[Federal Register Volume 86, Number 101 (Thursday, May 27, 2021)]
[Notices]
[Pages 28563-28566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11263]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-869]


Passenger Vehicle and Light Truck Tires From Taiwan: Final 
Affirmative Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of passenger vehicle and light truck tires (passenger tires) from 
Taiwan are being, or are likely to be, sold in the United States at 
less than fair value (LTFV). The period of investigation (POI) April 1, 
2019, through March 31, 2020.

DATES: Applicable May 27, 2021.

FOR FURTHER INFORMATION CONTACT: Lauren Caserta or Chien-Min Yang, 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) 482-4737 or (202) 
482-5484, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 6, 2021, Commerce published in the Federal Register its 
preliminary affirmative determination in the LTFV investigation of 
passenger tires from Taiwan, in which we also postponed the final 
determination until May 21, 2021.\1\ We invited interested parties to 
comment on the Preliminary Determination. A summary of the events that 
occurred since Commerce published the Preliminary Determination, may be 
found in the Issues and Decision Memorandum.\2\
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    \1\ See Passenger Vehicle and Light Truck Tires from Taiwan: 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value, Postponement of Final Determination, and Extension of 
Provisional Measures, 86 FR 508 (January 6, 2021) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Passenger Vehicle and Light Truck Tires from 
Taiwan,'' dated concurrently with, and herby adopted by, this notice 
(Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are passenger tires from 
Taiwan. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    During the course of this investigation, Commerce received scope 
comments from interested parties. Commerce issued a Preliminary Scope 
Decision Memorandum to address these comments.\3\ We received comments 
from interested parties on the Preliminary Scope Decision Memorandum, 
which we addressed in the Final Scope Decision Memorandum.\4\ With the 
exception of one revision to correct a typographical error, Commerce is 
not modifying the scope language as it appeared in the correction to 
the Preliminary Determination.\5\ See Appendix I for the final scope of 
the investigation.
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    \3\ See Memorandum, ``Passenger Vehicle and Light Truck Tires 
from the Republic of Korea, Taiwan, Thailand, and the Socialist 
Republic of Vietnam: Preliminary Scope Comments Decision 
Memorandum.'' dated December 29, 2020 (Preliminary Scope Decision 
Memorandum).
    \4\ See Memorandum, ``Passenger Vehicle and Light Truck Tires 
from the Republic of Korea, Taiwan, Thailand, and the Socialist 
Republic of Vietnam: Scope Comments Final Decision Memorandum.'' 
dated concurrently with this notice (Final Scope Decision 
Memorandum).
    \5\ See Passenger Vehicle and Light Truck Tires from the 
Republic of Korea, Taiwan, Thailand, and the Socialist Republic of 
Vietnam: Notice of Correction to Preliminary Determinations in Less-
Than-Fair-Value Investigations, 86 FR 7252 (January 27, 2021).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of the issues addressed in the Issues 
and Decision Memorandum is attached to this notice at Appendix II. 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. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\6\
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    \6\ See Commerce's Letters, ``In Lieu of Verification 
Questionnaire for Cheng Shin Rubber Ind. Co. Ltd. in the Antidumping 
Duty Investigation of Passenger Vehicle and Light Truck Tires from 
Taiwan,'' dated February 25, 2021; and ``In Lieu of Verification 
Questionnaire for Nankang Rubber Tire Corp., Ltd. in the Antidumping 
Duty Investigation of Passenger Vehicle and Light Truck Tires from 
Taiwan,'' dated February 24, 2021.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings 
related to our request for information in lieu of verification, we made 
changes to the margin calculations for both Cheng Shin Rubber Ind. Co., 
Ltd.'s (Cheng Shin) and Nankang Rubber Tire Corp. Ltd. (Nankang). For a 
discussion of

[[Page 28564]]

these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act. Pursuant to section 735(c)(5)(B) of the Act, if the estimated 
weighted-average dumping margins established for all exporters and 
producers individually examined are zero, de minimis or determined 
based entirely on facts otherwise available, Commerce may use any 
reasonable method to establish the estimated weighted-average dumping 
margin for all other producers or exporters.
    In this investigation, Commerce calculated estimated weighted-
average dumping margins for Cheng Shin and Nankang that are not zero, 
de minimis, or based entirely on facts otherwise available. Commerce 
calculated the all-others rate using a weighted-average of the 
estimated weighted-average dumping margins calculated for the examined 
respondents weighted by each company's publicly-ranged total U.S. sale 
values for the merchandise under consideration.\7\
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    \7\ With two respondents under examination, Commerce normally 
calculates: (A) A weighted-average of the estimated weighted-average 
dumping margins calculated for the examined respondents; (B) a 
simple average of the estimated weighted-average dumping margins 
calculated for the examined respondents; and (C) a weighted-average 
of the estimated weighted-average dumping margins calculated for the 
examined respondents using each company's publicly-ranged U.S. sale 
quantities for the merchandise under consideration. Commerce then 
compares (B) and (C) to (A) and selects the rate closest to (A) as 
the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, please see Memorandum, ``Antidumping Duty Investigation of 
Passenger Vehicle and Light Truck Tires from Taiwan: Final 
Determination Calculation for the All-Others Rate,'' dated 
concurrently with this FR notice.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Cheng Shin Rubber Ind. Co., Ltd.............................       20.04
Nankang Rubber Tire Corp. Ltd...............................      101.84
All Others..................................................       84.75
------------------------------------------------------------------------

