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«BILLING CODE: 3510-DS-P DEPARTMENT OF COMMERCE International Trade Administration [A-570-040] Truck and Bus Tires from the People’s Republic of ...»

-- [ Page 1 ] --

This document is scheduled to be published in the

Federal Register on 09/06/2016 and available online at

http://federalregister.gov/a/2016-21346, and on FDsys.gov

BILLING CODE: 3510-DS-P

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-040]

Truck and Bus Tires from the People’s Republic of China: Preliminary Affirmative

Determinations of Sales at Less Than Fair Value and Critical Circumstances, and Postponement

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

SUMMARY: The Department of Commerce (the Department) preliminarily determines that imports of truck and bus tires from the People’s Republic of China (the PRC) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2015, through December 31, 2015. The estimated margins of sales at LTFV are shown in the “Preliminary Determination” section of this notice. Interested parties are invited to comment on this preliminary determination.

DATES: Effective [INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER].

FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or Andre Gziryan, 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) 482-5760 and (202) 482-2201, respectively.

SUPPLEMENTARY INFORMATION:

Background The Department initiated this investigation on February 18, 2016.1 For a complete description of the events that followed the initiation of this investigation, see the Preliminary See Truck and Bus Tires From the People’s Republic of China: Initiation of Antidumping Duty Investigation, 81 Decision Memorandum dated concurrently with and hereby adopted by this notice. 2 A list of topics included in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is made available to the public via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at http://access.trade.gov, and to all parties in the Department’s Central Records Unit, room B8024 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/.

Scope of the Investigation The products covered by this investigation are truck and bus tires. For a full description of the scope of this investigation, see the “Scope of the Investigation” in Appendix I of this notice.

Scope Comments In accordance with the Preamble to the Department’s regulations,3 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).4 Certain interested parties commented on the scope of the investigation, as it appeared in the Initiation Notice. For a summary of the product coverage comments and rebuttal responses submitted to the record, and an accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum issued concurrently with this FR 9434 (February 25, 2016) (Initiation Notice).

See Memorandum from Associate Deputy Assistant Secretary Gary Taverman to Assistant Secretary Paul Piquado entitled, “Truck and Bus Tires from the People’s Republic of China: Decision Memorandum for Preliminary Affirmative Determinations of Sales at Less Than Fair Value and Critical Circumstances, and Postponement of Final Determination” dated concurrently with and hereby adopted by this notice (Preliminary Decision Memorandum).

See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997) (Preamble).

See Initiation Notice, 81 FR at 9435.

–  –  –

Postponement of Deadline for the Preliminary Determination The Department published the notice of postponement of preliminary determination of this investigation on June 2, 2016.6 Pursuant to sections 733(c)(1)(B)(i) and (ii) of the Tariff Act of 1930, as amended (the Act), we postponed the preliminary determination by 50 days.7 As a result of the postponement, the deadline for the preliminary determination of this investigation is August 26, 2016.

Methodology The Department is conducting this investigation in accordance with section 731 of the Act. We calculated export prices in accordance with section 772 of the Act. Because the PRC is a non-market economy, within the meaning of section 771(18) of the Act, we calculated normal value (NV) in accordance with section 773(c) of the Act. For a full discussion of the Department’s methodology, see the Preliminary Decision Memorandum.

Affirmative Preliminary Determination of Critical Circumstances On August 2, 2016, in accordance with section 733(e)(1) of the Act and 19 CFR 351.206, the petitioner8 timely filed an allegation that critical circumstances exist with respect to all imports of truck and bus tires from the PRC.9 We preliminarily determine that critical See Memorandum entitled “Truck and Bus Tires from the People’s Republic of China: Preliminary Scope Decision Memorandum,” dated concurrently with this notice (Preliminary Scope Decision Memorandum).





See Truck and Bus Tires from the People’s Republic of China: Postponement of Preliminary Determinations of Antidumping Duty Investigation, 81 FR 35332 (June 2, 2016).

Id.

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC (the petitioner).

See Letter from the petitioner, “Truck and Bus from the People’s Republic of China (A-570-040): Petitioner’s Critical Circumstances Allegation,” dated August 2, 2016.

–  –  –

(PCT), the non-selected separate rate respondents, and the PRC-wide entity.10 Combination Rates In the Initiation Notice, the Department stated that it would calculate combination rates for the respondents that are eligible for a separate rate in this investigation.11 Policy Bulletin

05.1 describes this practice.12 Preliminary Determination The Department preliminarily determines that the following weighted-average dumping

margins exist:

–  –  –

-6Megalith Industrial Group Co., Ningxia Shenzhou Tire Co., Ltd. 20.87 Ltd.

Megalith Industrial Group Co., Shaanxi Yanchang Petroleum Group Rubber 20.87 Ltd. Co., Ltd.

Megalith Industrial Group Co., Shandong Hawk International Rubber 20.87 Ltd. Industry Co., Ltd.

Megalith Industrial Group Co., Shandong Huasheng Rubber Co., Ltd. 20.87 Ltd.

Megalith Industrial Group Co., Shandong Kaixuan Rubber Co., Ltd. 20.87 Ltd.

Megalith Industrial Group Co., Sichuan Kalevei Technology Co., Ltd. 20.87 Ltd.

Megalith Industrial Group Co., Xingyuan Tire Group Co., Ltd. 20.87 Ltd.

