82_FR_8623 82 FR 8606 - Truck and Bus Tires From the People's Republic of China: Final Affirmative Countervailing Duty Determination, Final Affirmative Critical Circumstances Determination, in Part

82 FR 8606 - Truck and Bus Tires From the People's Republic of China: Final Affirmative Countervailing Duty Determination, Final Affirmative Critical Circumstances Determination, in Part

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 17 (January 27, 2017)

Page Range8606-8608
FR Document2017-01862

The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of truck and bus tires from the People's Republic of China (PRC). For information on the estimated subsidy rates, see the ``Final Determination'' section of this notice. The period of investigation is January 1, 2015, through December 31, 2015.

Federal Register, Volume 82 Issue 17 (Friday, January 27, 2017)
[Federal Register Volume 82, Number 17 (Friday, January 27, 2017)]
[Notices]
[Pages 8606-8608]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01862]


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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 
Affirmative Countervailing Duty Determination, Final Affirmative 
Critical Circumstances Determination, in Part

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

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of truck and bus tires from the People's Republic of China (PRC). For 
information on the estimated subsidy rates, see the ``Final 
Determination'' section of this notice. The period of investigation is 
January 1, 2015, through December 31, 2015.

DATES: Effective January 27, 2017.

FOR FURTHER INFORMATION CONTACT: Jennifer Shore or Mark Kennedy, 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) 482-2778 or (202) 482-7883, 
respectively.

Background

    The Department published the Preliminary Determination on July 5, 
2016.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Issues and Decision Memorandum.\2\ 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 http://access.trade.gov, and is available to all 
parties in the Central Records Unit, Room B8024 of the main Department 
of Commerce building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum 
and the electronic version are identical in content.
---------------------------------------------------------------------------

    \1\ 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) (Preliminary 
Determination) and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for 
Enforcement and Compliance, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Truck and Bus Tires from the People's Republic of China,'' dated 
concurrently with this determination (Issues and Decision 
Memorandum) and hereby adopted by this notice.
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are truck and bus tires 
from the PRC. For a full description of the scope of the investigation, 
see Appendix I.

Scope Comments

    Since the Preliminary Determination, the Department has received 
comments on the scope of this investigation from the parties in this 
investigation. See Issues and Decision Memorandum for further details. 
The scope in Appendix I reflects the final scope language.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix II.

Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available and, because the Government of China and a 
respondent company did not act to the best of their abilities in 
responding to the Department's requests for information, we drew an 
adverse inference where appropriate in selecting from among the facts 
otherwise available, pursuant to section 776(a) and (b) of the Tariff 
Act of 1930, as amended, (the Act). For further information, see the 
section ``Use of Facts Otherwise Available and Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of information requested and received from 
the GOC and the company respondents since the Preliminary 
Determination, the results of verification, and the comments received 
from parties, we have made certain changes to the respondents' subsidy 
rate calculations. For discussion

[[Page 8607]]

of these changes, see the Issues and Decision Memorandum.

Final Determination of Critical Circumstances, in Part

    In the Preliminary Determination, the Department found that 
critical circumstances exist with respect to truck and bus tires from 
the PRC produced and/or exported by Guizhou Tyre Co., Ltd. (GTC) and 
its cross-owned trading company, Guizhou Tyre Import and Export Co., 
Ltd. (GTCIE), but did not exist for Double Coin or all other companies. 
Upon further analysis of the data following the Preliminary 
Determination, under section 705(a)(2) of the Act, we continue to find 
that critical circumstances do not exist with respect to imports of 
truck and bus tires from the PRC for Double Coin and that critical 
circumstances exist with respect to imports of truck and bus tires from 
the PRC for GTC and GTCIE. In addition, for purposes of this final 
determination, we find that critical circumstances exist with respect 
to imports of truck and bus tires from the PRC for all other companies. 
A discussion of our determination can be found in the Issues and 
Decision Memorandum.

Final Determination

    We determine that countervailable subsidies are being provided with 
respect to the manufacture, production, or exportation of the subject 
merchandise. In accordance with section 705(c)(1)(B)(i)(I) of the Act, 
we calculated a CVD rate for each individually-investigated producer/
exporter of the subject merchandise. In accordance with section 
705(c)(5)(A)(i) of the Act, for companies not individually examined, we 
apply an ``all-others'' rate, which is normally calculated by weighting 
the subsidy rates of the mandatory respondents by those companies' 
exports of the subject merchandise to the United States. Under section 
705(c)(5)(A)(i) of the Act, the all-others rate should exclude zero and 
de minimis rates or any rates based entirely on facts otherwise 
available pursuant to section 776 of the Act. Neither of the mandatory 
respondents' rates in this final determination was zero or de minimis 
or based entirely on facts otherwise available. In order to ensure that 
business proprietary information is not disclosed, we have calculated 
the all-others rate as a simple average of the countervailable subsidy 
rates found for the two mandatory respondents.\3\
---------------------------------------------------------------------------

