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February 05, 2016 01:00 AM

Commerce initiates probe of China, India, Sri Lanka OTR tires

Miles Moore
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    WASHINGTON (Feb. 5, 2016) — The U.S. Department of Commerce has initiated an antidumping and countervailing duty investigation of pneumatic off-the-road (OTR) tires from China and India, and a countervailing duty investigation of OTR tires from Sri Lanka.

    Titan Tire Corp. and the United Steelworkers (USW) union filed a petition with the International Trade Commission (ITC) Jan. 8. In antidumping and countervailing duty investigations, it is the role of Commerce to determine the rate of dumping and subsidy margins, and the ITC's to determine whether the domestic injury is being materially injured because of dumping and subsidies.

    The tires covered under the Commerce investigation are both tubeless and tube-type, radial and bias, original equipment and replacement, Commerce said in its Feb. 4 fact sheet on the investigation.

    Commerce noted in the fact sheet that the value of the imports in the targeted categories in 2014 was less than $250 million — $6.2 million from China; $167.3 million from India; and $76.8 million from Sri Lanka. This was down measurably from $789 million in 2013 and $851 million in 2012, the agency said,

    Excluded from the investigation are unmounted Chinese OTR tires, which are covered under a previous antidumping and countervailing duty order from 2008. Titan and the USW were also the petitioners in this case, filing in 2007.

    Also excluded are all non-OTR tires; recycled, retreaded and used tires; solid rubber and other non-pneumatic tires; aircraft tires; and turf, lawn and garden, and golf tires. Mining and construction tires with rim diameters of 39 inches or more are likewise excluded, Commerce said.

    The alleged dumping margins in the case are 11.2 to 77.69 percent for Chinese tires, 10.77 to 76.45 percent for Indian tires, Commerce said.

    Estimated subsidies for all three countries were above de minimis, which Commerce defines as less than 1 percent for developed countries, less than 2 percent for developing countries.

    The ITC held a preliminary hearing on the case Jan. 29, where importers squared off with representatives of Titan and the USW. 

    The agency is scheduled to make a preliminary determination Feb. 19 and transmit its decision to Commerce Feb. 22.

    If the ITC's determination is affirmative, Commerce will make a preliminary determination on countervailing duties on or about April 8, and on antidumping duties on or about June 22. If the ITC makes a negative determination, the investigation will be terminated.

    __________________________________

    To reach this reporter: [email protected]

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