New AD/CV Duties Possible on Tires from Four Countries
A petition filed May 13 alleges that passenger vehicle and light truck tires from Korea, Taiwan, Thailand, and Vietnam are being sold at less than fair value in the U.S. market and that such tires from Vietnam are benefiting from countervailable subsidies. The alleged average dumping margins are 42.95 to 195.20 percent for Korea, 105 to 147 percent for Taiwan, 106.4 to 217.5 percent for Thailand, and 14.73 to 33.06 for Vietnam.
The products covered by this petition are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. They may be tube-type, tubeless, radial, or non-radial and may be intended for sale to original equipment manufacturers or the replacement market. The petition covers all tires of a size that fits passenger cars or light trucks unless they fall within one of the exclusions.
Subject tires are currently classified under HTSUS subheadings 4011.10.1010, 4011.10.1020, 4011.10.1030, 4011.10.1040, 4011.10.1050, 4011.10.1060, 4011.10.1070, 4011.10.5000, 4011.20.1005, and 4011.20.5010. Tires meeting the scope description may also enter under HTSUS subheadings 4011.90.1010, 4011.90.1050, 4011.90.2010, 4011.90.2050, 4011.90.8010, 4011.90.8050, 8708.70.4530, 8708.70.4546, 8708.70.4548, 8708.70.4580, 8708.70.6030, 8708.70.6045, and 8708.70.6060.
Specifically excluded from the scope of the petition are the following.
- racing car tires
- rubber pneumatic tires that are not new, including recycled and retreaded tires
- non-pneumatic tires, such as solid rubber tires
- tires designed and marketed exclusively as temporary use spare tires for passenger vehicles that exhibit specified physical characteristics
- tires designed and marketed exclusively for specialty tire use that exhibit specified conditions
- tires designed and marketed exclusively for off-road use that exhibit specified physical characteristics
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 this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact Sandler, Travis & Rosenberg as soon as possible.