    \3\ See Memorandum to the File, ``Calculation of the All-Others 
Rate'' dated concurrently with this final determination.
---------------------------------------------------------------------------

    We determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                           Subsidy Rate
                         Company                             (percent)
------------------------------------------------------------------------
Shanghai Huayi Group Corporation Limited; Double Coin              38.61
 Holdings Ltd.; Double Coin Group (Jiangsu) Tyre Co.,
 Ltd.; Double Coin Group (Chongqing) Tyre Co., Ltd.;
 Double Coin Group Shanghai Donghai Tyre Co. Ltd.;
 Double Coin Group (Xinjiang) Kunlun Tyre Co., Ltd......
Guizhou Tyre Import and Export Co., Ltd.; Guizhou Tyre             65.46
 Co., Ltd...............................................
All-Others..............................................           52.04
------------------------------------------------------------------------

Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of truck 
and bus tires from the PRC exported by Double Coin and all other 
companies that were entered, or withdrawn from warehouse, for 
consumption on or after July 5, 2016, the date of the publication of 
the Preliminary Determination in the Federal Register. With respect to 
entries of subject merchandise exported by GTC and GTCIE, as a result 
of our preliminary affirmative critical circumstances determination, we 
instructed CBP to suspend liquidation of entries that were entered, or 
withdrawn from warehouse, for consumption on or after April 6, 2016, 
which is 90 days before the date of the publication of the Preliminary 
Determination in the Federal Register. At that time, we also instructed 
CBP to collect cash deposits of estimated countervailing duties at the 
rates determined in the Preliminary Determination for such entries of 
merchandise. In accordance with section 703(d) of the Act, we 
instructed CBP to discontinue the suspension of liquidation for CVD 
purposes for subject merchandise entered, or withdrawn from warehouse, 
on or after November 2, 2016, but to continue the suspension of all 
entries from April 6, 2016, or July 5, 2016 (for GTC and GTCIE, or 
Double Coin and all other companies, respectively) through November 1, 
2016, as appropriate.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. On the basis of our 
final affirmative critical circumstances determination, we will 
instruct CBP to suspend liquidation on entries of truck and bus tires 
from China for all other companies effective April 6, 2016. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information relating to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/

[[Page 8608]]

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 violation that is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

     Dated: January 19, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The scope of the investigation covers truck and bus tires. Truck 
and bus tires are new pneumatic tires, of rubber, with a truck or 
bus size designation. Truck and bus tires covered by this 
investigation may be tube-type, tubeless, radial, or non-radial.
    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 one of the following suffixes in their tire size designation, 
which also appear on the sidewall of the tire:
    TR--Identifies tires for service on trucks or buses to 
differentiate them from similarly sized passenger car and light 
truck tires; and
    HC--Identifies a 17.5 inch rim diameter code for use on low 
platform trailers.
    All tires with a ``TR'' or ``HC'' suffix in their size 
designations are covered by this investigation regardless of their 
intended use.
    In addition, all tires that lack one of the above suffix 
markings are included in the scope, regardless of their intended 
use, as long as the tire is of a size that is among the numerical 
size designations listed in the ``Truck-Bus'' section of the Tire 
and Rim Association Year Book, as updated annually, unless the tire 
falls within one of the specific exclusions set out below.
    Truck and bus tires, whether or not mounted on wheels or rims, 
are included in the scope. However, if a subject tire is imported 
mounted on a wheel or rim, only the tire is covered by the scope. 
Subject merchandise includes truck and bus tires produced in the 
subject country whether mounted on wheels or rims in the subject 
country or in a third country. Truck and bus tires are covered 
whether or not they are accompanied by other parts, e.g., a wheel, 
rim, axle parts, bolts, nuts, etc. Truck and bus tires that enter 
attached to a vehicle are not covered by the scope.
    Specifically excluded from the scope of this investigation are 
the following types of tires: (1) Pneumatic tires, of rubber, that 
are not new, including recycled and retreaded tires; (2) non-
pneumatic tires, such as solid rubber tires; and (3) tires that 
exhibit each of the following physical characteristics: (a) The 
designation ``MH'' is molded into the tire's sidewall as part of the 
size designation; (b) the tire incorporates a warning, prominently 
molded on the sidewall, that the tire is for ``Mobile Home Use 
Only;'' and (c) the tire is of bias construction as evidenced by the 
fact that the construction code included in the size designation 
molded into the tire's sidewall is not the letter ``R.''
    The subject merchandise is currently classifiable under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 
4011.20.1015 and 4011.20.5020. Tires meeting the scope description 
may also enter under the following HTSUS subheadings: 4011.69.0020, 
4011.69.0090, 4011.70.00, 4011.90.80, 4011.99.4520, 4011.99.4590, 
4011.99.8520, 4011.99.8590, 8708.70.4530, 8708.70.6030, 
8708.70.6060, and 8716.90.5059.\4\
---------------------------------------------------------------------------

