[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33644-33646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13586]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-041]
Truck and Bus Tires From the People's Republic of China:
Preliminary Results of Countervailing Duty Administrative Review, and
Rescission of Review, in Part; 2019
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of truck and bus tires from the People's Republic of China
(China). The period of review (POR) is February 15, 2019, through
December 31, 2019. In addition, we are rescinding the review with
respect to several companies. Interested parties are invited to comment
on these preliminary results of review.
DATES: Applicable June 25, 2021.
FOR FURTHER INFORMATION CONTACT: Dusten Hom or Theodore Pearson, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: 202-482-5075 or 202-482-2631,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 15, 2019, Commerce published in the Federal Register
the countervailing duty (CVD) order on truck and bus tires from the
China.\1\ On April 8, 2020, Commerce published in the Federal Register
an initiation notice for an administrative review of the Order on 46
producers/exporters for the POR.\2\ For events that occurred since the
Initiation Notice, see the Preliminary Decision Memorandum.\3\ On June
17, 2021, the President signed into law the Juneteenth National
Independence Day Act, making June 19 a Federal holiday.\4\ Because the
Federal holiday fell on a Saturday, it was observed on Friday, June 18,
2021. Where a deadline falls on a weekend or Federal holiday, the
appropriate deadline is the next business day.\5\ Accordingly, the
deadline for these preliminary results is on June 21, 2021.
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\1\ See Truck and Bus Tires from the People's Republic of China:
Amended Final Determination and Countervailing Duty Order, 84 FR
4434 (February 15, 2019) (the Order).
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 85 FR 19730 (April 8, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of 2019 Countervailing Duty Administrative Review: Truck and
Bus Tires from the People's Republic of China and Rescission of
Administrative Review, in Part,'' dated concurrently with, and
hereby adopted by, this notice (Preliminary Decision Memorandum).
\4\ See Juneteenth National Independence Day Act, S. 475, Public
Law 117-17 (2021).
\5\ See Notice of Clarification: Application of ``Next Business
Day'' Rule for Administrative Determination Deadlines Pursuant to
the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
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Scope of the Order
The products covered by the Order are truck and bus tires from
China. For a complete description of the scope of the Order, see the
Preliminary Decision Memorandum.
Rescission of Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an
administrative review, in whole or in part, if the parties that
requested a review withdraw the request within 90 days of the date of
publication of the notice of initiation. On April 14, 2020, Sailun \6\
withdrew its request for review of Sailun Group Co., Ltd.; Sailun
(Shenyang) Tire Co., Ltd.; Sailun Group (Hong Kong) Co., Limited
(previously known as Sailun Jinyu Group (Hong Kong) Co., Limited) and
requested Commerce rescind the administrative review with respect to
these companies. In the Respondent Selection Memorandum,\7\ we stated
our intent to rescind the review of these Sailun companies because the
withdrawal of review was timely filed and no other party requested a
review of these companies. Therefore, in accordance with 19 CFR
351.213(d)(1), Commerce is rescinding this review of the Order with
respect to Sailun companies noted above.
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\6\ Sailun Group Co., Ltd.; Sailun (Shenyang) Tire Co., Ltd.;
Sailun Group (Hong Kong) Co., Limited (previously known as Sailun
Jinyu Group (Hong Kong) Co., Limited) (collectively, Sailun).
\7\ See Memorandum, ``Countervailing Duty Administrative Review
of Truck and Bus Tires from the People's Republic of China:
Respondent Selection,'' dated June 30, 2020 (Respondent Selection
Memorandum).
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Methodology
Commerce is conducting 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 countervailable, we preliminarily
determine that there is a subsidy, i.e., a financial contribution by an
``authority'' that confers a benefit to the recipient, and that the
subsidy is specific.\8\ For a full description of the methodology
underlying our preliminary conclusions, including our reliance, in
part, on adverse facts available pursuant to sections 776(a) and (b) of
the Act, see the Preliminary Decision Memorandum.
