Stakeholders react to Chinese OTR tire ruling

WASHINGTON D.C. — Representatives of Chinese OTR tire manufacturers and Titan Tire Corp. have diametrically opposing reactions to the elevated antidumping and countervailing duties levied recently by the U.S. Department of Commerce after an administrative review.

Importers/distributors of Chinese OTR tires said they were considering whether to appeal the decision before the U.S. Court of International Trade, while Titan hailed the increased duties as a victory against unfair competition.

Recalculating countervailing duties for OTR tires brought in from China during calendar year 2014, Commerce levied duties ranging from 34.46 to 46.01 percent.

Reviewing antidumping duties for tires imported from China between Sept. 1, 2014 and Aug. 31, 2015, the agency levied duties of 33.08 percent against 10 Chinese tire importers and 105.31 percent for all others. The revised duties are up from the 13.92 percent rate that Commerce issued in mid-2016.

Commerce originally levied antidumping and countervailing duties on certain Chinese OTR tires in 2008 and reconfirmed them in 2014 for five more years.

Jason Rothstein, general manager-North America for Aeolus Tyre Co. Ltd., said his company was “obviously disappointed” by the results of the Commerce review.

“It will result in our customers having less choice for high-quality OTR tires,” Mr. Rothstein said.

“We are currently evaluating our right to appeal the decision with the Court of International Trade in order to protect our distributors and our customers.”

Mark Lammelin, vice president of GTC North America, the U.S. distributor of Guizhou-brand tires, said he could not comment except to say his company was considering an appeal.

Walter Weller, vice president of China Manufacturers Alliance L.L.C., said Commerce did not review CMA for this particular period of time.

Meanwhile, Titan celebrated the results of the administrative reviews in a statement.

“The DOC's issuance of these results updates the level of duties that are imposed on OTR tire imports to counteract the most recent levels of subsidization and dumping identified by the DOC,” Titan said in the release.

“We thank the government agencies involved for their diligence in pursuing these reviews,” said Titan Chairman Maurice “Morrie” Taylor Jr.

“These results confirm that imports of OTR tires from China continue to be subsidized and dumped and harm U.S. producers of OTR tires in the U.S. marketplace,” Mr. Taylor said. “I believe Titan will see a positive impact in our aftermarket business as a result of these determinations.”

Commerce published the preliminary results of the administrative reviews in the Oct. 14, 2106, Federal Register. The agency then received case and rebuttal briefs from Titan International Inc. and the United Steelworkers union, the original petitioners for relief in 2007, and from various Chinese tire producers.

The agency calculated new countervailing duties of 34.46 percent for Guizhou Tyre Co. Ltd., 46.01 percent for Xuzhou Xugong Tyres Co. Ltd., and 40.24 percent for “non-selected “companies (i.e. those companies Commerce didn't select for responses to specific questions regarding trade). It issued its findings in the April 18 Federal Register.

Three days later, Commerce issued its antidumping review. The following companies received antidumping duties of 33.08 percent:

• Qingdao Free Trade Zone Full-World International Trading Co. Ltd.;
• Qingdao Jinhaoyang International Co. Ltd.;
• Qingdao Qihang Tyre Co.;
• Sailun Jinyu Group Co. Ltd.;
• Shiyan Desizheng Industry & Trade Co. Ltd.;
• Trelleborg Wheel Systems (Xingtai) China Co. Ltd.
• Weifang Jintongda Tyre Co. Ltd.;
• Weihai Zhongwei Rubber Co. Ltd.;
• Xuzhou Xugong Tyres Co. Ltd.; and
• Zhongce Rubber Group Co. Ltd.;

Other companies — including Guizhou Tyre Co., Aeolus Tyre Co. Ltd. and Tianjin Leviathan International Trade Co. Ltd. — received the PRC (People's Republic of China)-wide rate of 105.31 percent.

A spokesman for the USW said the union would not release a statement.

The notices pertaining to the countervailing duties and antidumping duties can be found at the Federal Register website.