    \4\ On August 26, 2016, the Department included HTSUS 
subheadings 4011.69.0020, 4011.69.0090, and 8716.90.5059 to the case 
reference files, pursuant to requests by CBP and the petitioner. See 
Memorandum to the File entitled, ``Requests from Customs and Border 
Protection and the Petitioner to Update the ACE Case Reference 
File,'' dated August 26, 2016. On January 19, 2017, the Department 
included HTSUS subheadings 4011.70.00 and 4011.90.80 to the case 
reference files, pursuant to requests by CBP. See Memorandum to the 
File entitled, ``Requests from Customs and Border Protection to 
Update the ACE Case Reference File,'' dated January 19, 2017.
---------------------------------------------------------------------------

    While HTSUS subheadings are provided for convenience and for 
customs purposes, the written description of the subject merchandise 
is dispositive.

Appendix II--List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Critical Circumstances
V. Application of the Countervailing Duty Law to Imports from the 
PRC
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Interest Rate Benchmarks; Discount Rates; Input, Electricity, 
and Land Benchmarks
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether there is a Legal Basis for Investigating 
``Other'' and/or ``Discovered Subsidies
    Comment 2: Whether to Find Non-Use for the Export Buyer's Credit 
Program
    Comment 3: Whether the Department was Able to Verify Non-Use 
with Exporters for the Export Buyer's Credit Program
    Comment 4: Whether Information Provided by the Respondents is 
Sufficient for the Export Buyer's Credit Program
    Comment 5: Whether to Find the Export Buyer's Credit Program 
Countervailable as AFA
    Comment 6: Identification of an AFA Rate for the Export Buyer's 
Credit Program
    Comment 7: Whether to Adjust the Ocean Freight and Import Duties 
Included in the Benchmarks for the Input for LTAR Calculations
    Comment 8: Whether the Ocean Freight Data includes 
``Aberrational'' Prices
    Comment 9: Whether to Use Carbon Black World Market Prices 
Reported in US Dollars per MT
    Comment 10: Whether to Include Brokerage and Handling Costs in 
the Benchmarks for Carbon Black and Nylon Cord
    Comment 11: Whether to Average Benchmark Prices
    Comment 12: Whether to Use Actual Import Prices as the Benchmark 
for Measuring the Benefits from the Provision of Synthetic Rubber 
and Butadiene for LTAR
    Comment 13: Whether to Include in the Benefit Calculation 
Purchases of Synthetic Rubber and Butadiene Produced by a Russian 
Company
    Comment 14: Whether to Include in the Benefit Calculation 
Purchases of Inputs from Cross-Owned Affiliates
    Comment 15: Whether to Treat Double Coin as a Parent Company or 
a Producer for the Purposes of its Sales Denominator
    Comment 16: Whether to Adjust Double Coin's Sales Denominator
    Comment 17: Whether to Recognize Double Coin's 2016 Name Change
    Comment 18: Whether to Attribute to Double Coin Subsidies 
Received by Kunlun Engineering
    Comment 19: Whether to Attribute to Double Coin Subsidies 
Received by Tyre Research
    Comment 20: Whether to Adjust Guizhou Tyre's Sales Denominator
    Comment 21: Whether to Include Land Purchases from Affiliates in 
Calculating the Benefits from the Provision of Land for LTARs
    Comment 22: Whether to Conduct the 0.5 Percent Test on the Basis 
of all Land Purchases in 2009
    Comment 23: Whether to Adjust the Benchmarks Used in the 
Measuring the Benefit from the Provision of Land for LTARs
    Comment 24: Whether to Adjustments the Calculations for the 
Provision of Land for LTARs for Guizhou Tyre
    Comment 25: Whether to Include ``Fund'' Amounts in the 
Electricity Price Paid by Guizhou Tyre
    Comment 26: Whether to Adjust the Electricity Benchmark
    Comment 27: Whether the Department Should Have Accepted 
Additional Loan and Grant Information Presented by Guizhou Tyre at 
Verification
    Comment 28: Whether to Apply AFA to Guizhou Tyre Regarding its 
Government Policy Lending Program
    Comment 29: What AFA Rate to Apply to Guizhou Tyre's Government 
Policy Lending Program
    Comment 30: Whether to Apply AFA to Grants First Identified at 
Verification
    Comment 31: Whether to Defer to the First Administrative Review 
the Investigation of Grants Presented by Guizhou Tyre at 
Verification
    Comment 32: Whether to Exclude Mobile Home Tires
    Comment 33: Whether to Limit the Exclusion of Tires Attached to 
Vehicles
XI. Recommendation

[FR Doc. 2017-01862 Filed 1-26-17; 8:45 am]
BILLING CODE 3510-DS-P



                                                  8606                           Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices

