[Federal Register Volume 84, Number 32 (Friday, February 15, 2019)]
[Notices]
[Pages 4434-4436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02657]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-041]


Truck and Bus Tires From the People's Republic of China: Amended 
Final Determination and Countervailing Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: On November 1, 2018, the Court of International Trade (CIT) 
remanded the International Trade Commission's (ITC) negative injury 
determination on truck and bus tires from the People's Republic of 
China (China). On January 30, 2019, the ITC filed its remand 
determination, finding material injury to an industry in the United 
States by reason of imports of truck and bus tires from China. Based on 
affirmative final determinations by the Department of Commerce 
(Commerce) and the ITC, Commerce is issuing a countervailing duty order 
on truck and bus tires from the China. In addition, Commerce is 
amending its final determination to correct ministerial errors. 
Therefore, Commerce will direct U.S. Customs and Border Protection 
(CBP) to suspend liquidation and collect cash deposits on entries of 
truck and bus tires from China at the ad valorem rates listed below.

DATES: Applicable February 15, 2019.

FOR FURTHER INFORMATION CONTACT: Dana Mermelstein or Lana Nigro, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-1391 or (202) 482-1779, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 17, 2017, the ITC published its final determination that 
an industry in the United States was not materially injured or 
threatened with material injury by reason of imports of truck and bus 
tires from China.\1\ The United Steel, Paper and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial and Service Workers 
International Union, AFL-CIO, CLC (the petitioner) challenged the ITC's 
final negative determination, and on November 1, 2018, the CIT remanded 
the determination to the ITC for reconsideration.\2\ On January 30, 
2019, upon remand, the ITC found that a U.S. industry is materially 
injured within the meaning of section 705(b)(1)(A)(i) of the Act, by 
reason of subsidized imports of truck and bus tires from China.\3\ 
Further, the ITC determined that critical circumstances do not exist 
with respect to imports of truck and bus tires from China.
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    \1\ See Truck and Bus Tires from China, 82 FR 14232 (March 17, 
2017) (ITC Final Determination).
    \2\ See United Steel, Paper and Forestry, Rubber, Mfg., Energy, 
Allied Indus. and Serv. Workers Int'l Union v. United States, Slip 
Op. 18-151 (CIT November 1, 2018).
    \3\ See ITC Notification Letter to the Secretary of Commerce, 
referencing ITC Investigation Nos. 701-TA-556 and 731-TA-1311, dated 
February 8, 2019 (ITC Notification).
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    On February 8, 2019, pursuant to the U.S. Court of Appeals for the 
Federal Circuit's (CAFC) opinion in Diamond Sawblades Manufacturers 
Coalition v. United States, 626 F.3d 1374, 1381 (Fed. Cir. 2010), the 
ITC notified Commerce of its determination upon remand.\4\ In Diamond 
Sawblades, the CAFC clarified that the same procedures for issuance of 
an order and collection of cash deposits apply when a material injury 
determination is made upon remand, and that the ITC should provide 
notice to Commerce of its remand determination at the time that it is 
issued, notwithstanding the pendency of ongoing litigation.\5\ 
Moreover, the Court held that Commerce's duty to publish an order is 
triggered by the ITC's notification of its affirmative injury 
determination, rather than the date of the publication of the notice of 
such determination.\6\
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    \4\ Id.
    \5\ Diamond Sawblades, 626 F.3d at 1381-82.
    \6\ Id. at 1379, n.2.
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Scope of the Order

    The products covered by this order are truck and bus tires from 
China. For a complete description of the scope of this order, see the 
Appendix to this notice.

