Passenger Vehicle and Light Truck Tires From the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigation, 38850-38854 [2020-13957]

Download as PDF 38850 Federal Register / Vol. 85, No. 125 / Monday, June 29, 2020 / Notices The OCTG coupling stock covered by the order may also enter under the following HTSUS item numbers: 7304.39.00.24, 7304.39.00.28, 7304.39.00.32, 7304.39.00.36, 7304.39.00.40, 7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 7304.39.00.76, 7304.39.00.80, 7304.59.60.00, 7304.59.80.15, 7304.59.80.20, 7304.59.80.25, 7304.59.80.30, 7304.59.80.35, 7304.59.80.40, 7304.59.80.45, 7304.59.80.50, 7304.59.80.55, 7304.59.80.60, 7304.59.80.65, 7304.59.80.70, and 7304.59.80.80. Although HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this order is dispositive. Analysis of Comments Received All issues raised in this review are addressed in the Issues and Decision Memorandum 6 and listed in the appendix to this notice, including the likelihood of continuation or recurrence of a countervailable subsidy and the net countervailable subsidy likely to prevail if the order were revoked. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Final Results of Review Pursuant to sections 751(c)(1) and 752(b)(1) and (3) of the Act, we determine that revocation of the CVD Order would be likely to lead to continuation or recurrence of countervailable subsidies at the following net countervailable subsidy rates: Net subsidy rate (percent) Exporter/manufacturer Jiangsu Changbao Steel Tube Co. and Jiangsu Changbao Precision Steel Tube Co., Ltd .............................................................. Tianjin Pipe (Group) Co., Tianjin Pipe Iron Manufacturing Co., Ltd., Tianguan Yuantong Pipe Product Co., Ltd., Tianjin Pipe International Economic and Trading Co., Ltd., and TPCO Charging Development Co., Ltd ......................................................... Wuxi Seamless Pipe Co, Ltd., Jiangsu Fanli Steel Pipe Co, Ltd., and Tuoketuo County Mengfeng Special Steel Co., Ltd ............ Zhejiang Jianli Enterprise Co., Ltd., Zhejiang Jianli Steel Tube Co., Ltd., Zhuji Jiansheng Machinery Co., Ltd., and Zhejiang Jianli Industry Group Co., Ltd .......................................................................................................................................................... All Others ............................................................................................................................................................................................. Administrative Protective Order (APO) This notice also serves as the only reminder to parties subject to administrative protective order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely notification of the return or destruction of APO materials or conversion to judicial protective orders is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation. II. History of the Order III. Background IV. Scope of the Order V. Discussion of the Issues 1. Likelihood of Continuation or Recurrence of a Countervailable Subsidy 2. Net Countervailable Subsidy Likely to Prevail 3. Nature of the Subsidies VI. Final Results of Review VII. Recommendation Dated: June 23, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE jbell on DSKJLSW7X2PROD with NOTICES 6 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Results of the Second Expedited Five-Year Sunset Review of the Countervailing Duty Order on certain Oil Country Tubular Goods from the People’s Republic of 20:25 Jun 26, 2020 Jkt 250001 [C–552–829] Passenger Vehicle and Light Truck Tires From the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable June 22, 2020. List of Topics Discussed in the Issues and Decision Memorandum I. Summary VerDate Sep<11>2014 International Trade Administration AGENCY: Appendix 20.90 25.36 26.19 23.82 FOR FURTHER INFORMATION CONTACT: Thomas Schauer; AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–0410. SUPPLEMENTARY INFORMATION: The Petition [FR Doc. 2020–13947 Filed 6–26–20; 8:45 am] Notification to Interested Parties We are issuing and publishing these results and notice in accordance with sections 751(c), 752(b), and 777(i)(1) of the Act, and 19 CFR 351.218. 22.87 China,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 1 See Petitioner’s Letter, ‘‘Passenger vehicle and light truck tires from the Republic of Korea, Taiwan, PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 On May 13, 2020, the Department of Commerce (Commerce) received a countervailing duty (CVD) petition concerning imports of passenger vehicle and light truck tires (passenger tires) from the Socialist Republic of Vietnam (Vietnam) filed in proper form on behalf of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL–CIO, CLC (the petitioner).1 The petition was accompanied by antidumping duty (AD) petitions concerning imports of passenger tires from Vietnam, Republic of Korea, Taiwan, and Thailand.2 Thailand, and the Socialist Republic of Vietnam— Petition for the Imposition of Antidumping and Countervailing Duties,’’ dated May 13, 2020 (the Petition). 2 Id. E:\FR\FM\29JNN1.SGM 29JNN1 Federal Register / Vol. 85, No. 125 / Monday, June 29, 2020 / Notices Between May 18 and June 8, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition.3 The petitioner filed responses to these requests on May 20 and June 10, 2020.4 On May 21, 2020, Commerce extended the initiation deadline by 20 days to poll the domestic industry in accordance with section 702(c)(4)(D) of the Act, because it was not ‘‘clear from the Petitions whether the industry support criteria have been met . . . .’’ 