                                                  accordance with 19 CFR 351.205(e),                      DEPARTMENT OF COMMERCE                                 ACCESS is available to registered users
                                                  section 703(c)(1) of the Act permits the                                                                       at http://access.trade.gov, and is
                                                  Department to postpone the preliminary                  International Trade Administration                     available to all parties in the Central
                                                  determination until no later than 130                   [C–570–041]                                            Records Unit, Room B8024 of the main
                                                  days after the date on which the                                                                               Department of Commerce building. In
                                                  Department initiated the investigation                  Truck and Bus Tires From the People’s                  addition, a complete version of the
                                                  if, among other reasons, Petitioners 3                  Republic of China: Final Affirmative                   Issues and Decision Memorandum can
                                                  make a timely request for a                             Countervailing Duty Determination,                     be accessed directly at http://
                                                  postponement, or the Department                         Final Affirmative Critical                             enforcement.trade.gov/frn/. The signed
                                                  concludes that the parties concerned are                Circumstances Determination, in Part                   Issues and Decision Memorandum and
                                                  cooperating and determines that the                                                                            the electronic version are identical in
                                                                                                          AGENCY:   Enforcement and Compliance,                  content.
                                                  investigation is extraordinarily                        International Trade Administration,
                                                  complicated. Under 19 CFR 351.205(e),                   Department of Commerce.                                Scope of the Investigation
                                                  petitioners must submit a request for                   SUMMARY: The Department of Commerce                       The products covered by this
                                                  postponement 25 days or more before                     (the Department) determines that                       investigation are truck and bus tires
                                                  the scheduled date of the preliminary                   countervailable subsidies are being                    from the PRC. For a full description of
                                                  determination and must state the reason                 provided to producers and exporters of                 the scope of the investigation, see
                                                  for the request. The Department will                    truck and bus tires from the People’s                  Appendix I.
                                                  grant the request unless it finds                       Republic of China (PRC). For
                                                  compelling reasons to deny the request.4                information on the estimated subsidy                   Scope Comments
                                                     In the instant investigation,                        rates, see the ‘‘Final Determination’’                    Since the Preliminary Determination,
                                                  Petitioners made a timely request, on                   section of this notice. The period of                  the Department has received comments
                                                                                                          investigation is January 1, 2015, through              on the scope of this investigation from
                                                  January 17, 2017, that we postpone the
                                                                                                          December 31, 2015.                                     the parties in this investigation. See
                                                  preliminary CVD determination.5 In
                                                                                                          DATES: Effective January 27, 2017.                     Issues and Decision Memorandum for
                                                  accordance with 19 CFR 351.205(e),                                                                             further details. The scope in Appendix
                                                  Petitioner has stated the reason for                    FOR FURTHER INFORMATION CONTACT:
                                                                                                          Jennifer Shore or Mark Kennedy, AD/                    I reflects the final scope language.
                                                  requesting a postponement of the
                                                  preliminary determination, and the                      CVD Operations, Office I, Enforcement                  Analysis of Subsidy Programs and
                                                                                                          and Compliance, International Trade                    Comments Received
                                                  Department finds no compelling reason
                                                                                                          Administration, U.S. Department of
                                                  to deny the request. Therefore, pursuant                                                                          The subsidy programs under
                                                                                                          Commerce, 1401 Constitution Avenue
                                                  to section 703(c)(1)(A) of the Act, we are                                                                     investigation and the issues raised in
                                                                                                          NW., Washington, DC 20230; telephone:
                                                  extending the due date for the                          (202) 482–2778 or (202) 482–7883,                      the case and rebuttal briefs by parties in
                                                  preliminary determination to no later                   respectively.                                          this investigation are discussed in the
                                                  than 130 days after the date on which                                                                          Issues and Decision Memorandum. A
                                                  this investigation was initiated, i.e., to              Background                                             list of the issues raised by parties, and
                                                  April 17, 2017. Pursuant to section                        The Department published the                        to which we responded in the Issues
                                                  705(a)(1) of the Act and 19 CFR                         Preliminary Determination on July 5,                   and Decision Memorandum, is attached
                                                  351.210(b)(1), the deadline for the final               2016.1 A summary of the events that                    to this notice at Appendix II.
                                                  determination will continue to be 75                    occurred since the Department                          Use of Adverse Facts Available
                                                  days after the date of the preliminary                  published the Preliminary
                                                                                                          Determination, as well as a full                          In making this final determination,
                                                  determination.
                                                                                                          discussion of the issues raised by parties             the Department relied, in part, on facts
                                                     This notice is issued and published                                                                         available and, because the Government
                                                                                                          for this final determination, may be
                                                  pursuant to section 703(c)(2) of the Act                                                                       of China and a respondent company did
                                                                                                          found in the Issues and Decision
                                                  and 19 CFR 351.205(f)(1).                                                                                      not act to the best of their abilities in
                                                                                                          Memorandum.2 The Issues and Decision
                                                    Dated: January 18, 2017.                              Memorandum is a public document and                    responding to the Department’s requests
                                                                                                          is on file electronically via Enforcement              for information, we drew an adverse
                                                  Paul Piquado,
                                                                                                          and Compliance’s Antidumping and                       inference where appropriate in selecting
                                                  Assistant Secretary for Enforcement and                                                                        from among the facts otherwise
                                                  Compliance.                                             Countervailing Duty Centralized
                                                                                                          Electronic Service System (ACCESS).                    available, pursuant to section 776(a) and
                                                  [FR Doc. 2017–01860 Filed 1–26–17; 8:45 am]                                                                    (b) of the Tariff Act of 1930, as
                                                  BILLING CODE 3510–DS–P                                     1 See Truck and Bus Tires From the People’s         amended, (the Act). For further
                                                                                                          Republic of China: Preliminary Affirmative             information, see the section ‘‘Use of
                                                                                                          Countervailing Duty Determination, Preliminary         Facts Otherwise Available and Adverse
                                                                                                          Affirmative Critical Circumstances Determination,      Inferences’’ in the accompanying Issues
                                                                                                          in Part, and Alignment of Final Determination With
                                                                                                          Final Antidumping Determination, 81 FR 43577           and Decision Memorandum.
                                                                                                          (July 5, 2016) (Preliminary Determination) and
                                                                                                          accompanying Preliminary Decision Memorandum.
                                                                                                                                                                 Changes Since the Preliminary
                                                    3 In this investigation, Petitioners are the             2 See Memorandum from Gary Taverman,                Determination
                                                  Coalition for Fair Trade in Hardwood Plywood and        Associate Deputy Assistant Secretary for                 Based on our analysis of information
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                  its individual members: Columbia Forest Products;       Antidumping and Countervailing Duty Operations,
                                                                                                          to Ronald K. Lorentzen, Acting Assistant Secretary
                                                                                                                                                                 requested and received from the GOC
                                                  Commonwealth Plywood Co., Ltd.; Murphy
                                                  Plywood; Roseburg Forest Products Co.; States           for Enforcement and Compliance, ‘‘Issues and           and the company respondents since the
                                                  Industries LLC; and Timber Products Company.            Decision Memorandum for the Final Determination        Preliminary Determination, the results
                                                     4 See 19 CFR 351.205(e).
                                                                                                          in the Countervailing Duty Investigation of Truck      of verification, and the comments
                                                                                                          and Bus Tires from the People’s Republic of China,’’
                                                     5 See Petitioners’ letter of January 17, 2017,
                                                                                                          dated concurrently with this determination (Issues
                                                                                                                                                                 received from parties, we have made
                                                  requesting postponement of the preliminary              and Decision Memorandum) and hereby adopted by         certain changes to the respondents’
                                                  determination.                                          this notice.                                           subsidy rate calculations. For discussion


