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New AD/CV Duties Sought On Passenger Vehicle and Light Truck Tires from China

Wednesday, June 04, 2014
Sandler, Travis & Rosenberg Trade Report

A petition filed June 3 alleges that certain passenger vehicle and light truck tires from China are being sold at less than fair value and also benefit from countervailable subsidies. The alleged dumping margins range from 45.25% to 60.15%, and 41 countervailable subsidy programs are alleged.

The items covered by the petition are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. These tires are suitable for use on motor cars, including sedans, station wagons, sport utility vehicles, minivans and vans, and on-the-highway light trucks. They may be tube-type, tubeless, radial or non-radial and may be intended for sale to original equipment manufacturers or the replacement market. 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. Any tire of any size designation listed in the passenger car section or light truck section of the Tire and Rim Association Year Book, as updated annually, is covered, regardless of the tire's intended use.

Subject tires are currently classified under HTSUS subheadings 4011.10.10, 4011.10.50, 4011.20.1005, and 4011.20.5010. To the extent that tires that meet the scope description are imported under basket HTSUS categories such as 4011.99.45 and 4011.99.85, or any other HTSUS categories not listed above, they are within the scope of the petition.

Specifically excluded from the petition are the following types of tires: (1) racing car tires, defined as tires with a “ZR” appearing in the size designation; (2) new pneumatic tires, of rubber, of a size designation not listed in the passenger car section or light truck section of the Tire and Rim Association Yearbook; (3) pneumatic tires, of rubber, that are not new, including recycled and retreaded tires; and (4) non-pneumatic tires, such as solid rubber tires.

The International Trade Administration and the International Trade Commission will next determine whether to launch AD/CV duty and injury investigations, respectively, of the subject 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.

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