[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Notices]
[Pages 38013-38015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15271]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-829]


Passenger Vehicle and Light Truck Tires From the Socialist 
Republic of Vietnam: Countervailing Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty order on passenger vehicle 
and light truck tires from the Socialist Republic of Vietnam (Vietnam).

DATES: Applicable July 19, 2021.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer, 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) 482-0410.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with sections 705(d) and 777(i) of the Tariff Act of 
1930, as amended (the Act), on May 27, 2021, Commerce published its 
affirmative final determination that countervailable subsidies are 
being provided to producers and exporters of passenger vehicle and 
light truck tires from Vietnam.\1\ On July 12, 2021, the ITC notified 
Commerce of its affirmative final determination that an industry in the 
United States is materially injured within the meaning of section 
705(b)(1)(A)(i) of the Act, by reason of

[[Page 38014]]

subsidized imports of passenger vehicle and light truck tires from 
Vietnam.\2\
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    \1\ See Passenger Vehicle and Light Truck Tires from the 
Socialist Republic of Vietnam: Final Affirmative Countervailing Duty 
Determination, 86 FR 28566 (May 27, 2021), and accompanying Issues 
and Decision Memorandum.
    \2\ See ITC Notification Letter, Investigation Nos. 701-TA-647 
and 731-TA-1517-1520 (Final), dated July 12, 2021.
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Scope of the Order

    The product covered by this order is passenger vehicle and light 
truck tires from Vietnam. For a complete description of the scope of 
the order, see the appendix to this notice.

Countervailing Duty Order

    On July 12, 2021, in accordance with sections 705(b)(1)(A)(i) and 
705(d) of the Act, the ITC notified Commerce of its final determination 
in this investigation, in which it found that an industry in the United 
States is materially injured by reason of subsidized imports of 
passenger vehicle and light truck tires from Vietnam.\3\ Therefore, in 
accordance with section 705(c)(2) of the Act, Commerce is issuing this 
countervailing duty order. Because the ITC determined that imports of 
passenger vehicle and light truck tires from Vietnam are materially 
injuring a U.S. industry, unliquidated entries of such merchandise from 
Vietnam, which are entered or withdrawn from warehouse for consumption, 
are subject to the assessment of countervailing duties.
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    \3\ Id.
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    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of passenger vehicle and light truck tires from Vietnam. With 
the exception of entries occurring after the expiration of the 
provisional measures period and before the publication of the ITC's 
final affirmative injury determination, as further described below, 
countervailing duties will be assessed on unliquidated entries of 
passenger vehicle and light truck tires from Vietnam, entered, or 
withdrawn from warehouse, for consumption on or after November 10, 
2020, the date of publication of the Preliminary Determination.\4\
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    \4\ See Passenger Vehicle and Light Truck Tires from the 
Socialist Republic of Vietnam: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination With Final Antidumping Duty Determination, 85 FR 71607 
(November 10, 2020) (Preliminary Determination).
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Suspension of Liquidation and Cash Deposits

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstitute the suspension of liquidation of passenger vehicle 
and light truck tires from Vietnam, as described in the appendix to 
this notice, effective on the date of publication of the ITC's notice 
of final affirmative determination in the Federal Register, and to 
assess, upon further instruction by Commerce, pursuant to section 
706(a)(1) of the Act, countervailing duties for each entry of the 
subject merchandise in an amount based on the net countervailable 
subsidy rates below. On or after the date of publication of the ITC's 
final injury determination in the Federal Register, CBP must require, 
at the same time as importers would deposit estimated normal customs 
duties on this merchandise, a cash deposit equal to the rates listed in 
the table below. The all-others rate applies to all producers or 
exporters not specifically listed, as appropriate.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Kumho Tire (Vietnam) Co., Ltd...........................            7.89
Sailun (Vietnam) Co., Ltd...............................            6.23
All Others..............................................            6.46
------------------------------------------------------------------------

Provisional Measures

    Section 703(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months. In the underlying investigation, Commerce 
published the Preliminary Determination on November 10, 2020. 
Therefore, the four-month period beginning on the date of the 
publication of the Preliminary Determination ended on March 9, 2021.
    In accordance with section 703(d) of the Act, we instructed CBP to 
terminate the suspension of liquidation and to liquidate, without 
regard to countervailing duties, unliquidated entries of passenger 
vehicle and light truck tires from Vietnam entered, or withdrawn from 
warehouse, for consumption, after March 9, 2021, the final day on which 
provisional measures were in effect, until and through the day 
preceding the date of publication of the ITC's final injury 
determination in the Federal Register. Suspension of liquidation will 
resume on the date of publication of the ITC's final determination in 
the Federal Register.

Notification to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to passenger vehicle and light truck tires from Vietnam pursuant to 
section 706(a) of the Act. Interested parties can find a list of 
countervailing duty orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: July 13, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The scope of this order 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 order 
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

[[Page 38015]]

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:

------------------------------------------------------------------------
                                                                   Load
             American standard size                 Metric size    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 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: 4011.90.10.10, 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.

[FR Doc. 2021-15271 Filed 7-16-21; 8:45 am]
BILLING CODE 3510-DS-P