                                             VerDate Sep<11>2014   13:58 Jan 26, 2017   Jkt 241001   PO 00000   Frm 00008   Fmt 4703   Sfmt 4703   E:\FR\FM\27JAN1.SGM   27JAN1


                                                                                             Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices                                                                                               8607

                                                  of these changes, see the Issues and                                        the PRC for GTC and GTCIE. In                                                ‘‘all-others’’ rate, which is normally
                                                  Decision Memorandum.                                                        addition, for purposes of this final                                         calculated by weighting the subsidy
                                                                                                                              determination, we find that critical                                         rates of the mandatory respondents by
                                                  Final Determination of Critical
                                                                                                                              circumstances exist with respect to                                          those companies’ exports of the subject
                                                  Circumstances, in Part
                                                                                                                              imports of truck and bus tires from the                                      merchandise to the United States. Under
                                                     In the Preliminary Determination, the                                    PRC for all other companies. A                                               section 705(c)(5)(A)(i) of the Act, the all-
                                                  Department found that critical                                              discussion of our determination can be                                       others rate should exclude zero and de
                                                  circumstances exist with respect to                                         found in the Issues and Decision                                             minimis rates or any rates based entirely
                                                  truck and bus tires from the PRC                                            Memorandum.
                                                  produced and/or exported by Guizhou                                                                                                                      on facts otherwise available pursuant to
                                                  Tyre Co., Ltd. (GTC) and its cross-                                         Final Determination                                                          section 776 of the Act. Neither of the
                                                  owned trading company, Guizhou Tyre                                           We determine that countervailable                                          mandatory respondents’ rates in this
                                                  Import and Export Co., Ltd. (GTCIE), but                                    subsidies are being provided with                                            final determination was zero or de
                                                  did not exist for Double Coin or all other                                  respect to the manufacture, production,                                      minimis or based entirely on facts
                                                  companies. Upon further analysis of the                                     or exportation of the subject                                                otherwise available. In order to ensure
                                                  data following the Preliminary                                              merchandise. In accordance with                                              that business proprietary information is
                                                  Determination, under section 705(a)(2)                                      section 705(c)(1)(B)(i)(I) of the Act, we                                    not disclosed, we have calculated the
                                                  of the Act, we continue to find that                                        calculated a CVD rate for each                                               all-others rate as a simple average of the
                                                  critical circumstances do not exist with                                    individually-investigated producer/                                          countervailable subsidy rates found for
                                                  respect to imports of truck and bus tires                                   exporter of the subject merchandise. In                                      the two mandatory respondents.3
                                                  from the PRC for Double Coin and that                                       accordance with section 705(c)(5)(A)(i)                                         We determine the countervailable
                                                  critical circumstances exist with respect                                   of the Act, for companies not
                                                                                                                                                                                                           subsidy rates to be:
                                                  to imports of truck and bus tires from                                      individually examined, we apply an

