[Federal Register Volume 85, Number 19 (Wednesday, January 29, 2020)]
[Notices]
[Pages 5193-5196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01560]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-016, C-570-017]


Notice of Initiation and Preliminary Results of Changed 
Circumstances Reviews: Certain Passenger Vehicle and Light Truck Tires 
From the People's Republic of China

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

SUMMARY: In response to a request for changed circumstances reviews 
(CCRs), the Department of Commerce (Commerce) is initiating CCRs of the 
antidumping duty (AD) and countervailing duty (CVD) orders on certain 
passenger vehicle and light truck tires (passenger tires) from the 
People's Republic of China (China). We have preliminarily determined 
that: Sailun Group Co., Ltd. (Sailun Group) is the successor-in-
interest to Sailun Jinyu Group Co., Ltd. (Sailun Jinyu); Sailun 
(Dongying) Tire Co., Ltd. (Sailun Dongying) is the successor-in-
interest to Shandong Jinyu Industrial Co., Ltd. (Shandong Jinyu); and 
Sailun Group (Hong Kong) Co., Ltd. (Sailun HK) is the successor-in-
interest to Sailun Jinyu Group (Hong Kong) Co., Ltd. (Sailun Jinyu HK). 
As a result, these entities should be accorded the same treatment 
previously accorded to this company group. Interested parties are 
invited to comment on these preliminary results.

DATES: Applicable January 29, 2020.

FOR FURTHER INFORMATION CONTACT: Toni Page at (202) 482-1398 (AD) or 
Andrew Huston at (202) 482-4261 (CVD), Office VII, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On August 10, 2015, Commerce published in the Federal Register the 
AD and CVD Orders on passenger tires from China.\1\ During the AD 
investigation of this proceeding, Commerce selected Sailun Jinyu as a 
mandatory respondent and found that Sailun Jinyu, Shandong Jinyu, 
Sailun Jinyu HK, as well as several other companies were part of the 
Sailun Jinyu Group and treated them as a single entity for purposes of 
calculating the AD margin.\2\ In the companion CVD case, the Sailun 
Group has never been selected as a mandatory respondent in any of the 
proceedings and has received the all-others CVD subsidy rate in the 
investigation and subsequent administrative reviews.\3\
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    \1\ See Certain Passenger Vehicle and Light Truck Tires from the 
People's Republic of China: Amended Final Affirmative Antidumping 
Duty Determination and Antidumping Duty Order; and Amended Final 
Affirmative Countervailing Duty Determination and Countervailing 
Duty Order, 80 FR 47902 (August 10, 2015) (Orders).
    \2\ See Sailun Jinyu's Letter, ``Sailun Request for a Changed 
Circumstances Review in Certain Passenger Vehicle and Light Truck 
Tires from the People's Republic of China, Case No. A-570-016,'' 
dated October 25, 2019 (AD CCR Request).
    \3\ See Sailun Jinyu's Letter, ``Sailun Request for a Changed 
Circumstances Review in Certain Passenger Vehicle and Light Truck 
Tires from the People's Republic of China, Case No. C-570-017,'' 
dated October 25, 2019 (CVD CCR Request).
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    On October 25, 2019, Sailun Jinyu requested that Commerce conduct 
expedited CCRs of the Orders to determine that Sailun Group is the 
successor-in-interest to Sailun Jinyu, Sailun Dongying is the 
successor-in-interest to Shandong Jinyu, and Sailun HK is the 
successor-in-interest to Sailun Jinyu HK.\4\ Commerce continued to 
treat the Sailun Jinyu Group as a single entity through subsequent AD 
administrative reviews.\5\ In its requests, Sailun Jinyu addressed the 
factors Commerce analyzes with respect to successor-in-interest 
determinations in the AD and CVD context, and provided documentation in 
support.\6\ Commerce received no comments from interested parties on 
Sailun Jinyu's CCR requests. On December 6, 2019, Commerce extended the 
deadline to determine whether to initiate the CCR by 45 days, until 
January 23, 2020 \7\ in accordance with 19 CFR 351.302(b). On December 
10, 2019, Commerce requested additional information from Sailun

[[Page 5194]]