Michelin Asia-Pacific Export Michelin Shenyang Tire Co., Ltd. 20.87 (HK) Limited Newland Tyre Int’l Limited Shandong Hawk International Rubber 20.87 Industry Co., Ltd.

Noble Manufacture Co., Ltd. Qingdao Hongchi Tyre Co., Ltd. 20.87 Philixx Tyres and Accessories Shandong Huasheng Rubber Co., Ltd. 20.87 Limited Philixx Tyres and Accessories Xingyuan Tire Group Co., Ltd. 20.87 Limited Philixx Tyres and Accessories Shandong Vheal Group Co., Ltd. 20.87 Limited Q&J Industrial Group Co., Chaoyang Langma Co., Ltd. 20.87 Limited Q&J Industrial Group Co., Qiangdao Huanghai Rubber Co., Ltd. 20.87 Limited Q&J Industrial Group Co., Shandong Hongsheng Rubber Co., Ltd. 20.87 Limited Q&J Industrial Group Co., Shandong Huasheng Rubber Co., Ltd. 20.87 Limited Q&J Industrial Group Co., Shandong Xingyuan Group 20.87 Limited Q&J Industrial Group Co., Sichuan Kailiwei Technology Co., Ltd. 20.87 Limited Qingdao Au-Shine Group Co., Shandong Gulun Rubber Co., Ltd. 20.87 Ltd.

Qingdao Champion International Shandong Cocrea Tyre Co., Ltd. 20.87 Trading Co., Ltd.

Qingdao Champion International Shandong Huasheng Rubber Co., Ltd. 20.87 Trading Co., Ltd.

Qingdao Champion International Zhucheng Sinoroad Rubber Co., Ltd. 20.87 Trading Co., Ltd.

–  –  –

As detailed in the Preliminary Decision Memorandum, Double Coin Holdings Ltd., a mandatory respondent in this investigation, did not demonstrate that it was entitled to a separate rate. Accordingly, we consider this company to be part of the PRC-wide entity.

Suspension of Liquidation In accordance with sections 733(e)(2)(A) of the Act, we will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of truck and bus tires from the PRC, as described in Appendix I, that are entered, or withdrawn from warehouse, for consumption on or after 90 days prior to the date of publication of this notice in the Federal Register, and to require a cash deposit for such entries.

Pursuant to 19 CFR 351.205(d), the Department will instruct CBP to require a cash deposit13 equal to the weighted-average amount by which NV exceeds U.S. price as follows: (1) the cash deposit rate for the exporter/producer combinations listed in the table above will be the rate identified in the table; (2) for all combinations of PRC exporters/producers of merchandise under consideration that have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate established for the PRC-wide entity; and (3) for all non-PRC exporters of merchandise under consideration which have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate applicable to the PRC exporter/producer combination that supplied that non-PRC exporter. These suspensions of liquidation instructions will remain in effect until further notice.

See Modification of Regulations Regarding the Practice of Accepting Bonds During the Provisional Measures Period in Antidumping and Countervailing Duty Investigations, 76 FR 61042 (October 3, 2011).

–  –  –

PRC-wide entity, we find that export subsidies constitute 0.41 percent14 of the preliminarily calculated countervailing duty rate in the concurrent countervailing duty investigation. Thus, we will offset the rate of 20.87 percent for PCT and the non-selected respondents eligible for a separate rate and the rate of 22.57 percent for the PRC-wide entity by countervailing duty rate attributable to export subsidies, i.e., 0.41 percent, to calculate the cash deposit rate for this investigation. Accordingly, the cash deposit rates will be 20.46 percent for PCT and the nonselected respondents eligible for a separate rate and 22.16 percent for the PRC-wide entity.

Disclosure We intend to disclose the calculations performed to parties in this proceeding within five days after public announcement of the preliminary determination in accordance with 19 CFR 351.224(b).

Verification As provided in section 782(i) of the Act, we intend to verify information relied upon in making our final determination.

Public Comment Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the final verification report is issued in this proceeding and rebuttal briefs, limited to issues raised in case The Department preliminarily determined that Export Seller’s Credit from the Export-Import Bank of China was export specific and, from this program, Double Coin and Guizhou Tyre Co., Ltd., respectively received countervailable subsidies of 0.40 percent ad valorem and 0.41 percent ad valorem. See Truck and Bus Tires From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, in Part, and Alignment of Final Determination With Final Antidumping Determination, 81 FR 43577 (July 5, 2016), and accompanying Preliminary Decision Memorandum at

29. We simple-averaged these two nearly identical export subsidy rates and calculated 0.41 percent (0.405 percent rounded up) for purposes of adjusting the cash deposit rate in this investigation. See Preliminary Decision Memorandum at 30-31 for more details.

–  –  –

to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this proceeding 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 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 document must be received successfully in its entirety by the Department’s electronic records system, ACCESS, by 5:00 p.m. Eastern Time, within 30 days after the date of publication of this notice.16 Hearing requests should contain the party’s name, address, and telephone number, the number of participants, and a list of the issues parties intend to present at the hearing. If a request for a hearing is made, the Department intends to hold the hearing at the U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 20230, at a time and location to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional Measures Section 735(a)(2) of the Act provides that a final determination may be postponed until not later than 135 days after the date of the publication of the preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by petitioners. Requests by respondents for postponement of a final antidumping determination See 19 CFR 351.309. See also 19 CFR 351.303 (for general filing requirements).

See 19 CFR 351.310(c).

–  –  –



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