                                                                                                                                                                                                                                                             Subsidy Rate
                                                                                                                                              Company                                                                                                          (percent)

                                                  Shanghai Huayi Group Corporation Limited; Double Coin Holdings Ltd.; Double Coin Group (Jiangsu) Tyre Co., Ltd.; Double
                                                     Coin Group (Chongqing) Tyre Co., Ltd.; Double Coin Group Shanghai Donghai Tyre Co. Ltd.; Double Coin Group (Xinjiang)
                                                     Kunlun Tyre Co., Ltd ........................................................................................................................................................................                  38.61
                                                  Guizhou Tyre Import and Export Co., Ltd.; Guizhou Tyre Co., Ltd ....................................................................................................                                              65.46
                                                  All-Others .............................................................................................................................................................................................          52.04



                                                  Suspension of Liquidation                                                   section 703(d) of the Act, we instructed                                     suspension of liquidation will be
                                                                                                                              CBP to discontinue the suspension of                                         refunded or canceled.
                                                    As a result of our Preliminary                                            liquidation for CVD purposes for subject
                                                  Determination, and pursuant to sections                                                                                                                  ITC Notification
                                                                                                                              merchandise entered, or withdrawn
                                                  703(d)(1)(B) and (2) of the Act, we                                         from warehouse, on or after November                                           In accordance with section 705(d) of
                                                  instructed U.S. Customs and Border                                          2, 2016, but to continue the suspension                                      the Act, we will notify the ITC of our
                                                  Protection (CBP) to suspend liquidation                                     of all entries from April 6, 2016, or July                                   determination. In addition, we are
                                                  of entries of truck and bus tires from the                                  5, 2016 (for GTC and GTCIE, or Double                                        making available to the ITC all non-
                                                  PRC exported by Double Coin and all                                         Coin and all other companies,                                                privileged and non-proprietary
                                                  other companies that were entered, or                                       respectively) through November 1, 2016,                                      information relating to this
                                                  withdrawn from warehouse, for                                               as appropriate.                                                              investigation. We will allow the ITC
                                                  consumption on or after July 5, 2016,                                                                                                                    access to all privileged and business
                                                  the date of the publication of the                                             If the U.S. International Trade                                           proprietary information in our files,
                                                  Preliminary Determination in the                                            Commission (ITC) issues a final                                              provided the ITC confirms that it will
                                                  Federal Register. With respect to entries                                   affirmative injury determination, we                                         not disclose such information, either
                                                  of subject merchandise exported by GTC                                      will issue a CVD order and will reinstate                                    publicly or under an administrative
                                                  and GTCIE, as a result of our                                               the suspension of liquidation under                                          protective order (APO), without the
                                                  preliminary affirmative critical                                            section 706(a) of the Act and will                                           written consent of the Assistant
                                                  circumstances determination, we                                             require a cash deposit of estimated                                          Secretary for Enforcement and
                                                  instructed CBP to suspend liquidation                                       CVDs for such entries of subject                                             Compliance.
                                                  of entries that were entered, or                                            merchandise in the amounts indicated
                                                  withdrawn from warehouse, for                                               above. On the basis of our final                                             Return or Destruction of Proprietary
                                                  consumption on or after April 6, 2016,                                      affirmative critical circumstances                                           Information
                                                  which is 90 days before the date of the                                     determination, we will instruct CBP to                                         In the event that the ITC issues a final
                                                  publication of the Preliminary                                              suspend liquidation on entries of truck                                      negative injury determination, this
                                                  Determination in the Federal Register.                                      and bus tires from China for all other                                       notice will serve as the only reminder
                                                  At that time, we also instructed CBP to                                     companies effective April 6, 2016. If the                                    to parties subject to an APO of their
                                                  collect cash deposits of estimated                                          ITC determines that material injury, or                                      responsibility concerning the
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                  countervailing duties at the rates                                          threat of material injury, does not exist,                                   destruction of proprietary information
                                                  determined in the Preliminary                                               this proceeding will be terminated and                                       disclosed under APO in accordance
                                                  Determination for such entries of                                           all estimated duties deposited or                                            with 19 CFR 351.305(a)(3). Timely
                                                  merchandise. In accordance with                                             securities posted as a result of the                                         written notification of the return/


                                                     3 See Memorandum to the File, ‘‘Calculation of

                                                  the All-Others Rate’’ dated concurrently with this
                                                  final determination.