Amendment to the Final Determination

    On January 30, 2017, and February 1, 2017, Shanghai Huayi Group 
Corporation Limited (Double Coin) and Guizhou Tyre Co., Ltd. and 
Guizhou Tyre Import and Export Co., Ltd. (collectively GTC), 
respectively, timely alleged that the Final Determination \7\ contained 
certain ministerial errors and requested that Commerce correct such 
errors.
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    \7\ See Truck and Bus Tires from the People's Republic of China: 
Final Affirmative Countervailing Duty Determination, Final 
Affirmative Critical Circumstances Determination, in Part, 82 FR 
8606 (January 27, 2019) (Final Determination).
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    Commerce reviewed the record and on February 14, 2017, agreed that 
certain errors referenced in Double Coin's and GTC's allegations 
constitute ministerial errors within the meaning of section 705(e) of 
the Act and 19 CFR 351.224(f).\8\ Pursuant to 19 CFR 351.224(e), 
Commerce is amending the Final Determination to reflect the correction 
of the ministerial errors described in the Ministerial Error 
Memorandum.\9\ Based on our correction of the ministerial errors in 
Double

[[Page 4435]]

Coin's calculation, the subsidy rate for Double Coin decreased from 
38.61 ad valorem to 20.98 ad valorem.\10\ Based on our correction of 
the ministerial errors in GTC's calculation, the subsidy rate for GTC 
decreased from 65.46 ad valorem to 63.34 percent ad valorem.\11\ 
Because in the Final Determination, we based the ``all-others'' rate on 
Double Coin's and GTC's ad valorem subsidy rates, the corrections 
described above also required that we recalculate the ``all-others'' 
rate. This recalculation decreased the ``all-others'' rate determined 
in the Final Determination from 52.04 percent ad valorem to 42.16 
percent ad valorem.\12\
    \9\ This amended final determination recalculated the subsidy rates 
for certain LTAR programs that are used in the concurrent antidumping 
duty investigation for the calculation of domestic pass-through subsidy 
rate. These amended subsidy rates are as follows:
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    \8\ See Memorandum, ``Countervailing Duty Investigation of Truck 
and Bus Tires from the People's Republic of China: Allegations of 
Ministerial Errors,'' dated February 14, 2017 (Ministerial Error 
Memorandum).
    \10\ Id.
    \11\ Id.
    \12\ Id.

------------------------------------------------------------------------
    Inputs provided at LTAR        Double coin              GTC
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Carbon Black..................  Same as Final....  3.73%.
Nylon Cord....................  Same as Final....  4.05%.
Natural Rubber................  0.02%............  Same as Final.
Synthetic Rubber and Butadiene  2.35%............  6.49%.
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Countervailing Duty Order