Jinyu,\8\ and Sailun Jinyu responded to this request on December 20, 
2019.\9\
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    \4\ See AD CCR Request; and CVD CCR Request.
    \5\ See AD CCR Request at 5.
    \6\ See AD CCR Request; and CVD CCR Request.
    \7\ See Memorandum, ``Initiation of Changed Circumstances 
Reviews: Certain Passenger Vehicle and Light Truck Tires from the 
People's Republic of China,'' dated December 6, 2019.
    \8\ See Commerce's Letter, ``Certain Passenger Vehicle and Light 
Truck Tires from the People's Republic of China Changed 
Circumstances Review Request Questionnaire,'' dated December 10, 
2019.
    \9\ See Sailun Jinyu's Letter, ``Sailun Questionnaire Response 
in the CVD Changed Circumstances Review of Certain Passenger Vehicle 
and Light Truck Tires from the People's Republic of China, Case No. 
C-570-017,'' dated December 20, 2019 (Sailun Jinyu CCR Response).
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Scope of the Orders

    The scope of these orders is passenger vehicle and light truck 
tires. Passenger vehicle and light truck tires are new pneumatic tires, 
of rubber, with a passenger vehicle or light truck size designation. 
Tires covered by this order may be tube-type, tubeless, radial, or non-
radial, and they may be intended for sale to original equipment 
manufacturers or the replacement market.
    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 the following 
prefixes or suffix in their tire size designation, which also appears 
on the sidewall of the tire:

Prefix designations:
    P-Identifies a tire intended primarily for service on passenger 
cars
    LT-Identifies a tire intended primarily for service on light trucks
Suffix letter designations:
    LT-Identifies light truck tires for service on trucks, buses, 
trailers, and multipurpose passenger vehicles used in nominal highway 
service.

    All tires with a ``P'' or ``LT'' prefix, and all tires with an 
``LT'' suffix in their sidewall markings are covered by this 
investigation regardless of their intended use. In addition, all tires 
that lack a ``P'' or ``LT'' prefix or suffix in their sidewall 
markings, as well as all tires that include any other prefix or suffix 
in their sidewall 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 passenger car section or 
light truck 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.
    Passenger vehicle and light truck tires, whether or not attached to 
wheels or rims, are included in the scope. However, if a subject tire 
is imported attached to a wheel or rim, only the tire is covered by the 
scope.
    Specifically excluded from the scope are the following types of 
tires:
    (1) Racing car tires; such tires do not bear the symbol ``DOT'' on 
the sidewall and may be marked with ``ZR'' in size designation;
    (2) new pneumatic tires, of rubber, of a size that is not listed in 
the passenger car section or light truck section of the Tire and Rim 
Association Year Book;
    (3) pneumatic tires, of rubber, that are not new, including 
recycled and retreaded tires;
    (4) non-pneumatic tires, such as solid rubber tires;
    (5) tires designed and marketed exclusively as temporary use spare 
tires for passenger vehicles which, in addition, exhibit each of the 
following physical characteristics:
    (a) The size designation and load index combination molded on the 
tire's sidewall are listed in Table PCT-1B (``T'' Type Spare Tires for 
Temporary Use on Passenger Vehicles) of the Tire and Rim Association 
Year Book,
    (b) the designation ``T'' is molded into the tire's sidewall as 
part of the size designation, and,
    (c) the tire's speed rating is molded on the sidewall, indicating 
the rated speed in MPH or a letter rating as listed by Tire and Rim 
Association Year Book, and the rated speed is 81 MPH or a ``M'' rating;
    (6) tires designed and marketed exclusively for specialty tire (ST) 
use which, in addition, exhibit each of the following conditions:
    (a) The size designation molded on the tire's sidewall is listed in 
the ST sections of the Tire and Rim Association Year Book,
    (b) the designation ``ST'' is molded into the tire's sidewall as 
part of the size designation,
    (c) the tire incorporates a warning, prominently molded on the 
sidewall, that the tire is ``For Trailer Service Only'' or ``For 
Trailer Use Only'',
    (d) the load index molded on the tire's sidewall meets or exceeds 
those load indexes listed in the Tire and Rim Association Year Book for 
the relevant ST tire size, and
    (e) either
    (i) the tire's speed rating is molded on the sidewall, indicating 
the rated speed in MPH or a letter rating as listed by Tire and Rim 
Association Year Book, and the rated speed does not exceed 81 MPH or an 
``M'' rating; or
    (ii) the tire's speed rating molded on the sidewall is 87 MPH or an 
``N'' rating, and in either case the tire's maximum pressure and 
maximum load limit are molded on the sidewall and either
    (1) both exceed the maximum pressure and maximum load limit for any 
tire of the same size designation in either the passenger car or light 
truck section of the Tire and Rim Association Year Book; or
    (2) if the maximum cold inflation pressure molded on the tire is 
less than any cold inflation pressure listed for that size designation 
in either the passenger car or light truck section of the Tire and Rim 
Association Year Book, the maximum load limit molded on the tire is 
higher than the maximum load limit listed at that cold inflation 
pressure for that size designation in either the passenger car or light 
truck section of the Tire and Rim Association Year Book;
    (7) tires designed and marketed exclusively for off-road use and 
which, in addition, exhibit each of the following physical 
characteristics:
    (a) The size designation and load index combination molded on the 
tire's sidewall are listed in the off-the-road, agricultural, 
industrial or ATV section of the Tire and Rim Association Year Book,
    (b) in addition to any size designation markings, the tire 
incorporates a warning, prominently molded on the sidewall, that the 
tire is ``Not For Highway Service'' or ``Not for Highway Use'',
    (c) the tire's speed rating is molded on the sidewall, indicating 
the rated speed in MPH or a letter rating as listed by the Tire and Rim 
Association Year Book, and the rated speed does not exceed 55 MPH or a 
``G'' rating, and
    (d) the tire features a recognizable off-road tread design.
    The products covered by this order are currently classified under 
the following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 
4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 
4011.10.50.00, 4011.20.10.05, and 4011.20.50.10. Tires meeting the 
scope description may also enter under the following HTSUS subheadings: 
4011.99.45.10, 4011.99.45.50, 4011.99.85.10, 4011.99.85.50, 
8708.70.45.45, 8708.70.45.60, 8708.70.60.30, 8708.70.60.45, and 
8708.70.60.60. While HTSUS subheadings are provided for convenience and 
for customs purposes, the written description of the subject 
merchandise is dispositive.