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                                                  8608                           Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices

                                                  destruction of APO materials or                         that the construction code included in the                  Benchmarks for Carbon Black and Nylon
                                                  conversion to judicial protective order is              size designation molded into the tire’s                     Cord
                                                  hereby requested. Failure to comply                     sidewall is not the letter ‘‘R.’’                        Comment 11: Whether to Average
                                                                                                            The subject merchandise is currently                      Benchmark Prices
                                                  with the regulations and terms of an                    classifiable under Harmonized Tariff
                                                  APO is a violation that is subject to                                                                            Comment 12: Whether to Use Actual
                                                                                                          Schedule of the United States (HTSUS)                       Import Prices as the Benchmark for
                                                  sanction.                                               subheadings: 4011.20.1015 and                               Measuring the Benefits from the
                                                    This determination is issued and                      4011.20.5020. Tires meeting the scope                       Provision of Synthetic Rubber and
                                                  published pursuant to sections 705(d)                   description may also enter under the
                                                                                                                                                                      Butadiene for LTAR
                                                  and 777(i) of the Act and 19 CFR                        following HTSUS subheadings:
                                                                                                                                                                   Comment 13: Whether to Include in the
                                                  351.210(c).                                             4011.69.0020, 4011.69.0090, 4011.70.00,
                                                                                                          4011.90.80, 4011.99.4520, 4011.99.4590,                     Benefit Calculation Purchases of
                                                    Dated: January 19, 2017.                              4011.99.8520, 4011.99.8590, 8708.70.4530,                   Synthetic Rubber and Butadiene
                                                  Ronald K. Lorentzen,                                    8708.70.6030, 8708.70.6060, and                             Produced by a Russian Company
                                                  Acting Assistant Secretary for Enforcement              8716.90.5059.4                                           Comment 14: Whether to Include in the
                                                  and Compliance.                                           While HTSUS subheadings are provided                      Benefit Calculation Purchases of Inputs
                                                                                                          for convenience and for customs purposes,                   from Cross-Owned Affiliates
                                                  Appendix I—Scope of the Investigation                   the written description of the subject                   Comment 15: Whether to Treat Double
                                                                                                          merchandise is dispositive.                                 Coin as a Parent Company or a Producer
                                                     The scope of the investigation covers truck
                                                                                                                                                                      for the Purposes of its Sales Denominator
                                                  and bus tires. Truck and bus tires are new              Appendix II—List of Topics Discussed
                                                  pneumatic tires, of rubber, with a truck or                                                                      Comment 16: Whether to Adjust Double
                                                                                                          in the Final Decision Memorandum                            Coin’s Sales Denominator
                                                  bus size designation. Truck and bus tires
                                                  covered by this investigation may be tube-              I. Summary                                               Comment 17: Whether to Recognize Double
                                                  type, tubeless, radial, or non-radial.                  II. Background                                              Coin’s 2016 Name Change
                                                     Subject tires have, at the time of                   III. Scope of the Investigation                          Comment 18: Whether to Attribute to
                                                  importation, the symbol ‘‘DOT’’ on the                  IV. Critical Circumstances                                  Double Coin Subsidies Received by
                                                  sidewall, certifying that the tire conforms to          V. Application of the Countervailing Duty                   Kunlun Engineering
                                                  applicable motor vehicle safety standards.                    Law to Imports from the PRC                        Comment 19: Whether to Attribute to
                                                  Subject tires may also have one of the                  VI. Use of Facts Otherwise Available and                    Double Coin Subsidies Received by Tyre
                                                  following suffixes in their tire size                         Adverse Inferences                                    Research
                                                  designation, which also appear on the                   VII. Subsidies Valuation                                 Comment 20: Whether to Adjust Guizhou
                                                  sidewall of the tire:                                   VIII. Interest Rate Benchmarks; Discount                    Tyre’s Sales Denominator
                                                     TR—Identifies tires for service on trucks or               Rates; Input, Electricity, and Land                Comment 21: Whether to Include Land
                                                  buses to differentiate them from similarly                    Benchmarks                                            Purchases from Affiliates in Calculating
                                                  sized passenger car and light truck tires; and          IX. Analysis of Programs
                                                                                                                                                                      the Benefits from the Provision of Land
                                                     HC—Identifies a 17.5 inch rim diameter               X. Analysis of Comments
                                                                                                             Comment 1: Whether there is a Legal Basis                for LTARs
                                                  code for use on low platform trailers.                                                                           Comment 22: Whether to Conduct the 0.5
                                                     All tires with a ‘‘TR’’ or ‘‘HC’’ suffix in                for Investigating ‘‘Other’’ and/or
                                                                                                                ‘‘Discovered Subsidies                                Percent Test on the Basis of all Land
                                                  their size designations are covered by this                                                                         Purchases in 2009
                                                  investigation regardless of their intended use.            Comment 2: Whether to Find Non-Use for
