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
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Issuing agencies
Abstract
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.
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<title>Federal Register, Volume 87 Issue 45 (Tuesday, March 8, 2022)</title>
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[Federal Register Volume 87, Number 45 (Tuesday, March 8, 2022)]
[Notices]
[Pages 12929-12932]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-04885]
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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,
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\
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\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.
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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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\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).
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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\
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\4\ See Preliminary Decision Memorandum.
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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.
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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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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.
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\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.
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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\
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\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.
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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.''
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\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).
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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:
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Subsidy rate
Manufacturer/exporter (percent ad
valorem)
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Prinx Chengshan (Shandong) Tire Company Ltd \12\........ 17.85
Qingdao Ge Rui Da Tire Company \13\..................... 17.15
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Review-Specific Average Rate Applicable to the Following Companies \14\
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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
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Disclosure and Public Comment
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\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.
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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\
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\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).
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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, 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
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