Off-Road Tires are Subject of New AD/CV Petition
A recent petition alleges that imports of new pneumatic off-the-road tires from China and India are being sold at less than fair value, with alleged dumping margins of 74.68 percent for China and 26.49 percent to 159.51 percent for India. The petition also alleges that imports of such tires from China, India and Sri Lanka benefit from countervailable subsidies.
The products covered by this petition are generally designed, manufactured and offered for sale for use on off-road or off-highway surfaces, including agricultural fields, forests, construction sites, factory and warehouse interiors, airport tarmacs, ports and harbors, mines, quarries, gravel yards and steel mills. Except as discussed below, OTR tires included in the scope of the proceeding range in size (rim diameter) generally from 8 inches to 54 inches. The tires may be either tube-type or tubeless, radial or non-radial, and intended for sale either to original equipment manufacturers or the replacement market.
OTR tires are included in the scope whether or not attached to wheels or rims. However, if a subject tire is imported attached to a wheel or rim, only the tire is covered by the scope. Subject goods include OTR tires produced in the subject countries whether attached to wheels or rims in a subject country or in a third country.
The subject tires are currently classifiable under HTSUS subheadings 4011.20.1025, 4011.20.1035, 4011.20.5030, 4011.20.5050, 4011.61.0000, 4011.62.0000, 4011.63.0000, 4011.69.0050, 4011.92.0000, 4011.93.4000, 4011.93.8000, 4011.94.4000, 4011.94.8000, 8431.49.9038, 8431.49.9090, 8709.90.0020 and 8716.90.1020. Tires meeting the scope description may also enter under HTSUS subheadings 4011.99.4550, 4011.99.8550, 8424.90.9080, 8431.20.0000, 8431.39.0010, 8431.49.1090, 8431.49.9030, 8432.90.0005, 8432.90.0015, 8432.90.0030, 8432.90.0080, 8433.90.5010, 8503.00.9560, 8708.70.0500, 8708.70.2500, 8708.70.4530 and 8716.90.5035.
The following are excluded from the scope.
- products covered by the existing AD and CV duty orders on OTR tires from China
- new pneumatic tires designed, manufactured and offered for sale primarily for on-highway or on-road use, including passenger cars, race cars, station wagons, sport utility vehicles, minivans, mobile homes, motorcycles, bicycles, on-road or on-highway trailers, light trucks, and trucks and buses
- pneumatic tires that are not new, including recycled or retreaded tires and used tires
- non-pneumatic tires, including solid rubber tires
- tires of a kind designed for use on aircraft, all-terrain vehicles, and vehicles for turf, lawn and garden, golf and trailer applications
- radial and bias tires of a kind designed for use in mining and construction vehicles and equipment that have a rim diameter equal to or exceeding 39 inches
The Department of Commerce and the International Trade Commission will next determine whether to launch AD and/or CV duty and injury investigations, respectively, on these tires. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.
For more information contact Kristen Smith at (202) 730-4965 or Mark Ludwikowski at (202) 730-4967.