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\8\ 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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The Preliminary 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 Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/index.html. A
list of topics discussed in the Preliminary Decision Memorandum is
included as Appendix I to this notice.
[[Page 33645]]
Preliminary Rate for Non-Selected Companies Under Review
There are 41 companies for which a review was requested and not
rescinded, and which were not selected as mandatory respondents or
found to be cross-owned with a mandatory respondent. For these
companies, because the rates calculated for the mandatory respondents,
Qingdao Ge Rui Da Rubber Co., Ltd. (GRT) and Prinx Chengshan (Shandong)
Tire Co., Ltd. (PCT), were above de minimis and not based entirely on
facts available, we are applying to the non-selected companies the
average of the net subsidy rates calculated for GRT and PCT, which we
calculated using the publicly ranged sales data submitted by GRT and
PCT.\9\ This methodology to establish the all-others subsidy rate is
consistent with our practice and section 705(c)(5)(A) of the Act. For
further information on the calculation of the non-selected respondent
rate, refer to the section in the Preliminary Decision Memorandum
entitled ``Non-Selected Companies Under Review.'' For a list of non-
selected companies, see Appendix II.
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\9\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates 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).
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Preliminary Results of the Review
In accordance with 19 CFR 351.221(b)(4)(i), we calculated a
countervailable subsidy rate for each of the mandatory respondents, GRT
and PCT, which includes their cross-owned affiliates, where applicable.
We preliminarily find the countervailable subsidy rates for the
mandatory and non-selected respondents under review to be as follows:
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\10\ Cross-owned affiliates are Chengshan Group Co., Ltd.,
Shanghai Chengzhan Information and Technology Center, Prinx
Chengshan (Qingdao) Industrial Research & Design Co., Ltd., and
Shandong Prinx Chengshan Tire Technology Research Co., Ltd.
\11\ Cross-owned affiliates are Cooper Tire (China) Investment
Co. Ltd., Cooper (Kunshan) Tire Co., Ltd., and Qingdao Yiyuan
Investment Co., Ltd.
\12\ See Appendix II.
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Subsidy rate
Producer/exporter (percent)
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Prinx Chengshan (Shandong) Tire Co., Ltd.\10\........... 17.04
Qingdao Ge Rui Da Rubber Co., Ltd.\11\.................. 16.62
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Review-Specific Average Rate Applicable to the Following Companies
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Other Respondents \12\.................................. 16.76
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Disclosure and Public Comment
We intend to disclose to interested parties the calculations
performed for these preliminary results within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b).
Interested parties may submit case briefs no later than 30 days after
the date of publication of these preliminary results of review.\13\
Rebuttals to case briefs may be filed no later than seven days after
the case briefs are filed, and all rebuttal comments must be limited to
comments raised in the case briefs.\14\ Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information until further notice.\15\
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\13\ See 19 CFR 351.309(c).
\14\ See 19 CFR 351.309(d).
\15\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10,
2020).
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Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit
case briefs or rebuttal briefs in this review are encouraged to submit
with each argument: (1) A statement of the issue; (2) a brief summary
of the argument; and (3) a table of authorities.
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
parties will be notified of the date and time for the hearing to be
determined.
Unless extended, we intend to issue the final results of this
administrative review, which will include the results of our analysis
of the issues raised in the case briefs, within 120 days of publication
of these preliminary results in the Federal Register, pursuant to
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).
Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily
assigned subsidy rates in the amounts shown above for the producer/
exporters shown above. Upon completion of the administrative review,
consistent with section 751(a)(2)(C) of the Act and 19 CFR
351.212(b)(2), Commerce shall determine, and CBP shall assess,
countervailing duties on all appropriate entries covered by this
review. For the companies for which this review is rescinded, Commerce
will instruct CBP to assess countervailing duties on all appropriate
entries at a rate equal to the cash deposit of estimated countervailing
duties required at the time of entry, or withdrawal from warehouse, for
consumption, during the period February 15, 2019, through December 31,
2019, in accordance with 19 CFR 351.212(c)(l)(i). For the companies
remaining in the review, Commerce intends to issue assessment
instructions to CBP no earlier than 35 days after the date of
publication of the final results of this review in the Federal
Register. If a timely summons is filed at the U.S. Court of
International Trade, the assessment instructions will direct CBP not to
liquidate relevant entries until the time for parties to file a request
for a statutory injunction has expired (i.e., within 90 days of
publication).
