[Federal Register Volume 84, Number 80 (Thursday, April 25, 2019)]
[Notices]
[Pages 17382-17384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08347]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-017]
Countervailing Duty Order on Certain Passenger Vehicle and Light
Truck Tires From the People's Republic of China: Final Results of
Countervailing Duty Administrative Review; 2016
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers/exporters of
passenger vehicle and light truck tires from the People's Republic of
China (China) during the period of review (POR) January 1, 2016,
through December 31, 2016.
DATES: Applicable April 25, 2019.
FOR FURTHER INFORMATION CONTACT: Andrew Huston, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone (202) 482-4261.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary Results of this administrative
review in the Federal Register on September 10, 2018.\1\ We invited
interested parties to comment on the Preliminary Results. On October
31, 2018, we received case briefs from the following interested
parties: Cooper (Kunshan) Tire Co., Ltd. (Cooper); Qingdao Sentury Tire
Co. Ltd. (Sentury); and the Government of China (GOC). No party
submitted rebuttal
[[Page 17383]]
briefs. On December 17, 2018, Commerce extended the period for issuing
the final results of this review until February 7, 2019. Commerce
exercised its discretion to toll all deadlines affected by the partial
federal government closure from December 22, 2018, through the
resumption of operations on January 29, 2019.\2\ This extended the
deadline for the final results to March 19, 2019. On March 13, 2019,
Commerce extended the period for issuing the final results an
additional 30 days. The revised deadline for the final results is now
April 18, 2019.
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\1\ See Certain Passenger Vehicle and Light Truck Tires from the
People's Republic of China: Preliminary Results of Countervailing
Duty Administrative Review and Rescission, in Part; 2016, 83 FR
45611 (September 10, 2018) (Preliminary Results).
\2\ See Memorandum to the Record from Gary Taverman, Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance, ``Deadlines
Affected by the Partial Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
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Scope of the Order
The products covered by the order are certain passenger vehicle and
light truck tires from the China. A full description of the scope of
the order is contained in the Issues and Decision Memorandum.\3\
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\3\ See ``Decision Memorandum for the Final Results of the
Administrative Review of the Countervailing Duty Order on Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China; 2016,'' dated concurrently with this notice (Issues and
Decision Memorandum) and hereby adopted by this notice.
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Analysis of Comments Received
All issues raised in interested parties' briefs are addressed in
the Issues and Decision Memorandum accompanying this notice. A list of
the issues raised by interested parties and to which we responded in
the Issues and Decision Memorandum is provided in Appendix I to this
notice. The Issues and Decision Memorandum is a public document and is
on file electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at https://access.trade.gov and
in the Central Records Unit, Room B8024 of the main Department of
Commerce building. In addition, a complete version of the Issues and
Decision Memorandum can be access directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Issues and Decision Memorandum are identical in content.
Changes Since the Preliminary Results
Based on case briefs, and all supporting documentation, we made
certain changes from the Preliminary Results. Commerce has adjusted the
synthetic rubber and butadiene benchmarks for Cooper, adjusted the
ocean freight rates used to construct the benchmark for carbon black
and nylon cord for Cooper, and corrected various ministerial errors for
both respondents. These changes are explained in the Issues and
Decision Memorandum.
Methodology
Commerce conducted this review in accordance with section
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each
of the subsidy programs found to be countervailable, we find that there
is a subsidy, i.e., a financial contribution from a government or
public entity that gives rise to a benefit to the recipient, and that
the subsidy is specific.\4\ For a full description of the methodology
underlying all of Commerce's conclusions, including any determination
that relied upon the use of adverse facts available pursuant to
sections 776(a) and (b) of the Act, see the Issues and Decision
Memorandum.
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\4\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Final Results of Administrative Review
In accordance with 19 CFR 351.221(b)(5), we calculated a
countervailable subsidy rate for the mandatory respondents, Cooper and
Sentury. For the non-selected companies subject to this review,\5\ we
followed Commerce's practice, which is to base the subsidy rates on an
average of the subsidy rates calculated for those companies selected
for individual review, excluding de minimis rates or rates based
entirely on adverse facts available.\6\ In this case, for the non-
selected companies, we have calculated a rate by weight-averaging the
calculated subsidy rates of Cooper and Sentury using their publicly-
ranged sales data for exports of subject merchandise to the United
States during the POR. We find the countervailable subsidy rates for
the producers/exporters under review to be as follows:
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\5\ See Appendix II.
\6\ See, e.g., Certain Pasta from Italy: Preliminary Results of
the 13th (2008) Countervailing Duty Administrative Review, 75 FR
18806, 18811 (April 13, 2010), unchanged in Certain Pasta from
Italy: Final Results of the 13th (2008) Countervailing Duty
Administrative Review, 75 FR 37386 (June 29, 2010).