5 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Government of Vietnam (GOV) is providing countervailable subsidies within the meaning of sections 701 and 771(5) of the Act, and that imports of such products are materially injuring, or threatening material injury to, the passenger tires industry in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition was accompanied by information reasonably available to the petitioner supporting its allegation. Commerce finds that the petitioner is an interested party, as defined in section 771(9)(D) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support for the initiation of the requested CVD investigation.6 jbell on DSKJLSW7X2PROD with NOTICES Period of Investigation Because the Petition was filed on May 13, 2020, the period of investigation is January 1, 2019 through December 31, 2019.7 3 See Commerce’s Letters, ‘‘Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam: Response to Supplemental Questions,’’ dated May 20, 2020 (General Issues Supplemental); and Country-Specific Supplemental Questionnaires: ‘‘Petition for the Imposition of Countervailing Duties on Imports of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam: Supplemental Questions,’’ dated May 18, 2020 and ‘‘Petition for the Imposition of Countervailing Duties on Imports of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam: Additional Supplemental Question’’ dated June 8, 2020. 4 See the Petitioner’s Country-Specific Supplemental Responses, ‘‘Passenger Vehicle and Light Truck Tires from Vietnam: Response to Supplemental Questions,’’ dated May 20, 2020; see also Petitioner’s Letter, ‘‘Passenger Vehicle and Light Truck Tires from Vietnam: Response to Supplemental Questions,’’ dated June 10, 2020. 5 See Notice of Extension of the Deadline for Determining the Adequacy of the Antidumping and Countervailing Duty Petitions: Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam, 85 FR 32013 (May 28, 2020) (Initiation Extension Notice). 6 See infra, section on ‘‘Determination of Industry Support for the Petition.’’ 7 See 19 CFR 351.204(b)(2). VerDate Sep<11>2014 20:25 Jun 26, 2020 Jkt 250001 Scope of the Investigation The products covered by this investigation are passenger tires from Vietnam. For a full description of the scope of this investigation, see the Appendix to this notice. Comments on the Scope of the Investigation As discussed in the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (i.e., scope).8 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,9 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit such comments by 5:00 p.m. Eastern Time (ET) on July 13, 2020, which is the next business day after 20 calendar days from the signature date of this notice.10 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on July 23, 2020, which is ten calendar days from the initial comment deadline.11 Commerce requests that any factual information parties consider relevant to the scope of the investigation be submitted during this period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact Commerce and request permission to submit the additional information. All such comments must be filed on the records of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically via Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception applies.12 An 8 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 9 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 10 In this case, 20 days after initiation falls on July 12, 2020, a Sunday. Where a deadline falls on a weekend or federal holiday, the appropriate deadline is the next business day. See Notice of Clarification: Application of ‘‘Next Business Day’’ Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005). 11 See 19 CFR 351.303(b). 12 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 38851 electronically filed document must be received successfully in its entirety by the time and date it is due. Consultations Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified representatives of the GOV of the receipt of the Petition and provided it the opportunity for consultations with respect to the Petition.13 Consultations were held with the GOV on April 27, 2020.14 The GOV submitted consultation remarks on June 16, 2020.15 Determination of Industry Support for the Petition Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) Poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of Commerce’s electronic filing requirements, effective August 5, 2011. Information on help using ACCESS can be found at https://access.trade.gov/ help.aspx and a handbook can be found at https:// access.trade.gov/help/Handbook_on_Electronic_ Filing_Procedures.pdf. 13 See Commerce’s Letter, ‘‘Countervailing Duty Petition on Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam; Invitation for Consultations to Discuss the Countervailing Duty Petition,’’ dated May 14, 2020. 14 See Memorandum, ‘‘Consultations with Officials from the Government of the Socialist Republic of Vietnam Regarding the Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam,’’ dated June 2, 2020. 15 See GOV’s Letter, ‘‘Submission of Viet Nam regarding the Petition for the initiation of antidumping, anti-subsidy investigations on imports of passenger vehicles and light trucks tires (PVL T Tires) from Viet Nam,’’ dated June 16, 2020. E:\FR\FM\29JNN1.SGM 29JNN1 38852 Federal Register / Vol. 85, No. 125 / Monday, June 29, 2020 / Notices to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC must apply the same statutory definition regarding the domestic like product,16 they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.17 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioner does not offer a definition of the domestic like product distinct from the scope of the investigation.18 Based on our analysis of the information submitted on the record, we have determined that passenger tires, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product.19 On May 21, 2020, Commerce extended the initiation deadline by 20 days to poll the domestic industry in accordance with section 702(c)(4)(D) of the Act, because it was not ‘‘clear from 16 See section 771(10) of the Act. USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 18 See Volume I of the Petition at 3–5, and Exhibits I–1 and I–3. 