[Federal Register Volume 86, Number 101 (Thursday, May 27, 2021)]
[Notices]
[Pages 28559-28563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11266]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-828]


Passenger Vehicle and Light Truck Tires From the Socialist 
Republic of Vietnam: Final 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 the 
Socialist Republic of Vietnam (Vietnam) are being, or are likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation is

[[Page 28560]]

October 1, 2019, through March 31, 2020.

DATES: Applicable May 27, 2021.

FOR FURTHER INFORMATION CONTACT: Jasun Moy or Robert Scully, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-8194 or (202) 482-0572, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 6, 2021, Commerce published in the Federal Register the 
preliminary affirmative determination in the LTFV investigation of 
passenger tires from Vietnam, 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 the 
Socialist Republic of Vietnam: Preliminary Affirmative Determination 
of Sales at Less Than Fair Value, Postponement of Final 
Determination, and Extension of Provisional Measures, 86 FR 504 
(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 the 
Socialist Republic of Vietnam,'' dated concurrently with, and hereby 
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 
Vietnam. 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 the 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 as 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/index.html.

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 an 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 Letter, ``Request for Documentation,'' dated 
January 26, 2021; Commerce's Letter, ``Request for Documentation,'' 
dated January 28, 2021; Sailun's Letter, ``Sailun Response to 
Commerce Verification Document Request,'' dated February 2, 2021; 
and Kenda's Letter, ``Response to the Department's Request for 
Documentation in Lieu of On-Site Verification,'' dated February 4, 
2021.
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Methodology

    Commerce conducted this investigation in accordance with section 
731 of the Act. Export price was calculated in accordance with section 
772(a) of the Act. Constructed export price was calculated in 
accordance with section 772(b) of the Act. Because Vietnam is a non-
market economy within the meaning of section 771(18) of the Act, normal 
value was calculated in accordance with section 773(c) of the Act. For 
a full description of the methodology underlying Commerce's 
determination, see the Preliminary Determination PDM and the Issues and 
Decision Memorandum.

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 on-site verification, 
we have made certain changes to the margin calculations. For a 
discussion of these changes, see the Issues and Decision Memorandum.

Vietnam-Wide Entity

    For the final determination, we continue to find that the use of 
adverse facts available (AFA), pursuant to sections 776(a) and (b) of 
the Act, is warranted in determining the rate for the Vietnam-wide 
entity. In the Preliminary Determination, Commerce based the AFA rate 
for the Vietnam-wide entity on the petition margin of 22.30 percent.\7\ 
For this final determination, we continue to rely on AFA in determining 
the rate for the Vietnam-wide entity and, as AFA, we continue to select 
the highest petition margin of 22.30 percent as the estimated weighted-
average dumping margin for the Vietnam-wide entity.\8\
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    \7\ See Preliminary Determination PDM at 18.
    \8\ For the corroboration of this margin, see Issues and 
Decision Memorandum at Comment 1.
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Combination Rates

    In the Initiation Notice,\9\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\10\ In this investigation, we assigned 
producer/exporter combination rates for respondents eligible for 
separate rates and these combination rates are listed in the table in 
the ``Final Determination'' section of this notice.
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    \9\ See Initiation Notice, 85 FR at 38858.
    \10\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' April 5, 2005 (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination

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

[[Page 28561]]



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                                                                                                  Cash deposit
                                                                                 Estimated       rate (adjusted
                  Exporter                              Producer              weighted-average     for subsidy
                                                                               dumping margin        offset)
                                                                                 (percent)          (percent)
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Kenda Rubber (Vietnam) Co. Ltd.............  Kenda Rubber (Vietnam) Co. Ltd               0.00              0.00
Sailun Group (HongKong) Co., Limited/Sailun  Sailun (Vietnam) Co., Ltd.....               0.00              0.00
 Tire Americas Inc.
Bridgestone Corporation....................  Bridgestone Tire Manufacturing               0.00              0.00
                                              Vietnam LLC.
Bridgestone Tire Manufacturing Vietnam LLC.  Bridgestone Tire Manufacturing               0.00              0.00
                                              Vietnam LLC.
Kumho Tire (Vietnam) Co., Ltd..............  Kumho Tire (Vietnam) Co., Ltd.               0.00              0.00
The Yokohama Rubber Co., Ltd...............  Yokohama Tyre Vietnam Co......               0.00              0.00
Vietnam-Wide Entity........................  ..............................              22.30             22.27
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Disclosure