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Subsidy
Company rate (%)
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Cooper (Kunshan) Tire Co., Ltd. (Cooper)...................... 16.37
Qingdao Sentury Tire Co. Ltd. (Sentury)....................... 15.75
Non-Selected Companies Under Review........................... 16.17
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Disclosure
We will disclose to the parties in this proceeding the calculations
performed for these final results within five days of the date of
publication of this notice in the Federal Register.\7\
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\7\ See 19 CFR 351.224(b).
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Assessment Rates
Consistent with 19 CFR 351.212(b)(2), we intend to issue assessment
instructions to U.S. Customs and Border Protection (CBP) 15 days after
the date of publication of these final results of review, to liquidate
shipments of subject merchandise entered, or withdrawn from warehouse,
for consumption, on or after January 1, 2016, through December 31,
2016, at the ad valorem rates listed above.
Cash Deposit Instructions
In accordance with section 751(a)(1) of the Act, we intend to
instruct CBP to collect cash deposits of estimated countervailing
duties in the amounts shown for each of the respective companies listed
above. These cash deposit requirements, when imposed, shall remain in
effect until further notice.
Administrative Protective Order
This notice also serves as a reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the return or destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a sanctionable
violation.
Notification to Interested Parties
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: April 18, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
[[Page 17384]]
III. List of Comments from Interested Parties
IV. Scope of the Order
V. Changes Since the Preliminary Results
VI. Non-Selected Companies Under Review
VII. Subsidies Valuation Information
1. Allocation Period
2. Attribution of Subsidies
3. Denominators
4. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Programs Determined to be Countervailable
X. Programs Determined Not To Be Used or Not to Confer Measurable
Benefits During the POR
XI. Analysis of Comments
Comment 1: Sentury's Loan Calculation
Comment 2: Sentury's Export Credit Seller's Program
Comment 3: Sentury's VAT and Import Duty Exemption
Comment 4: Alleged Errors in Sentury's Electricity Calculation
Comment 5: Loan Calculation Handling Fees
Comment 6: 2015 and 2016 U.S. Dollar Benchmark
Comment 7: AFA Rate Assigned to Cooper for Export Buyer's Credit
Program
Comment 8: Ocean Freight Benchmark Applied to Cooper
Comment 9: Cooper's Benefit for Electricity at LTAR
Comment 10: Benefit to Cooper Under the Special Fund for Energy
Saving Technology Reform Program
Comment 11: Alleged Errors in Grant Calculations
Comment 12: Grade Specific Benchmarks for Cooper's Purchases of
Synthetic Rubber and Butadiene
Comment 13: Alleged Errors in Cooper's Government Policy Lending
Calculation
Comment 14: Ocean Freight and Import Duties Added to Tier 1 or
Tier 2 Benchmarks
Comment 15: Export Buyer's Credit
Comment 16: Whether the Export Buyer's Credit Program Should be
Considered an Export Subsidy
Comment 17: Other Subsidies
Comment 18: Appendix II
XII. Recommendation
Appendix--Non-Selected Companies Under Review
Appendix II
Non-Selected Companies Under Review
1. Best Industries Ltd.
2. BC Tyre Group Limited
3. Crown International Corporation
4. Dongying Zhongyi Rubber Co., Ltd.
5. Hankook Tire China Co., Ltd.
6. Hong Kong Tiancheng Investment & Trading Co., Limited
7. Hongtyre Group Co.
8. Jiangsu Hankook Tire Co., Ltd.
9. Jiangsu Sanhe Aluminum
10. Kenda Rubber (China) Co., Ltd.
11. Koryo International Industrial Limited
12. Mayrun Tyre (Hong Kong) Limited
13. Qingdao Jinhaoyang International Co., Ltd.
14. Qingdao Nama Industrial Co., Ltd.
15. Qingdao Odyking Tyre Co., Ltd.
16. Roadclaw Tyre (Hong Kong) Limited
17. Shandong Anchi Tyres Co., Ltd.
18. Shandong Haohua Tire Co., Ltd.
19. Shandong Haolong Rubber Co., Ltd.
20. Shandong Hengyu Science & Technology Co., Ltd.
21. Shandong Linglong Tyre Co., Ltd.
22. Shandong Longyue Rubber Co., Ltd.
23. Shandong New Continent Tire Co., Ltd.
24. Shandong Province Sanli Tire
25. Shandong Province Sanli Tire Manufactured Co., Ltd.
26. Shandong Shuangwang Rubber Co., Ltd.
27. Shandong Wanda Boto Tyre Co., Ltd.
28. Shandong Yongsheng Rubber Group Co., Ltd.
29. Shouguang Firemax Tyre Co., Ltd.
30. The Yokohama Rubber Company, Ltd.
31. Tyrechamp Group Co., Limited
32. Winrun Tyre Co., Ltd.
33. Zhaoqing Junhong Co., Ltd.
[FR Doc. 2019-08347 Filed 4-24-19; 8:45 am]
BILLING CODE 3510-DS-P