[Federal Register Volume 87, Number 45 (Tuesday, March 8, 2022)]
[Notices]
[Pages 12929-12932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04885]


=======================================================================
-----------------------------------------------------------------------

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, 
Rescission of Review in Part, and Intent To Rescind in Part; 2020

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that certain exporters/producers of truck and bus tires from the 
People's Republic of China (China) received countervailable subsidies 
during the period of review (POR) from January 1, 2020, through 
December 31, 2020. In addition, we are rescinding the review with 
respect to seven companies and announcing our preliminary intent to 
rescind this review with respect to eight other companies. Interested 
parties are invited to comment on these preliminary results.

DATES: Applicable March 8, 2022.

FOR FURTHER INFORMATION CONTACT: Brontee Jeffries or Theodore Pearson, 
AD/CVD Operations, Enforcement and Compliance, International Trade

[[Page 12930]]

Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4656 or (202) 482-2631, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 1, 2021, Commerce published the notice of initiation of an 
administrative review of the countervailing duty (CVD) order on truck 
and bus tires from China.\1\ On October 1, 2021, Commerce exercised its 
discretion to extend the preliminary results of this administrative 
review by 120 days, until February 25, 2022.\2\
---------------------------------------------------------------------------

    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 17135 (April 1, 2021).
    \2\ See Memorandum, ``Truck and Bus Tires from the People's 
Republic of China: Extension of Deadline for Preliminary Results of 
Countervailing Duty Administrative Review; 2020,'' dated October 1, 
2021.
---------------------------------------------------------------------------

    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\3\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included as the appendix to this notice. 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of 2020 Countervailing Duty Administrative Review: Truck and 
Bus Tires from the People's Republic of China and Recission of 
Administrative Review, in Part,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Order

    The products covered by the order are truck and bus tires. For a 
complete description of the scope, see the Preliminary Decision 
Memorandum.\4\
---------------------------------------------------------------------------

    \4\ See Preliminary Decision Memorandum.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the 
Act). For each subsidy program found countervailable, we preliminarily 
find that there is a subsidy, (i.e., a government-provided financial 
contribution that gives rise to a benefit to the recipient, and that 
the subsidy is specific).\5\ For a full description of the methodology 
underlying our 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.
---------------------------------------------------------------------------

    \5\ 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.
---------------------------------------------------------------------------

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. Commerce received timely-filed 
withdrawal requests with respect to the following seven companies: 
Double Coin Tyre Group (Shanghai) Imp & Exp Co., Ltd.; Giti Tire 
(Fujian) Company Ltd.; Giti Tire (Anhui) Company Ltd.; Giti Tire Global 
Trading Pte. Ltd.; Shandong Hugerubber Co., Ltd.; Shanghai Huayi Group 
Corporation Limited; and Weifang Shunfuchang Rubber And Plastic 
Products Co., Ltd., pursuant to 19 CFR 351.213(d)(1).\6\ Because the 
withdrawal requests were timely filed, and no other parties requested a 
review of these companies, in accordance with 19 CFR 351.213(d)(1), 
Commerce is rescinding this review of the Order with respect to the 
seven companies noted above.
---------------------------------------------------------------------------

    \6\ See Shandong and Weifang's Letter, ``Truck and Bus Tires 
from the People's Republic of China--Withdrawal of Request for 
Administrative Review'', dated June 30, 2021.
---------------------------------------------------------------------------

Intent To Rescind Administrative Review, in Part

    It is Commerce's practice to rescind an administrative review of a 
countervailing duty order, pursuant to 19 CFR 351.213(d)(3), when there 
are no reviewable entries of subject merchandise during the POR for 
which liquidation is suspended.\7\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the 
countervailing duty assessment rate calculated for the review 
period.\8\ Therefore, for an administrative review of a company to be 
conducted, there must be a reviewable, suspended entry that Commerce 
can instruct U.S. Customs and Border Protection (CBP) to liquidate at 
the calculated countervailing duty assessment rate calculated for the 
review period.\9\ According to the CBP import data, there are eight 
companies subject to this review that did not have reviewable entries 
of subject merchandise during the POR for which liquidation is 
suspended. Accordingly, in the absence of reviewable, suspended entries 
of subject merchandise during the POR, we intend to rescind this 
administrative review with respect to these eight other companies, in 
accordance with 19 CFR 351.213(d)(3).\10\
---------------------------------------------------------------------------

    \7\ See, e.g., Lightweight Thermal Paper from the People's 
Republic of China: Notice of Rescission of Countervailing Duty 
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); and 
Circular Welded Carbon Quality Steel Pipe from the People's Republic 
of China: Rescission of Countervailing Duty Administrative Review; 
2017, 84 FR 14650 (April 11, 2019).
    \8\ See 19 CFR 351.212(b)(2).
    \9\ See 19 CFR 351.213(d)(3).
    \10\ The eight companies are: Chongqing Hankook Tire Co., Ltd.; 
Guangrao Kaichi Trading Co., Ltd.; Qingdao Fullrun Tyre Corp. Ltd.; 
Qingdao Honghuasheng Trade Co., Ltd.; Qingdao Kapsen Trade Co., 
Ltd.; Qingdao Sunfulcess Tyre Co., Ltd.; Shandong Habilead Rubber 
Co., Ltd.; and Shandong Qilun Rubber Co., Ltd.
---------------------------------------------------------------------------