19 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Countervailing Duty Investigation Initiation Checklist: Passenger Vehicle and Light Truck Tires from Vietnam (Vietnam CVD Initiation Checklist) at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam (Attachment II). The checklist is dated concurrently with this notice and on file electronically via ACCESS. jbell on DSKJLSW7X2PROD with NOTICES 17 See VerDate Sep<11>2014 20:25 Jun 26, 2020 Jkt 250001 the Petitions whether the industry support criteria have been met . . . .’’ 20 On May 22, 2020, we issued polling questionnaires to all known producers identified in the Petition, as well as unions, employee organizations, or ad hoc groups of workers involved in the production of passenger tires.21 We requested that the companies/workers complete the polling questionnaire and certify their responses by the due date specified in the cover letter to the questionnaire.22 Our analysis of the data we received in the polling questionnaire responses indicates that the domestic producers and workers who support the Petition account for at least 25 percent of the total production of the domestic like product and more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition.23 Accordingly, Commerce determines that the industry support requirements of section 702(c)(4)(A) have been met and that the Petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act.24 Injury Test Because Vietnam is a ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from Vietnam materially injure, or threaten material injury to, a U.S. industry Allegations and Evidence of Material Injury and Causation The petitioner alleges that the U.S. industry producing the domestic like product is benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioner alleges that subject imports exceed the 20 See Initiation Extension Notice; see also Vietnam CVD Initiation Checklist at Attachment II. 21 See Memorandum, ‘‘Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam: Polling Questionnaire,’’ dated May 22, 2020; see also Volume I of the Petition at 5–6 and Exhibit I–2; and General Issues Supplemental at 3 and Exhibit 1. 22 For a detailed discussion of the responses received, see Vietnam CVD Initiation Checklist at Attachment II. The polling questionnaire and questionnaire responses are on file electronically via ACCESS. 23 See Vietnam CVD Initiation Checklist at Attachment II. 24 Id. PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 negligibility threshold provided for under section 771(24)(A) of the Act.25 The petitioner contends that the industry’s injured condition is illustrated by a significant and increasing volume of subject imports; reduced market share; underselling and price depression or suppression; production and shipments lagging behind demand; declines in capacity utilization and employment; and declining financial performance.26 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.27 Initiation of CVD Investigation Based upon the examination of the Petition and supplemental responses, we find that they meet the requirements of section 702 of the Act. Therefore, we are initiating a CVD investigation to determine whether imports of passenger tires from Vietnam benefit from countervailable subsidies conferred by the GOV. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation. Based on our review of the petition, we find that there is sufficient information to initiate a CVD investigation on all alleged programs. For a full discussion of the basis for our decision to initiate on each program, see Vietnam CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. Respondent Selection In the Petition, the petitioner named 13 companies 28 as producers/exporters of passenger tires. Commerce intends to follow its standard practice in CVD investigations and calculate companyspecific subsidy rates for each company. In the event Commerce determines that the number of companies is large and it cannot individually examine each company based upon its resources, 25 See Volume I of the Petitions at 19–20 and Exhibit I–9. 26 See Volume I of the Petitions at 23–37 and Exhibits I–3, I–9, and I–11 through I–15. 27 See CVD Vietnam Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam. 28 See Volume I of the Petition at 14 and Exhibit I–8. E:\FR\FM\29JNN1.SGM 29JNN1 Federal Register / Vol. 85, No. 125 / Monday, June 29, 2020 / Notices where appropriate, Commerce intends to select mandatory respondents based on U.S. Customs and Border Protection (CBP) data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States numbers listed in the ‘‘Scope of the Investigation,’’ in the appendix to this notice. On June 16, 2020, Commerce released CBP data on imports of passenger tires from Vietnam under Administrative Protective Order (APO) to all parties with access to information protected by APO and indicated that interested parties wishing to comment on the CBP data or respondent selection must do so within three business days of the publication date of the notice of initiation of this CVD investigation.29 Comments must be filed electronically using ACCESS. An electronically-filed document must be received successfully in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Commerce will not accept rebuttal comments regarding the CBP data or respondent selection. Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on Commerce’s website at http://enforcement.trade.gov/apo. Distribution of Copies of the CVD Petition In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the GOV via ACCESS. To the extent practicable, Commerce will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, as provided under 19 CFR 351.203(c)(2). jbell on DSKJLSW7X2PROD with NOTICES ITC Notification Commerce will notify the ITC of our initiation, as required by section 702(d) of the Act. Preliminary Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of passenger tires from Vietnam are materially injuring, or threatening material injury to, a U.S. industry. A negative ITC determination will result in the investigation being terminated. Otherwise, this investigation will proceed according to statutory and regulatory time limits. 29 See Memorandum, ‘‘Countervailing Duty Investigation of Passenger Tires: Release of Customs Data from U.S. Customs and Border Protection,’’ dated June 16, 2020. VerDate Sep<11>2014 20:25 Jun 26, 2020 Jkt 250001 Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)–(iv). Any party, when submitting factual information, must specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 30 and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.31 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in this investigation. Extension of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by Commerce. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, Commerce may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, Commerce will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, stand-alone submission; under limited circumstances Commerce will grant untimely-filed requests for the extension of time limits. Parties should review Extension of Time Limits, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-201330 See 31 See PO 00000 19 CFR 351.301(b). 19 CFR 351.301(b)(2). Frm 00014 Fmt 4703 Sfmt 4703 38853 09-20/html/2013-22853.htm, prior to submitting factual information in this investigation. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.32 Parties must use the certification formats provided in 19 CFR 351.303(g).33 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. Instructions for filing such applications may be found on the Commerce website at http://enforcement.trade.gov/apo. Parties wishing to participate in this investigation should ensure that they meet the requirements of 19 CFR 351.103(d) (e.g., by filing a notice of appearance). Note that Commerce has temporarily modified certain portions of its requirements for serving documents containing business proprietary information, until July 17, 2020, unless extended.34 This notice is issued and published pursuant to sections 702(c)(2) and 777(i) of the Act, and 19 CFR 351.203(c). Dated: June 22, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix—Scope of the Investigation The scope of this investigation is passenger vehicle and light truck tires. Passenger vehicle and light truck tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. Tires covered by this investigation may be tubetype, tubeless, radial, or non-radial, and they may be intended for sale to original equipment manufacturers or the replacement market. Subject tires have, at the time of importation, the symbol ‘‘DOT’’ on the sidewall, certifying that the tire conforms to applicable motor vehicle safety standards. Subject tires may also have the following prefixes or suffix in their tire size 32 See section 782(b) of the Act. Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to frequently asked questions regarding the Final Rule are available at http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 34 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 29615 (May18, 2020). 33 See E:\FR\FM\29JNN1.SGM 29JNN1 jbell on DSKJLSW7X2PROD with NOTICES 38854 Federal Register / Vol. 85, No. 125 / Monday, June 29, 2020 / Notices designation, which also appears on the sidewall of the tire: Prefix designations: P—Identifies a tire intended primarily for service on passenger cars. LT—Identifies a tire intended primarily for service on light trucks. Suffix letter designations: LT—Identifies light truck tires for service on trucks, buses, trailers, and multipurpose passenger vehicles used in nominal highway service. All tires with a ‘‘P’’ or ‘‘LT’’ prefix, and all tires with an ‘‘LT’’ suffix in their sidewall markings are covered by this investigation regardless of their intended use. In addition, all tires that lack a ‘‘P’’ or ‘‘LT’’ prefix or suffix in their sidewall markings, as well as all tires that include any other prefix or suffix in their sidewall markings, are included in the scope, regardless of their intended use, as long as the tire is of a size that fits passenger cars or light trucks. Sizes that fit passenger cars and light trucks include, but are not limited to, the numerical size designations listed in the passenger car section or light truck section of the Tire and Rim Association Year Book, as updated annually. The scope includes all tires that are of a size that fits passenger cars or light trucks, unless the tire falls within one of the specific exclusions set out below. Passenger vehicle and light truck tires, whether or not attached to wheels or rims, are included in the scope. However, if a subject tire is imported attached to a wheel or rim, only the tire is covered by the scope. Specifically excluded from the scope are the following types of tires: (1) Racing car tires; such tires do not bear the symbol ‘‘DOT’’ on the sidewall and may be marked with ‘‘ZR’’ in size designation; (2) pneumatic tires, of rubber, that are not new, including recycled and retreaded tires; (3) non-pneumatic tires, such as solid rubber tires; (4) tires designed and marketed