Initiation of Changed Circumstances Reviews

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.216, Commerce will conduct a CCR upon a 
request from an interested party for a review of an AD or CVD order 
which shows changed

[[Page 5195]]

circumstances sufficient to warrant a review of the orders. The 
information submitted by Sailun Jinyu supporting its claim that Sailun 
Group is the successor-in-interest to Sailun Jinyu, Sailun Dongying is 
the successor-in-interest to Shandong Jinyu, and Sailun HK is the 
successor-in-interest to Sailun Jinyu HK demonstrates both good cause 
and changed circumstances sufficient to initiate these reviews.\10\
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    \10\ See 19 CFR 351.216.
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    Sailun Jinyu argues that Commerce's practice is to grant expedited 
successor-in-interest status to new companies when the evidence 
confirms that the company has merely changed its name.\11\ Sailun Jinyu 
notes that in the Aspirin from China CCR, Commerce stated that the 
company under review demonstrated sufficient good cause in accordance 
with 19 CFR 351.216(c) because the company had only undergone a change 
in name.\12\ The information submitted by Sailun Jinyu demonstrates 
that its and its entities' requests are based solely on changes to 
their respective company names. Specifically, Sailun Jinyu provided a 
company announcement explaining how it and its affiliates changed their 
company names as part of a re-branding strategy.\13\
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    \11\ See AD CCR Request at 3; and CVD CCR Request at 3 (citing 
Bulk Aspirin from the People's Republic of China; Initiation of 
Changed Circumstances Antidumping Duty Administrative Review, 67 FR 
39344 (June 7, 2002) (Aspirin from China CCR).
    \12\ See AD CCR Request at 3; and CVD CCR Request at 3.
    \13\ See AD CCR Request at 6 and Exhibit 2; see also CVD CCR 
Request at 5 and Exhibit 1.
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    Therefore, in accordance with the above-referenced regulation, 
Commerce is initiating CCRs to determine whether Sailun Group is the 
successor-in-interest to Sailun Jinyu, Sailun Dongying is the 
successor-in-interest to Shandong Jinyu, and Sailun HK is the 
successor-in-interest to Sailun Jinyu HK.