    On February 8, 2019, in accordance with section 705(d) of the Act, 
the ITC notified Commerce of its remand determination in this 
investigation, in which it found that imports of truck and bus tires 
are materially injuring a U.S. industry.\13\ Therefore, in accordance 
with section 705(c)(2) of the Act, we are publishing this 
countervailing duty order.
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    \13\ See ITC Notification.
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will direct CBP 
to reinstitute the suspension of liquidation of subject merchandise 
from China, effective the date of publication of this countervailing 
duty order in the Federal Register, and to assess, upon further 
instruction by Commerce pursuant to section 706(a)(1) of the Act, 
countervailing duties for each entry of the subject merchandise in an 
amount based on the net countervailable subsidy rates for the subject 
merchandise. On or after the date of publication of this countervailing 
duty order in the Federal Register, we will instruct CBP to require, at 
the same time as importers would normally deposit estimated duties on 
this merchandise, cash deposits for each entry of subject merchandise 
equal to the rates noted below. These instructions suspending 
liquidation will remain in effect until further notice. The ``all-
others'' rate applies to all producers or exporters not specifically 
listed, as appropriate.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Guizhou Tyre Import and Export Co., Ltd; Guizhou Tyre              63.34
 Co., Ltd...............................................
Shanghai Huayi Group Corporation Limited; Double Coin              20.98
 Holdings Ltd.; Double Coin Group (Jiangsu) Tyre Co.,
 Ltd.; Double Coin Group (Chongqing) Tyre Co., Ltd.;
 Double Coin Group Shanghai Donghai Tyre Co. Ltd.;
 Double Coin Group (Xinjiang) Kunlun Tyre Co., Ltd......
All-Others..............................................           42.16
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Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to truck and bus tires from China pursuant to section 706(a) of the 
Act. Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastatsl.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: February 12, 2019.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The scope of the order covers truck and bus tires. Truck and bus 
tires are new pneumatic tires, of rubber, with a truck or bus size 
designation. Truck and bus tires covered by this investigation may 
be tube-type, tubeless, radial, or non-radial.
    Subject tires have, at the time of importation, the symbol 
``DOT'' on the sidewall, certifying that the tire conforms to 
applicable motor vehicle safety standards. Subject tires may also 
have one of the following suffixes in their tire size designation, 
which also appear on the sidewall of the tire:
    TR--Identifies tires for service on trucks or buses to 
differentiate them from similarly sized passenger car and light 
truck tires; and
    HC--Identifies a 17.5 inch rim diameter code for use on low 
platform trailers.
    All tires with a ``TR'' or ``HC'' suffix in their size 
designations are covered by this investigation regardless of their 
intended use.
    In addition, all tires that lack one of the above suffix 
markings are included in the scope, regardless of their intended 
use, as long as the tire is of a size that is among the numerical 
size designations listed in the ``Truck-Bus'' section of the Tire 
and Rim Association Year Book, as updated annually, unless the tire 
falls within one of the specific exclusions set out below.
    Truck and bus tires, whether or not mounted on wheels or rims, 
are included in the scope. However, if a subject tire is imported 
mounted on a wheel or rim, only the tire is covered by the scope. 
Subject merchandise includes truck and bus tires produced in the 
subject country whether mounted on wheels or rims in the subject 
country or in a third country. Truck and bus tires are covered 
whether or not they are accompanied by other parts, e.g., a wheel, 
rim, axle parts, bolts, nuts, etc. Truck and bus tires that enter 
attached to a vehicle are not covered by the scope.
    Specifically excluded from the scope of this investigation are 
the following types of tires: (1) Pneumatic tires, of rubber, that 
are not new, including recycled and retreaded tires; (2) non-
pneumatic tires, such as solid rubber tires; and (3) tires that 
exhibit each of the following physical characteristics: (a) The 
designation ``MH'' is molded into the tire's sidewall as part of the 
size designation; (b) the tire incorporates a warning, prominently

[[Page 4436]]

molded on the sidewall, that the tire is for ``Mobile Home Use 
Only;'' and (c) the tire is of bias construction as evidenced by the 
fact that the construction code included in the size designation 
molded into the tire's sidewall is not the letter ``R.''
    The subject merchandise is currently classifiable under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 
4011.20.1015 and 4011.20.5020. Tires meeting the scope description 
may also enter under the following HTSUS subheadings: 4011.69.0020, 
4011.69.0090, 4011.70.00, 4011.90.80, 4011.99.4520, 4011.99.4590, 
4011.99.8520, 4011.99.8590, 8708.70.4530, 8708.70.6030, 
8708.70.6060, and 8716.90.5059.\14\
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    \14\ On August 26, 2016, Commerce included HTSUS subheadings 
4011.69.0020, 4011.69.0090, and 8716.90.5059 to the case reference 
files, pursuant to requests by CBP and the petitioner. See 
Memorandum to the File entitled, ``Requests from Customs and Border 
Protection and the Petitioner to Update the ACE Case Reference 
File,'' dated August 26, 2016. On January 19, 2017, Commerce 
included HTSUS subheadings 4011.70.00 and 4011.90.80 to the case 
reference files, pursuant to requests by CBP. See Memorandum to the 
File entitled, ``Requests from Customs and Border Protection to 
Update the ACE Case Reference File,'' dated January 19, 2017.
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    While HTSUS subheadings are provided for convenience and for 
customs purposes, the written description of the subject merchandise 
is dispositive.

[FR Doc. 2019-02657 Filed 2-14-19; 8:45 am]
BILLING CODE 3510-DS-P