exclusively as temporary use spare tires for passenger vehicles which, in addition, exhibit each of the following physical characteristics: (a) The size designation and load index combination molded on the tire’s sidewall are listed in Table PCT–1B (‘‘T’’ Type Spare Tires for Temporary Use on Passenger Vehicles) or PCT–1B (‘‘T’’ Type Diagonal (Bias) Spare Tires for Temporary Use on Passenger Vehicles) of the Tire and Rim Association Year Book, (b) the designation ‘‘T’’ is molded into the tire’s sidewall as part of the size designation, and, (c) the tire’s speed rating is molded on the sidewall, indicating the rated speed in MPH or a letter rating as listed by Tire and Rim Association Year Book, and the rated speed is 81 MPH or a ‘‘M’’ rating; (5) tires designed and marketed exclusively for specialty tire (ST) use which, in addition, exhibit each of the following conditions: (a) The size designation molded on the tire’s sidewall is listed in the ST sections of the Tire and Rim Association Year Book, (b) the designation ‘‘ST’’ is molded into the tire’s sidewall as part of the size designation, (c) the tire incorporates a warning, prominently molded on the sidewall, that the VerDate Sep<11>2014 20:25 Jun 26, 2020 Jkt 250001 tire is ‘‘For Trailer Service Only’’ or ‘‘For Trailer Use Only’’, (d) the load index molded on the tire’s sidewall meets or exceeds those load indexes listed in the Tire and Rim Association Year Book for the relevant ST tire size, and (e) either (i) the tire’s speed rating is molded on the sidewall, indicating the rated speed in MPH or a letter rating as listed by Tire and Rim Association Year Book, and the rated speed does not exceed 81 MPH or an ‘‘M’’ rating; or (ii) the tire’s speed rating molded on the sidewall is 87 MPH or an ‘‘N’’ rating, and in either case the tire’s maximum pressure and maximum load limit are molded on the sidewall and either (1) both exceed the maximum pressure and maximum load limit for any tire of the same size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book; or (2) if the maximum cold inflation pressure molded on the tire is less than any cold inflation pressure listed for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book, the maximum load limit molded on the tire is higher than the maximum load limit listed at that cold inflation pressure for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book; (6) tires designed and marketed exclusively for off-road use and which, in addition, exhibit each of the following physical characteristics: (a) The size designation and load index combination molded on the tire’s sidewall are listed in the off-the-road, agricultural, industrial or ATV section of the Tire and Rim Association Year Book, (b) in addition to any size designation markings, the tire incorporates a warning, prominently molded on the sidewall, that the tire is ‘‘Not For Highway Service’’ or ‘‘Not for Highway Use’’, (c) the tire’s speed rating is molded on the sidewall, indicating the rated speed in MPH or a letter rating as listed by the Tire and Rim Association Year Book, and the rated speed does not exceed 55 MPH or a ‘‘G’’ rating, and (d) the tire features a recognizable off-road tread design. The products covered by this investigation are currently classified under the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10. Tires meeting the scope description may also enter under the following HTSUS subheadings: 4011.90.10.10, 4011.90.10.50, 4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.60, 8708.70.60.30, 8708.70.60.45, and 8708.70.60.60. While HTSUS subheadings are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive. [FR Doc. 2020–13957 Filed 6–26–20; 8:45 am] BILLING CODE 3510–DS–P PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 DEPARTMENT OF COMMERCE International Trade Administration [A–580–908, A–583–869, A–549–842, A–552– 828] Passenger Vehicle and Light Truck Tires From the Republic of Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam: Initiation of LessThan-Fair-Value Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable June 22, 2020. FOR FURTHER INFORMATION CONTACT: Alex Villanueva; AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–3208. SUPPLEMENTARY INFORMATION: AGENCY: The Petitions On May 13, 2020, the Department of Commerce (Commerce) received antidumping duty (AD) petitions concerning imports of passenger vehicle and light truck tires (passenger tires) from the Republic of Korea (Korea), Taiwan, Thailand, and the Socialist Republic of Vietnam (Vietnam) filed in proper form on behalf of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL–CIO, CLC (the petitioner).1 The Petitions were accompanied by a countervailing duty (CVD) petition concerning imports of passenger tires from Vietnam.2 Between May 18 and 22, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petitions in separate supplemental questionnaires.3 The petitioner filed responses to the 1 See Petitioner’s Letter, ‘‘Passenger Vehicle and Light Truck Tires from the Republic of Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam—Petition for the Imposition of Antidumping and Countervailing Duties,’’ dated May 13, 2020 (the Petitions). 2 Id. 3 See Commerce’s Letters, ‘‘Petitions for the Imposition of Antidumping Duties on Imports of Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam: Supplemental Questions,’’ dated May 18, 2020; and ‘‘Country-Specific Supplemental Questionnaires: Korea Supplemental, Thailand Supplemental, Taiwan Supplemental, Vietnam Supplemental,’’ dated May 18, 2020; see also ‘‘Petition for the Imposition of Antidumping Duties on Imports of Passenger Vehicle and Light Truck Tires from the Thailand: Second Supplemental Questionnaire,’’ dated May 21, 2020. E:\FR\FM\29JNN1.SGM 29JNN1