Disclosure

    We intend to disclose the calculations performed in this final 
determination 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, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of passenger tires from 
Taiwan, as described in Appendix I of this notice, which are entered, 
or withdrawn from warehouse, for consumption on or after January 6, 
2021, the date of publication in the Federal Register of the 
affirmative Preliminary Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), we will instruct CBP to require a cash deposit equal to the 
estimated weighted-average dumping margin or the estimated all-others 
rate, as follows: (1) The cash deposit rate for the respondents listed 
above will be equal to the company-specific estimated weighted-average 
dumping margins determined in this final determination; (2) if the 
exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin. These suspension of liquidation 
instructions will remain in effect until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to 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) of passenger tires no later than 45 days after this final 
determination. If the ITC determines that such injury does not exist, 
this proceeding will be terminated, and all cash deposits posted will 
be refunded and suspension of liquidation will be lifted. If the ITC 
determines that such injury does exist, Commerce will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by Commerce, 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, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a final 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(a)(3). Timely written 
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.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act, and 19 CFR 
351.210(c).

    Dated: May 21, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The scope of this investigation 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 investigation 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.

[[Page 28565]]

    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 these 
investigations 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 fits passenger cars or light trucks. Sizes that 
fit passenger cars and light trucks include, but are not limited to, 
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. The scope includes all tires that are of a size 
that fits passenger cars or light trucks, 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) pneumatic tires, of rubber, that are not new, including 
recycled and retreaded tires;
    (3) non-pneumatic tires, such as solid rubber tires;
    (4) 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-1R (``T'' Type Spare 
Tires for Temporary Use on Passenger Vehicles) or PCT-1B (``T'' Type 
Diagonal (Bias) 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;
    (5) tires designed and marketed exclusively as temporary use 
spare tires for light trucks which, in addition, exhibit each of the 
following physical characteristics:
    (a) The tires have a 265/70R17, 255/80R17, 265/70R16, 245/70R17, 
245/75R17, 265/70R18, or 265/70R18 size designation;
    (b) ``Temporary Use Only'' or ``Spare'' is molded into the 
tire's sidewall;
    (c) the tread depth of the tire is no greater than 6.2 mm; and
    (d) Uniform Tire Quality Grade Standards (``UTQG'') ratings are 
not molded into the tire's sidewall with the exception of 265/70R17 
and 255/80R17 which may have UTQG molded on the tire sidewall;
    (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;
    (8) Tires designed and marketed for off-road use as all-terrain-
vehicle (ATV) tires or utility-terrain-vehicle (UTV) tires, and 
which, in addition, exhibit each of the following characteristics:
    (a) 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 87 MPH or an ``N'' rating, and
    (b) both of the following physical characteristics are 
satisfied:
    (i) The size designation and load index combination molded on 
the tire's sidewall does not match any of those listed in the 
passenger car or light truck sections of the Tire and Rim 
Association Year Book, and
    (ii) The size designation and load index combination molded on 
the tire's sidewall matches any of the following size designation 
(American standard or metric) and load index combinations:

------------------------------------------------------------------------
       American standard size              Metric size        Load index
------------------------------------------------------------------------
26x10R12...........................  254/70R/12                       72
27x10R14...........................  254/65R/14                       73
28x10R14...........................  254/70R/14                       75
28x10R14...........................  254/70R/14                       86
30x10R14...........................  254/80R/14                       79
30x10R15...........................  254/75R/15                       78
30x10R14...........................  254/80R/14                       90
31x10R14...........................  254/85R/14                       81
32x10R14...........................  254/90R/14                       95
32x10R15...........................  254/85R/15                       83
32x10R15...........................  254/85R/15                       94
33x10R15...........................  254/90R/15                       86
33x10R15...........................  254/90R/15                       95
35x9.50R15.........................  241/105R/15                      82
35x10R15...........................  254/100R/15                      97
------------------------------------------------------------------------

    The products covered by this investigation 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: 4011.90.10.10, 4011.90.10.50, 
4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 
8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 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.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Nankang's Withdrawal and Request for Destruction of Business 
Proprietary Information
V. Changes from the Preliminary Determination
VI. Discussion of the Issues
    Comment 1: Whether Commerce Should Utilize Cheng Shin's 
Affiliate Sales for the Calculation of Normal Value
    Comment 2: Whether Commerce Should Treat Home Market Sales as 
Being at the Same Level of Trade
    Comment 3: Whether Commerce Should Grant Certain Post-Sale Price 
Adjustments and Inland Freight Expenses for Affiliated Sales
    Comment 4: Whether Commerce Should Exclude Certain Alleged 
``Out-of-Scope''

[[Page 28566]]

Tires from Cheng Shin's Margin Calculation
    Comment 5: Whether Commerce Should Match Control Numbers in the 
U.S. and Home Markets Based on Similarities in Product 
Characteristics
    Comment 6: Whether Commerce Should Take Tire Category into 
Account in Conducting its Matching Analysis
    Comment 7: Whether Commerce Should Exclude Home Market CONNUMs 
with Small Quantities From the Dumping Calculation
    Comment 8: Whether Commerce Should Remove Maxxis-branded Home 
Market Sales for the Calculation of Normal Value
    Comment 9: Whether Commerce Should Remove Sales Not Intended for 
Sale in the U.S. Market from Dumping Calculation
    Comment 10: Whether Commerce Should Use the A-to-A Methodology 
in the Final Determination and Refrain from Zeroing
    Comment 11: Whether Commerce Should Allow Certain Non-Operating 
Income Offsets to the Reported General and Administrative (G&A) 
Expenses
VII. Recommendation

[FR Doc. 2021-11263 Filed 5-26-21; 8:45 am]
BILLING CODE 3510-DS-P