Preliminary Results

    When it concludes that expedited action is warranted, Commerce may 
publish the notice of initiation and preliminary results of a CCR 
concurrently.\14\ Commerce has combined the notice of initiation and 
preliminary results in successor-in-interest CCRs when sufficient 
documentation has been provided supporting the request to make a 
preliminary determination.\15\ In this instance, because we have on the 
record information to support the request for AD and CVD preliminary 
determinations, we find that expedited action is warranted, and we are 
combining the notice of initiation and the notice of preliminary 
results, in accordance with 19 CFR 351.221(c)(3)(ii).
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    \14\ See 19 CFR 351.221(c)(3)(ii).
    \15\ See, e.g., Multilayered Wood Flooring from the People's 
Republic of China: Initiation and Preliminary Results of Antidumping 
and Countervailing Duty Changed Circumstances Reviews, 82 FR 9561 
(February 7, 2017), unchanged in Multilayered Wood Flooring from the 
People's Republic of China: Final Results of Changed Circumstances 
Reviews, 82 FR 14691 (March 22, 2017) (Wood Flooring from China 2017 
CCR).
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AD Methodology

    In a CCR, Commerce generally considers a company to be the 
successor to another company for AD cash deposit purposes if the 
operations of the successor are not materially dissimilar from those of 
its predecessor.\16\ In making an AD CCR determination, Commerce 
examines a number of factors including, but not limited to, changes in: 
(1) Management; (2) production; (3) suppliers; and (4) customer 
base.\17\ While none of these factors is dispositive, Commerce will 
generally consider one company to be the successor to another if its 
resulting operation is essentially the same as that of its 
predecessor.\18\ Thus, if the evidence demonstrates that, with respect 
to the production and sale of the subject merchandise, the new company 
operates as the same business entity as the prior company, Commerce 
will assign the new company the cash deposit rate of its 
predecessor.\19\ In its CCR submission, Sailun Jinyu provided evidence 
demonstrating that the successor companies' operations are not 
materially dissimilar from those of the predecessors. Specifically, all 
three of the new Sailun Group entities will be managed and operated by 
the same management teams as those of their predecessors.\20\ Further, 
there is no change in the Sailun Jinyu Group's production facilities as 
a result the name changes.\21\ Finally, there have been no significant 
changes to the companies' suppliers or customer base.\22\ Based on the 
foregoing, we preliminarily determine that Sailun Group is the 
successor-in-interest to Sailun Jinyu, Sailun Dongying is the 
successor-in-interest to Shandong Jinyu, and Sailun HK is the 
successor-in-interest to Sailun Jinyu HK. As such, these entities are 
entitled to the Sailun Jinyu Group's AD cash deposit rate with respect 
to entries of subject merchandise.
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    \16\ Id.
    \17\ See Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review: Multilayered Wood Flooring from the 
People's Republic of China, 79 FR 48117, 48118 (August 15, 2014), 
unchanged in Multilayered Wood Flooring from the People's Republic 
of China: Final Results of Changed Circumstances Review, 79 FR 58740 
(September 30, 2014).
    \18\ Id.
    \19\ See, e.g., Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review: Crystalline Silicon 
Photovoltaic Cells, Whether or Not Assembled Into Modules, from the 
People's Republic of China, 81 FR 76561 (November 3, 2016), 
unchanged in Crystalline Silicon Photovoltaic Cells, Whether or Not 
Assembled Into Modules, from the People's Republic of China: Final 
Results of Changed Circumstances Review, 81 FR 91909 (December 19, 
2016).
    \20\ See AD CCR Request at 9, 10, 12 and Exhibits 3c, 4c, and 
5b.
    \21\ Id. at 9 and Exhibits 3d and 4d.
    \22\ Id. at 10 and Exhibits 3e, 3f, 4e, 4f, 5c, and 5d.
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CVD Methodology

