Commerce makes final duties rulings on Chinese tires

By Miles Moore, Senior Washington reporter

WASHINGTON (June 12, 2015) — Chinese passenger and light truck tire importers are dumping their products in the U.S. at margins ranging from 14.35 to 87.99 percent, the Commerce Department's International Trade Administration has ruled.

Also, the same importers are obtaining Chinese government subsidies ranging from 20.33 to 100.77 percent, according to the decision issued by Commerce June 12.

The United Steelworkers union filed petitions with the International Trade Commission (ITC) in June 2014, asking for relief against Chinese tire imports under Sections 701 and 731 of the Trade Act.

Earlier, from September 2009 to September 2012, the Obama administration placed high tariffs on Chinese tire imports under Section 421 of the Trade Act. Chinese imports skyrocketed to pre-tariff levels immediately after the tariffs lapsed, the USW said.

Commerce disclosed that Giti Tire Global Trading Pte. Ltd. and Sailun Group Co. Ltd. received final antidumping margins of 29.97 percent and 14.35 percent, respectively, while the "separate rate" companies received a final dumping margin of 25.30 percent. (See accompanying graphic.)

All other producers/exporters in China received a final dumping margin of 87.99 percent, based on adverse facts available.

In the countervailing duties investigation, Commerce calculated a final subsidy rate of 37.20 percent for GITI Tire (Fujian) Co. Ltd., 20.73 percent for Cooper Kunshan Tire Co. Ltd. and 100.77 percent for Shandong Yongsheng Rubber Group Co., Ltd. (Yongsheng). The rate for Yongsheng was based on adverse facts available, because the company failed to respond to the Department's requests for information or otherwise participate in the investigation.

All other producers/exporters in China have been assigned a final subsidy rate of 30.87 percent.

The ITA fact sheet on the duties notes a number of excluded categories, including:  racing tires; temporary use spares; “ST” type specialty tires (trailer tires, predominantly); tires designed and marketed exclusively for off-road use; tires incorporating a warning, molded on the sidewall, that the tire is “Not For Highway Service” or “Not for Highway Use”; pneumatic tires of a size that is not listed in the passenger car section or light truck section of the Tire and Rim Association Yearbook; pneumatic tires that are not new, including recycled and retreaded tires; and non-pneumatic tires, such as solid rubber tires.

The case now goes to the ITC, which is scheduled to make a final decision July 27 on whether Chinese tire imports caused material injury to the U.S. tire industry.

If the ITC makes an affirmative determination, Commerce will issue final antidumping and countervailing duty orders, Commerce said in its press release. If the ITC's determination is negative, the investigation will be terminated, Commerce said.