Agencies

[Federal Register Volume 85, Number 125 (Monday, June 29, 2020)]
[Notices]
[Pages 38850-38854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13957]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-829]


Passenger Vehicle and Light Truck Tires From the Socialist 
Republic of Vietnam: Initiation of Countervailing Duty Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

DATES: Applicable June 22, 2020.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer; AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0410.

SUPPLEMENTARY INFORMATION: 

The Petition

    On May 13, 2020, the Department of Commerce (Commerce) received a 
countervailing duty (CVD) petition concerning imports of passenger 
vehicle and light truck tires (passenger tires) from the Socialist 
Republic of Vietnam (Vietnam) filed in proper form on behalf of the 
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied 
Industrial and Service Workers International Union, AFL-CIO, CLC (the 
petitioner).\1\ The petition was accompanied by antidumping duty (AD) 
petitions concerning imports of passenger tires from Vietnam, Republic 
of Korea, Taiwan, and Thailand.\2\
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Passenger vehicle and light truck 
tires from the Republic of Korea, Taiwan, Thailand, and the 
Socialist Republic of Vietnam--Petition for the Imposition of 
Antidumping and Countervailing Duties,'' dated May 13, 2020 (the 
Petition).
    \2\ Id.

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[[Page 38851]]

    Between May 18 and June 8, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petition.\3\ The 
petitioner filed responses to these requests on May 20 and June 10, 
2020.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Passenger Vehicle and Light Truck 
Tires from Korea, Taiwan, Thailand, and Vietnam: Response to 
Supplemental Questions,'' dated May 20, 2020 (General Issues 
Supplemental); and Country-Specific Supplemental Questionnaires: 
``Petition for the Imposition of Countervailing Duties on Imports of 
Passenger Vehicle and Light Truck Tires from the Socialist Republic 
of Vietnam: Supplemental Questions,'' dated May 18, 2020 and 
``Petition for the Imposition of Countervailing Duties on Imports of 
Passenger Vehicle and Light Truck Tires from the Socialist Republic 
of Vietnam: Additional Supplemental Question'' dated June 8, 2020.
    \4\ See the Petitioner's Country-Specific Supplemental 
Responses, ``Passenger Vehicle and Light Truck Tires from Vietnam: 
Response to Supplemental Questions,'' dated May 20, 2020; see also 
Petitioner's Letter, ``Passenger Vehicle and Light Truck Tires from 
Vietnam: Response to Supplemental Questions,'' dated June 10, 2020.
---------------------------------------------------------------------------

    On May 21, 2020, Commerce extended the initiation deadline by 20 
days to poll the domestic industry in accordance with section 
702(c)(4)(D) of the Act, because it was not ``clear from the Petitions 
whether the industry support criteria have been met . . . .'' \5\
---------------------------------------------------------------------------

