[Federal Register Volume 88, Number 132 (Wednesday, July 12, 2023)]
[Notices]
[Pages 44260-44261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14754]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-041]


Truck and Bus Tires From the People's Republic of China: Final 
Results and Partial Recission of Countervailing Duty Administrative 
Review; 2021

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies were provided to certain exporters/producers 
of truck and bus tires from the People's Republic of China (China) 
during the period of review (POR) January 1, 2021, through December 31, 
2021. Commerce is also rescinding the review with respect to one 
company that had no reviewable entries during the POR.

DATES: Applicable July 12, 2023.

FOR FURTHER INFORMATION CONTACT: Ted 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) 482-2631.

SUPPLEMENTARY INFORMATION:

Background

    On December 1, 2022, Commerce published the preliminary results of 
this administrative review in the Federal Register.\1\ From April 17 
through 18, 2023, we conducted an onsite verification of the financing 
of the U.S. importers and customers of the mandatory respondent, 
Qingdao Ge Rui Da Rubber Co., Ltd. (GRT), for the export buyer's credit 
program. On April 27, 2023, we released the verification report to 
interested parties.\2\
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    \1\ See 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; 2021, 
88 FR 13423 (March 3, 2023) (Preliminary Results), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Verification of the Export Buyer's Credit 
Questionnaire Responses of Qingdao Ge Rui Da Rubber Co., Ltd.,'' 
dated April 27, 2023.
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    For a complete description of the events that occurred since the 
Preliminary Results, see the Issues and Decision Memorandum.\3\
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Countervailing Duty Administrative Review of 
Truck and Bus Tires from the People's Republic of China; 2021,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
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Scope of the Order 4
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    \4\ 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) (Order).
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    The products covered by the scope of the Order are truck and bus 
tires from China. A full description of the scope of the Order is 
contained in the Issues and Decision Memorandum.

Analysis of Comments Received

    All issues raised by the interested parties in their case and 
rebuttal briefs are addressed in the Issues and Decision Memorandum. A 
list of topics discussed in the Issues and Decision Memorandum is 
provided in the appendix to this notice. 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.

Changes Since the Preliminary Results

    Based on our analysis of comments from interested parties and the 
evidence on the record, we revised the calculation of the net 
countervailable subsidy rates for GRT. For a discussion of the issues, 
see the Issues and Decision Memorandum.

Methodology

    Commerce conducted this administrative 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 to be countervailable, we 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 complete description of the 
methodology underlying all of Commerce's conclusions, including our 
reliance, in part, on facts otherwise available, including adverse 
facts available, pursuant to sections 776(a) and (b) of the Act, see 
the Issues and Decision Memorandum.
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    \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.
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Partial Rescission of Review

    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.\6\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the 
countervailing duty assessment rate calculated for the review 
period.\7\ Therefore, for an administrative review of 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.\8\
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    \6\ 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).
    \7\ See 19 CFR 351.212(b)(2).
    \8\ See 19 CFR 351.213(d)(3).
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    We continue to find that one company subject to this review, 
Chongqing Hankook Tire Co., Ltd. (Chongqing Hankook), did not have 
reviewable entries of subject merchandise for which liquidation is 
suspended. Because there is no evidence on the record to indicate that 
Chongqing Hankook had entries, exports, or sales of subject merchandise 
during the POR, we are rescinding this review with respect to Chongqing 
Hankook consistent with 19 CFR 351.213(d)(3).

Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not address the 
establishment of a rate to be applied to companies not selected for 
individual examination when Commerce limits its examination in an 
administrative review pursuant to section 777A(e)(2) of the Act. 
However, Commerce normally determines the rates for non-selected

[[Page 44261]]

companies in reviews in a manner that is consistent with section 
705(c)(5) of the Act, which provides the basis for calculating the all-
others rate in an investigation. Section 705(c)(5)(A)(i) of the Act 
instructs Commerce, as a general rule, to calculate the all-others rate 
equal to the weighted average of the countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding any zero or de minimis countervailable subsidy rates, and any 
rates determined entirely on the basis of facts available.
    There are four 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 GRT, the mandatory respondent. For these 
non-selected companies, because the rate calculated for the only 
participating mandatory respondent in this review, GRT, was above de 
minimis and not based entirely on facts available, we are applying 
GRT's subsidy rate to the four non-selected companies.
    This is the same methodology Commerce applied in the Preliminary 
Results for determining a rate for companies not selected for 
individual examination. However, due to changes in the calculation for 
GRT, we revised the non-selected rate accordingly. Consequently, for 
the four non-selected companies for which a review was requested and 
not rescinded, we are applying an ad valorem subsidy rate of 14.98 
percent.