Preliminary Rate for Non-Selected Companies Under Review

    There are eight 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.\11\ This methodology to establish the rate for the non-selected 
companies uses section 705(c)(5)(A) of the Act, which governs the 
calculation of the ``all-others'' rate in an investigation, as 
guidance. For further information on the calculation of the non-
selected respondent rate, refer to the section in the Preliminary 
Decision Memorandum

[[Page 12931]]

entitled ``Non-Selected Companies Under Review.''
---------------------------------------------------------------------------

    \11\ 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).
---------------------------------------------------------------------------

Preliminary Results of Review

    We preliminarily find the following net countervailable subsidy 
rates for the period January 1, 2020, through December 31, 2020, are as 
follows:

------------------------------------------------------------------------
                                                           Subsidy rate
                  Manufacturer/exporter                     (percent ad
                                                             valorem)
------------------------------------------------------------------------
Prinx Chengshan (Shandong) Tire Company Ltd \12\........           17.85
Qingdao Ge Rui Da Tire Company \13\.....................           17.15
------------------------------------------------------------------------
 Review-Specific Average Rate Applicable to the Following Companies \14\
------------------------------------------------------------------------
Jiangsu General Science Technology Co., Ltd.............           17.21
Jiangsu Hankook Tire Co., Ltd...........................           17.21
Qingdao Awesome International Trade Co., Ltd............           17.21
Qingdao Doublestar Tire Industrial Co., Ltd.............           17.21
Shandong Haohua Tire Co., Ltd...........................           17.21
Shandong Huasheng Rubber Co., Ltd.......................           17.21
Shandong Kaixuan Rubber Co., Ltd........................           17.21
Triangle Tyre Co., Ltd..................................           17.21
------------------------------------------------------------------------

Disclosure and Public Comment
---------------------------------------------------------------------------

    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Prinx Chengshan (Shandong) Tire Company Ltd.: 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.
    \13\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Qingdao Ge Rui Da Tire Company:Cooper Tire (China) Investment Co. 
Ltd.; Cooper Tire Asia-Pacific (Shanghai) Trading Co., Ltd.; Cooper 
(Kunshan) Tire Co., Ltd.; and Qingdao Yiyuan Investment Co., Ltd.
    \14\ This rate is based on the rate for the respondent that was 
selected for individual review, excluding rates that are zero, de 
minimis, or based entirely on facts available. See section 
735(c)(5)(A) of the Act.
---------------------------------------------------------------------------

    We will disclose to parties in this review, the calculations 
performed for these preliminary results within five days after the date 
of publication of this notice.\15\ Interested parties case briefs no 
later than 30 days after the date of publication of these preliminary 
results of review.\16\ 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.\17\ 
Note that Commerce has temporarily modified certain of its requirements 
for serving documents containing business proprietary information until 
further notice.\18\
---------------------------------------------------------------------------

    \15\ See 19 CFR 351.224(b).
    \16\ See 19 CFR 351.309(c).
    \17\ See 19 CFR 351.309(d).
    \18\ 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).
---------------------------------------------------------------------------

    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, filed 
electronically using ACCESS. An electronically-filed request must be 
received successfully, and in its entirety, by ACCESS by 5:00 p.m. 
Eastern Time, within 30 days after the date of publication of this 
notice. Hearing 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).

Cash Deposit Requirements

    Pursuant to 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. If the rate calculated in the final results is 
zero or de minimis, no cash deposit will be required on shipments of 
the subject merchandise entered or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this review.
    For all non-reviewed firms, CBP will continue to collect cash 
deposits of estimated countervailing duties at the all-others rate or 
the most recent company-specific rate applicable to the company, as 
appropriate. These cash deposit requirements, when imposed, shall 
remain in effect until further notice.

Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(1) 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, we 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 
January 1, 2020, through December 31, 2020, in accordance with 19 CFR 
351.212(c)(l)(i). For the companies remaining in the review, we intend 
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.

[[Page 12932]]

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).

Notification to Interested Parties

    These preliminary results and notice are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.213 and 351.221(b)(4).

    Dated: February 25, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix--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. Partial Rescission of Administrative Review
VI. Intent To Rescind Administrative Review, in Part
VII. Diversification of China's Economy
VIII. Use of Faces Otherwise Available and Application of Adverse 
Inferences
IX. Subsidies Valuation
X. Interest Rate Benchmarks, Discount Rates, Input, Electricity, and 
Land Benchmarks
XI. Analysis of Programs
XII. Recommendation

[FR Doc. 2022-04885 Filed 3-7-22; 8:45 am]
BILLING CODE 3510-DS-P