    As a general rule, in a CVD CCR, Commerce will make an affirmative 
CVD successorship finding (i.e., that the respondent company is the 
same subsidized entity for CVD cash deposit purposes as the predecessor 
company) where there is no evidence of significant changes in the 
respondent's: (1) Operations; (2) ownership; and (3) corporate and 
legal structure during the relevant period (i.e., the ``look-back 
window'') that could have affected the nature and extent of the 
respondent's subsidy levels.\23\ Where Commerce makes an affirmative 
CVD successorship finding, the successor's merchandise will be entitled 
to enter under the predecessor's cash deposit rate.\24\ Here, we find 
no evidence of significant changes between Sailun Jinyu, Shandong 
Jinyu, and Sailun Jinyu HK, and the successor in interest companies, 
respectively, Sailun Group, Sailun Dongying and Sailun HK's operations, 
ownership, or their corporate or legal structure that could have had an 
impact on Sailun Group, Sailun Dongying, and Sailun HK's subsidy 
levels.\25\ Specifically, all record information with respect to Sailun 
Group, Sailun Dongying, and Sailun HK's trading operations,\26\ 
shareholders, and corporate and legal structures \27\ demonstrates that 
these companies are the same subsidized entities as their

[[Page 5196]]

predecessors.\28\ Accordingly, we preliminarily determine that Sailun 
Group, Sailun Dongying, and Sailun HK are the successors-in-interest to 
Sailun Jinyu, Shandong Jinyu, and Sailun Jinyu HK, respectively, and, 
as such, that it they are entitled to Sailun Jinyu, Shandong Jinyu, and 
Sailun Jinyu HK's CVD cash deposit rate with respect to entries of 
subject merchandise.
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    \23\ See Certain Pasta from Turkey: Preliminary Results of 
Countervailing Duty Changed Circumstances Review, 74 FR 47225 
(September 15, 2009). Here, the relevant period, or ``look-back 
window,'' is December 31, 2018 (end of the period of review 
associated with the most recent opportunity to request an 
administrative review) through October 25, 2019 (date of the CVD CCR 
request).
    \24\ See Wood Flooring from China 2017 CCR.
    \25\ See CVD CCR Request; and Sailun Jinyu CCR Response.
    \26\ See CVD CCR Request at Exhibits 2e, 2f, 3e, 3f, 4c and 4d; 
and Sailun Jinyu CCR Response at 3.
    \27\ See CVD CCR Request at Exhibits 2a, 2b, 2c, 2d, 3a, 3b, 3c, 
4a, 4b and 4c; and Sailun Jinyu CCR Response at 4.
    \28\ See CVD CCR Request at Exhibit 1.
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    Should our final results remain the same as these preliminary 
results, we will instruct U.S. Customs and Border Protection to assign 
entries of subject merchandise exported by Sailun Group, Sailun 
Dongying, and Sailun HK the AD and CVD cash deposit rates applicable to 
Sailun Jinyu, Shandong Jinyu, and Sailun Jinyu HK, effective the date 
of publication of the final results.

Public Comment

    Any interested party may request a hearing within 14 days of 
publication of this notice, in accordance with 19 CFR 351.310(c). 
Interested parties may submit case briefs and/or written comments no 
later than 14 days after the date of publication of this notice.\29\ 
Rebuttal briefs and rebuttals to written comments, which must be 
limited to issues raised in such briefs or comments, may be filed not 
later than 7 days after the case briefs.\30\ Any hearing, if requested, 
will normally be held two days after rebuttal briefs/comments are due, 
in accordance with 19 CFR 351.310(d)(1). Parties who submit case briefs 
or rebuttal briefs in these CCRs are requested to submit with each 
argument (1) a statement of the issue, and (2) a brief summary of the 
argument with an electronic version included. Consistent with 19 CFR 
351.216(e), we will issue the final results of these CCRs no later than 
270 days after the date on which these reviews were initiated or within 
45 days of publication of these preliminary results if all parties 
agree to our preliminary findings.
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    \29\ Commerce is exercising its discretion under 19 CFR 
351.309(c)(1)(ii) to alter the time limit for the filing of case 
briefs.
    \30\ Commerce is exercising its discretion under 19 CFR 
351.309(d)(1) to alter the time limit for the filing of rebuttal 
briefs.
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Notification to Interested Parties

    We are issuing and publishing this initiation and preliminary 
results notice in accordance with sections 751(b)(1) and 777(i)(1) of 
the Act, and 19 CFR 351.216 and 351.221(c)(3).

    Dated: January 22, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2020-01560 Filed 1-28-20; 8:45 am]
BILLING CODE 3510-DS-P