    \5\ See Notice of Extension of the Deadline for Determining the 
Adequacy of the Antidumping and Countervailing Duty Petitions: 
Passenger Vehicle and Light Truck Tires from Korea, Taiwan, 
Thailand, and Vietnam, 85 FR 32013 (May 28, 2020) (Initiation 
Extension Notice).
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of 
Vietnam (GOV) is providing countervailable subsidies within the meaning 
of sections 701 and 771(5) of the Act, and that imports of such 
products are materially injuring, or threatening material injury to, 
the passenger tires industry in the United States. Consistent with 
section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged 
programs on which we are initiating a CVD investigation, the Petition 
was accompanied by information reasonably available to the petitioner 
supporting its allegation.
    Commerce finds that the petitioner is an interested party, as 
defined in section 771(9)(D) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support for the initiation 
of the requested CVD investigation.\6\
---------------------------------------------------------------------------

    \6\ See infra, section on ``Determination of Industry Support 
for the Petition.''
---------------------------------------------------------------------------

Period of Investigation

    Because the Petition was filed on May 13, 2020, the period of 
investigation is January 1, 2019 through December 31, 2019.\7\
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are passenger tires from 
Vietnam. For a full description of the scope of this investigation, see 
the Appendix to this notice.

Comments on the Scope of the Investigation

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\8\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\9\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on July 13, 2020, which is the next business day after 20 calendar 
days from the signature date of this notice.\10\ Any rebuttal comments, 
which may include factual information, must be filed by 5:00 p.m. ET on 
July 23, 2020, which is ten calendar days from the initial comment 
deadline.\11\
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    \8\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \10\ In this case, 20 days after initiation falls on July 12, 
2020, a Sunday. Where a deadline falls on a weekend or federal 
holiday, the appropriate deadline is the next business day. See 
Notice of Clarification: Application of ``Next Business Day'' Rule 
for Administrative Determination Deadlines Pursuant to the Tariff 
Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
    \11\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such comments must be filed on 
the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\12\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \12\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------

Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified representatives of the GOV of the receipt of the Petition and 
provided it the opportunity for consultations with respect to the 
Petition.\13\ Consultations were held with the GOV on April 27, 
2020.\14\ The GOV submitted consultation remarks on June 16, 2020.\15\
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    \13\ See Commerce's Letter, ``Countervailing Duty Petition on 
Passenger Vehicle and Light Truck Tires from the Socialist Republic 
of Vietnam; Invitation for Consultations to Discuss the 
Countervailing Duty Petition,'' dated May 14, 2020.
    \14\ See Memorandum, ``Consultations with Officials from the 
Government of the Socialist Republic of Vietnam Regarding the 
Countervailing Duty Investigation of Passenger Vehicle and Light 
Truck Tires from the Socialist Republic of Vietnam,'' dated June 2, 
2020.
    \15\ See GOV's Letter, ``Submission of Viet Nam regarding the 
Petition for the initiation of antidumping, anti-subsidy 
investigations on imports of passenger vehicles and light trucks 
tires (PVL T Tires) from Viet Nam,'' dated June 16, 2020.
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus,

[[Page 38852]]

to determine whether a petition has the requisite industry support, the 
statute directs Commerce to look to producers and workers who produce 
the domestic like product. The International Trade Commission (ITC), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\16\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\17\
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    \16\ See section 771(10) of the Act.
    \17\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\18\ Based on our analysis of the information 
submitted on the record, we have determined that passenger tires, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\19\
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    \18\ See Volume I of the Petition at 3-5, and Exhibits I-1 and 
I-3.
    \19\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist: Passenger 
Vehicle and Light Truck Tires from Vietnam (Vietnam CVD Initiation 
Checklist) at Attachment II, Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Passenger 
Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and 
Vietnam (Attachment II). The checklist is dated concurrently with 
this notice and on file electronically via ACCESS.
---------------------------------------------------------------------------

    On May 21, 2020, Commerce extended the initiation deadline by 20 
days to poll the domestic industry in accordance with section 
702(c)(4)(D) of the Act, because it was not ``clear from the Petitions 
whether the industry support criteria have been met . . . .'' \20\
---------------------------------------------------------------------------

    \20\ See Initiation Extension Notice; see also Vietnam CVD 
Initiation Checklist at Attachment II.
---------------------------------------------------------------------------