Final Results of Review

    We determine find the net countervailable subsidy rates for the 
mandatory and non-selected respondents under review for the period 
January 1, 2021, through December 31, 2021, to be as follows:

------------------------------------------------------------------------
                                                           Subsidy rate
                  Producer or exporter                      (percent ad
                                                             valorem)
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Qingdao Ge Rui Da Rubber Co., Ltd.\9\...................           14.98
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   Review-Specific Average Rate Applicable to the Following Companies
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Bridgestone (Shenyang) Tire Co., Ltd....................           14.98
Jiangsu Hankook Tire Co., Ltd...........................           14.98
Joyall (Weihai) Tire Co., Ltd...........................           14.98
Triangle Tyre Co., Ltd..................................           14.98
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Disclosure
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    \9\ Commerce finds the following companies to be cross-owned 
with Qingdao Ge Rui Da Rubber Co., Ltd.: Cooper Tire (China) 
Investment Co. Ltd.; Cooper (Kunshan) Tire Co., Ltd.; Qingdao Yiyuan 
Investment Co., Ltd.; Goodyear Dalian Tire Company Limited; and 
Goodyear Tire Management Company (Shanghai) Ltd. In the Preliminary 
Results, we inadvertently included Cooper Tire Asia-Pacific 
(Shanghai) Trading Co., Ltd. (CTAP) among the cross-owned companies. 
However, as discussed in the accompanying Preliminary Decision 
Memorandum (PDM), we found that CTAP did not satisfy our attribution 
criteria during the POR. See Preliminary Results PDM at 22. 
Therefore, we are not including CTAP in the list of companies found 
be cross-owned in this review.
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    Commerce intends to disclose calculations and analysis performed 
for the final results of review within five days after the date of 
publication of this notice in the Federal Register in accordance with 
19 CFR 351.224(b).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce also 
intends to instruct CBP to collect cash deposits of estimated 
countervailing duties in the amounts shown above for the above-listed 
companies with regard to shipments of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of these final results of review. For all non-reviewed 
firms, we will instruct CBP to 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, effective upon publication of these 
final results, shall remain in effect until further notice.

Assessment Requirements

    In accordance with section 751(a)(2)(C) of the Act and 19 CFR 
351.212(b)(2), Commerce has determined, and U.S. Customs and Border 
Protection (CBP) shall assess, countervailing duties on all appropriate 
entries covered by this review, for the above-listed companies at the 
applicable ad valorem assessment rates listed. Commerce intends to 
issue assessment instructions to CBP no earlier than 35 days after 
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).

Administrative Protective Order

    This notice also serves as a final reminder to parties subject to 
an 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 the return or destruction of APO materials or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    The final results are issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5).

    Dated: July 6, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
V. Non-Selected Rate
VI. Subsidies Valuation
VII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VIII. Analysis of Programs
IX. Discussion of Issues
    Comment 1: Whether the Provision of Inputs for Less Than 
Adequate Remuneration (LTAR) Constitutes a Financial Contribution
    Comment 2: Whether Commerce Appropriately Found That the 
Provision of Land-Use Rights for LTAR Constitutes a Financial 
Contribution
    Comment 3: Whether the Provision of Electricity for LTAR Is 
Countervailable
    Comment 4: Whether the Benchmark for Electricity Includes Value-
Added Tax (VAT)
    Comment 5: Whether Commerce Should Revise the Calculation of 
Various Input LTAR Programs
    Comment 6: Whether Commerce Should Revise the Sales Denominator 
for a Parent Company
    Comment 7: Whether Commerce Should Update the Loan Benchmarks 
Used for Government Policy Lending
    Comment 8: Whether the Respondent Failed Verification for the 
Export Buyer's Credit (EBC) Program
    Comment 9: Whether Commerce Should Make an Adjustment to the 
Benchmark Used To Value the Provision of Land-Use Rights
    Comment 10: Whether Commerce Should Revise the Sales Denominator 
Calculated for an Input Supplier
X. Recommendation

[FR Doc. 2023-14754 Filed 7-11-23; 8:45 am]
BILLING CODE 3510-DS-P