that the Department considers in its successor-in-interest 
analysis, it did not provide complete supporting documentation or 
conclusive evidence for the four elements listed above. Accordingly, 
the Department has determined that it would be inappropriate to 
expedite this action by combining the preliminary results of review 
with this notice of initiation.  See 19 CFR 351.221(c)(3)(ii). Thus, 
the Department is not issuing the preliminary results of its 
antidumping duty changed circumstances review at this time. See, e.g., 
Notice of Initiation of Antidumping Duty Changed Circumstances Review: 
Certain Pasta From Turkey, 74 FR 681 (January 7, 2009).
    The Department will issue questionnaires requesting additional 
information for the review and will publish in the Federal Register a 
notice of the preliminary results of the antidumping duty changed 
circumstances review, in accordance with 19 CFR 351.221(b)(2) and (4), 
and 19 CFR 351.221(c)(3)(i). That notice will set forth the factual and 
legal conclusions upon which our preliminary results are based and a 
description of any action proposed. Pursuant to 19 CFR 
351.221(b)(4)(ii), interested parties will have an opportunity to 
comment on the preliminary results of review. In accordance with 19 CFR 
351.216(e), the Department will issue the final results of its 
antidumping duty changed circumstances review not later than 270 days 
after the date on which the review is initiated.
    This notice is published in accordance with sections 751(b)(1) and 
777(i) of the Act and 19 CFR 351.216.

    Dated: November 2, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. E9-27071 Filed 11-9-09; 8:45 am]
BILLING CODE 3510-DS-S