                                                                                                                the Export Buyer’s Credit Program                  Comment 23: Whether to Adjust the
                                                     In addition, all tires that lack one of the
                                                                                                             Comment 3: Whether the Department was                    Benchmarks Used in the Measuring the
                                                  above suffix markings are included in the
                                                                                                                Able to Verify Non-Use with Exporters                 Benefit from the Provision of Land for
                                                  scope, regardless of their intended use, as
                                                  long as the tire is of a size that is among the               for the Export Buyer’s Credit Program                 LTARs
                                                  numerical size designations listed in the                  Comment 4: Whether Information Provided               Comment 24: Whether to Adjustments the
                                                  ‘‘Truck-Bus’’ section of the Tire and Rim                     by the Respondents is Sufficient for the              Calculations for the Provision of Land for
                                                  Association Year Book, as updated annually,                   Export Buyer’s Credit Program                         LTARs for Guizhou Tyre
                                                  unless the tire falls within one of the specific           Comment 5: Whether to Find the Export                 Comment 25: Whether to Include ‘‘Fund’’
                                                                                                                Buyer’s Credit Program Countervailable                Amounts in the Electricity Price Paid by
                                                  exclusions set out below.
                                                                                                                as AFA                                                Guizhou Tyre
                                                     Truck and bus tires, whether or not
                                                                                                             Comment 6: Identification of an AFA Rate              Comment 26: Whether to Adjust the
                                                  mounted on wheels or rims, are included in
                                                                                                                for the Export Buyer’s Credit Program                 Electricity Benchmark
                                                  the scope. However, if a subject tire is
                                                                                                             Comment 7: Whether to Adjust the Ocean
                                                  imported mounted on a wheel or rim, only                                                                         Comment 27: Whether the Department
                                                                                                                Freight and Import Duties Included in
                                                  the tire is covered by the scope. Subject                                                                           Should Have Accepted Additional Loan
                                                                                                                the Benchmarks for the Input for LTAR
                                                  merchandise includes truck and bus tires                      Calculations                                          and Grant Information Presented by
                                                  produced in the subject country whether                    Comment 8: Whether the Ocean Freight                     Guizhou Tyre at Verification
                                                  mounted on wheels or rims in the subject                      Data includes ‘‘Aberrational’’ Prices              Comment 28: Whether to Apply AFA to
                                                  country or in a third country. Truck and bus               Comment 9: Whether to Use Carbon Black                   Guizhou Tyre Regarding its Government
                                                  tires are covered whether or not they are                     World Market Prices Reported in US                    Policy Lending Program
                                                  accompanied by other parts, e.g., a wheel,                    Dollars per MT                                     Comment 29: What AFA Rate to Apply to
                                                  rim, axle parts, bolts, nuts, etc. Truck and bus           Comment 10: Whether to Include                           Guizhou Tyre’s Government Policy
                                                  tires that enter attached to a vehicle are not                Brokerage and Handling Costs in the                   Lending Program
                                                  covered by the scope.                                                                                            Comment 30: Whether to Apply AFA to
                                                     Specifically excluded from the scope of                 4 On August 26, 2016, the Department included            Grants First Identified at Verification
                                                  this investigation are the following types of           HTSUS subheadings 4011.69.0020, 4011.69.0090,            Comment 31: Whether to Defer to the First
                                                  tires: (1) Pneumatic tires, of rubber, that are         and 8716.90.5059 to the case reference files,               Administrative Review the Investigation
                                                  not new, including recycled and retreaded               pursuant to requests by CBP and the petitioner. See         of Grants Presented by Guizhou Tyre at
                                                  tires; (2) non-pneumatic tires, such as solid           Memorandum to the File entitled, ‘‘Requests from
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                                                                                      Verification
                                                  rubber tires; and (3) tires that exhibit each of        Customs and Border Protection and the Petitioner
                                                                                                          to Update the ACE Case Reference File,’’ dated
                                                                                                                                                                   Comment 32: Whether to Exclude Mobile
                                                  the following physical characteristics: (a) The                                                                     Home Tires
                                                  designation ‘‘MH’’ is molded into the tire’s            August 26, 2016. On January 19, 2017, the
                                                                                                          Department included HTSUS subheadings                    Comment 33: Whether to Limit the
                                                  sidewall as part of the size designation; (b)                                                                       Exclusion of Tires Attached to Vehicles
                                                                                                          4011.70.00 and 4011.90.80 to the case reference
                                                  the tire incorporates a warning, prominently            files, pursuant to requests by CBP. See                XI. Recommendation
                                                  molded on the sidewall, that the tire is for            Memorandum to the File entitled, ‘‘Requests from
                                                  ‘‘Mobile Home Use Only;’’ and (c) the tire is           Customs and Border Protection to Update the ACE        [FR Doc. 2017–01862 Filed 1–26–17; 8:45 am]
                                                  of bias construction as evidenced by the fact           Case Reference File,’’ dated January 19, 2017.         BILLING CODE 3510–DS–P




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Document Created: 2017-01-27 00:11:22
Document Modified: 2017-01-27 00:11:22
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective January 27, 2017.
ContactJennifer Shore or Mark Kennedy, 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) 482-2778 or (202) 482-7883, respectively.
FR Citation82 FR 8606 

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