    We intend to disclose the calculations performed in this final 
determination within five days of its public announcement or, if there 
is no public announcement, 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 the liquidation of all appropriate entries of subject 
merchandise, as described in Appendix I of this notice, 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, except for those entries of subject 
merchandise produced and exported by Kenda and entries of subject 
merchandise produced by Sailun Vietnam and exported by Sailun Group 
(HongKong) Co., Limited or Sailun Tire Americas Inc. (collectively, 
Sailun).
    Because the estimated weighted-average dumping margins for Kenda 
and Sailun in the above-specified producer/exporter combinations are 
zero, entries of shipments of subject merchandise from these producer/
exporter combinations will not be subject to suspension of liquidation 
or cash deposit requirements. Accordingly, Commerce will direct CBP not 
to suspend liquidation of entries of subject merchandise produced and 
exported by Kenda, and produced by Sailun Vietnam and exported by 
Sailun Group (HongKong) Co., Limited or Sailun Tire Americas Inc. In 
accordance with section 735(a)(4) of the Act and 19 CFR 351.204(e)(1), 
should the investigation result in an antidumping duty (AD) order 
pursuant to section 736 of the Act, entries of shipments of subject 
merchandise from these producer/exporter combinations will be excluded 
from the order. However, entries of shipments of subject merchandise 
from these companies in any other producer/exporter combinations, or by 
third parties that sourced subject merchandise from the excluded 
producer/exporter combinations, will be subject to suspension of 
liquidation at the Vietnam-wide entity rate. Additionally, any 
exclusion will not apply to entries of shipments of subject merchandise 
from the other producer/exporter combinations listed in the table above 
that were assigned a weighted-average dumping margin of zero.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), where appropriate, we will instruct CBP to require a cash 
deposit for entries of subject merchandise equal to the estimated 
weighted-average dumping margin as follows: (1) For the exporter/
producer combinations listed in the table above, except those specified 
for Kenda and Sailun Vietnam/Sailun Group (HongKong) Co., Limited/
Sailun Tire Americas Inc., the cash deposit rate is equal to the 
estimated weighted-average dumping margin listed for that combination 
in the table; (2) for all combinations of Vietnamese exporters/
producers not listed in the above table, the cash deposit rate is equal 
to the estimated weighted-average dumping margin listed in the table 
for the Vietnam-wide entity; and (3) for all non-Vietnamese exporters 
not listed in the table above, the cash deposit rate applicable to the 
Vietnamese exporter/producer combination (or the Vietnam-wide entity) 
that supplied that non-Vietnamese exporter.
    Commerce normally adjusts cash deposits for estimated antidumping 
duties by the amount of domestic subsidy pass-through and export 
subsidies countervailed in a companion countervailing duty (CVD) 
proceeding when CVD provisional measures are in effect. Accordingly, 
where Commerce made an affirmative determination for domestic subsidy 
pass-through or export subsidies, Commerce has offset the estimated 
weighted-average dumping margins by the appropriate rates.\11\ However, 
provisional measures are no longer in effect in the companion CVD case. 
Therefore, we are not instructing CBP to collect cash deposits based 
upon the estimated the estimated weighted-average dumping margins 
adjusted for domestic subsidy pass-through or export subsidies at this 
time.
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    \11\ See Issues and Decision Memorandum; see also Memorandum, 
``Calculation of Double Remedies and Export Subsidy Offset,'' dated 
December 29, 2020.
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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) for importation 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 AD 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

[[Page 28562]]

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 in 
accordance with 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.
    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 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, 245/70R18, 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:

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       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
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[[Page 28563]]

    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. Changes Since the Preliminary Determination
V. Adjustment under Section 777A(f) of the Act
VI. Adjustments to Cash Deposit Rates for Export Subsidies
VII. Discussion of the Issues
    Comment 1: Appropriate Adverse Facts Available (AFA) Rate for 
the Vietnam-Wide Entity
    Comment 2: Selecting Kumho Tire (Vietnam) Co., Ltd. (KTV) as a 
Voluntary Respondent
    Comment 3: KTV's Request to Be Excluded from the Order
    Comment 4: Whether Kenda's Rate Should Be Based on AFA
    Comment 5: Whether Sailun's Rate Should Be Based on AFA
    Comment 6: Classification of U.S. Sales as Export Price (EP) or 
Constructed Export Price (CEP)
    Comment 7: Surrogate Value (SV) for Ocean Freight for Sailun's 
Sales
    Comment 8: SV of Bead Wire
    Comment 9: Other Issues Raised by Sailun
VIII. Recommendation

[FR Doc. 2021-11266 Filed 5-26-21; 8:45 am]
BILLING CODE 3510-DS-P