WASHINGTON — The U.S. Department of Commerce has agreed to review elevated import duties imposed on passenger and light truck tires from South Korea, Taiwan and Thailand in June 2021, but the affected parties might not get a ruling until July 2023.
Commerce said in its notification to the affected parties — published in the Federal Register on Sept. 7 — that it intends to issue a determination in the matter no later than July 31, 2023.
Commerce's notice comes after a dozen tire companies from the affected nations petitioned the agency to review the elevated antidumping duties imposed a year ago.
The companies are exercising their right to request an administrative review of import duties each year during the anniversary month of the publication of an antidumping or countervailing duty order.
Interested parties are invited to submit information relevant to their cases to the Commerce Department. Submissions should focus on five categories of factual information: evidence submitted in response to questionnaires; evidence submitted in support of allegations; publicly available information to value factors or to measure the adequacy of remuneration; evidence placed on the record by Commerce; and evidence other than factual information covered by the four other criteria.
The initial decision cemented elevated import duties on nearly $4 billion worth of imports from the affected nations, as determined earlier by the Commerce Department. That ruling was based on its belief that the tires "are being, or are likely to be, sold in the U.S. at less than fair value."
The investigation — done in response to a petition from the United Steelworkers (USW) in May 2020 — covered a period from April 1, 2019, through March 31, 2020.
The final antidumping duty rates issued then:
- In South Korea — Hankook Tire & Technology Co. Ltd., 27.05%; Nexen Tire Corp., 14.72%; "all others" 21.74%.
- In Taiwan — Cheng Shin Rubber Industry Co. Ltd./Maxxis International, 20.04%; Nankang Rubber Industry Co. Ltd., 101.84%; "all others," 84.75%.
- In Thailand — Sumitomo Rubber (Thailand) Co. Ltd., 14.62%; LLIT (Thailand) Co. Ltd. (Linglong), 21.09%; "all others," 17.08%.
In addition, Sailun Vietnam and Kumho Tire Vietnam were assessed countervailing duties of 6.23% and 7.89%, respectively. All other companies were assessed a countervailing duty of 6.46%.
Since the imposition of these duties, imports of passenger and light truck tires from South Korea and Thailand dipped initially, but tire makers in Taiwan were affected most drastically, with passenger tire imports plunging 79% in the first half of 2022 to 1.41 million units from 2.52 million in the same period in 2021.
Among the companies hurt the most was Federal Corp., which closed one factory in Taiwan and is now is a business partnership with Nankang.
The companies impacted by this decision are:
- Cheng Shin and Nankang from Taiwan;
- Hankook Tire & Technology Co. Ltd., Kumho Tire Co. Inc. and Nexen Tire Corp. from South Korea; and
- Deestone Corp. Ltd., General Rubber (Thailand) Co. Ltd., LLIT (Thailand) Co. Ltd., Maxxis International (Thailand) Co. Ltd., Otani Radial Co. Ltd., Prinx Chengshan Tire (Thailand) Co. Ltd., Sentury Tire (Thailand) Co., Ltd., and Sumitomo Rubber (Thailand) Co. Ltd. from Thailand.
In addition, American Omni Trading Co. L.L.C. submitted a request for review, acting on behalf of Deestone, LLIT (Thailand), General Rubber, Sentury Tire and Zhongce Tire (Thailand) Co. Ltd.
As part of the administrative review, Commerce said it will — if requested by a domestic interested party within 30 days of the date of publication of the notice of initiation of the review — determine whether AD duties have been absorbed by an exporter or producer subject to the review if the subject merchandise is sold in the U.S. through an importer that is affiliated with such exporter or producer.