Cash Deposit Requirements
In accordance with section 751(a)(2)(C) of the Act, Commerce
intends, upon publication of the final results, to instruct CBP to
collect cash deposits of estimated countervailing duties in the amounts
shown for each of the respondents listed above on shipments of subject
merchandise entered, or withdrawn from warehouse, for consumption on or
after the date of publication of the final results of this
administrative review. For all non-reviewed firms, CBP will continue to
collect cash deposits at the most recent company-specific or all-others
rate applicable to the company, as appropriate. These cash deposit
requirements, when imposed, shall remain in effect until further
notice.
Notification to Interested Parties
These preliminary results are issued and published pursuant to
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).
[[Page 33646]]
Dated: June 21, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Non-Selected Companies Under Review
V. Diversification of China's Economy
VI. Partial Rescission of the Administrative Review
VII. Use of Facts Otherwise Available and Application of Adverse
Inferences
VIII. Subsidies Valuation
IX. Interest Rate Benchmarks, Discount Rates, Inputs, Electricity,
and Land Benchmarks
X. Analysis of Programs
XI. Recommendation
Appendix II
List of Companies Not Individually Examined
1. Aeolus Tyre Co., Ltd.
2. Chaoyang Long March Tyre Co., Ltd.
3. Doublestar International Trading (Hongkong) Co., Limited
4. Giti Radial Tire (Anhui) Company
5. Giti Tire (Fujian) Company Ltd.
6. Giti Tire Global Trading Pte Ltd.
7. Guangrao Kaichi Trading Co., Ltd.
8. Guizhou Tyre Co., Ltd.
9. Guizhou Tyre Import and Export Co., Ltd.
10. Hefei Wanli Tire Co., Ltd.
11. Hongtyre Group Co.
12. Jiangsu General Science Technology Co., Ltd.
13. Koryo International Industrial Limited
14. Maxon Int'l Co., Limited
15. Megalith Industrial Group Co., Limited
16. Qingdao Awesome International Trade Co., Ltd
17. Qingdao Doublestar Overseas Trading Co., Ltd.
18. Qingdao Doublestar Tire Industrial Co., Ltd.
19. Qingdao Fullrun Tyre Corp. Ltd
20. Qingdao Jinhaoyang International Co., Ltd.
21. Qingdao Keter International Co., Limited
22. Qingdao Lakesea Tyre Co., Ltd
23. Qingdao Powerich Tyre Co., Ltd.
24. Qingdao Shinego Tire Tech Co., Limited (also known as Qingdao
Shinego Tyre Tech Co., Ltd.)
25. Qingdao Sunfulcess Tyre Co., Ltd.
26. Shandong Habilead Rubber Co., Ltd.
27. Shandong Haohua Tire Co., Ltd.
28. Shandong Huasheng Rubber Co., Ltd
29. Shandong Hugerubber Co., Ltd.
30. Shandong Kaixuan Rubber Co., Ltd
31. Shandong Province Sanli Tire Manufactured Co., Ltd
32. Shandong Qilun Rubber Co., Ltd.
33. Shandong Transtone Tyre Co., Ltd
34. Shandong Wanda Boto Tyre Co., Ltd.
35. Shandong Yongsheng Rubber Group Co., Ltd.
36. Shanghai Huayi Group Corporation Limited
37. Shengtai Tyre Co., Ltd.
38. Sichuan Kalevei Technology Co., Ltd.
39. Tongli Tyre Co., Ltd.
40. Triangle Tyre Co., Ltd.
41. Weifang Shunfuchang Rubber and Plastic Products Co., Ltd.
[FR Doc. 2021-13586 Filed 6-24-21; 8:45 am]
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