    On May 22, 2020, we issued polling questionnaires to all known 
producers identified in the Petition, as well as unions, employee 
organizations, or ad hoc groups of workers involved in the production 
of passenger tires.\21\ We requested that the companies/workers 
complete the polling questionnaire and certify their responses by the 
due date specified in the cover letter to the questionnaire.\22\
---------------------------------------------------------------------------

    \21\ See Memorandum, ``Passenger Vehicle and Light Truck Tires 
from Korea, Taiwan, Thailand, and Vietnam: Polling Questionnaire,'' 
dated May 22, 2020; see also Volume I of the Petition at 5-6 and 
Exhibit I-2; and General Issues Supplemental at 3 and Exhibit 1.
    \22\ For a detailed discussion of the responses received, see 
Vietnam CVD Initiation Checklist at Attachment II. The polling 
questionnaire and questionnaire responses are on file electronically 
via ACCESS.
---------------------------------------------------------------------------

    Our analysis of the data we received in the polling questionnaire 
responses indicates that the domestic producers and workers who support 
the Petition account for at least 25 percent of the total production of 
the domestic like product and more than 50 percent of the production of 
the domestic like product produced by that portion of the industry 
expressing support for, or opposition to, the Petition.\23\ 
Accordingly, Commerce determines that the industry support requirements 
of section 702(c)(4)(A) have been met and that the Petition was filed 
on behalf of the domestic industry within the meaning of section 
702(b)(1) of the Act.\24\
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    \23\ See Vietnam CVD Initiation Checklist at Attachment II.
    \24\ Id.
---------------------------------------------------------------------------

Injury Test

    Because Vietnam is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from Vietnam materially 
injure, or threaten material injury to, a U.S. industry

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is benefitting from countervailable subsidies and 
that such imports are causing, or threaten to cause, material injury to 
the U.S. industry producing the domestic like product. In addition, the 
petitioner alleges that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\25\
---------------------------------------------------------------------------

    \25\ See Volume I of the Petitions at 19-20 and Exhibit I-9.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
production and shipments lagging behind demand; declines in capacity 
utilization and employment; and declining financial performance.\26\ We 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as negligibility, 
and determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\27\
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    \26\ See Volume I of the Petitions at 23-37 and Exhibits I-3, I-
9, and I-11 through I-15.
    \27\ See CVD Vietnam Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Passenger Vehicle and Light Truck Tires from Korea, Taiwan, 
Thailand, and Vietnam.
---------------------------------------------------------------------------

Initiation of CVD Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that they meet the requirements of section 702 of 
the Act. Therefore, we are initiating a CVD investigation to determine 
whether imports of passenger tires from Vietnam benefit from 
countervailable subsidies conferred by the GOV. In accordance with 
section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determination no later than 65 
days after the date of this initiation.
    Based on our review of the petition, we find that there is 
sufficient information to initiate a CVD investigation on all alleged 
programs. For a full discussion of the basis for our decision to 
initiate on each program, see Vietnam CVD Initiation Checklist. A 
public version of the initiation checklist for this investigation is 
available on ACCESS.

Respondent Selection

    In the Petition, the petitioner named 13 companies \28\ as 
producers/exporters of passenger tires. Commerce intends to follow its 
standard practice in CVD investigations and calculate company-specific 
subsidy rates for each company. In the event Commerce determines that 
the number of companies is large and it cannot individually examine 
each company based upon its resources,

[[Page 38853]]

where appropriate, Commerce intends to select mandatory respondents 
based on U.S. Customs and Border Protection (CBP) data for U.S. imports 
under the appropriate Harmonized Tariff Schedule of the United States 
numbers listed in the ``Scope of the Investigation,'' in the appendix 
to this notice.
---------------------------------------------------------------------------

    \28\ See Volume I of the Petition at 14 and Exhibit I-8.
---------------------------------------------------------------------------

    On June 16, 2020, Commerce released CBP data on imports of 
passenger tires from Vietnam under Administrative Protective Order 
(APO) to all parties with access to information protected by APO and 
indicated that interested parties wishing to comment on the CBP data or 
respondent selection must do so within three business days of the 
publication date of the notice of initiation of this CVD 
investigation.\29\ Comments must be filed electronically using ACCESS. 
An electronically-filed document must be received successfully in its 
entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Commerce 
will not accept rebuttal comments regarding the CBP data or respondent 
selection.
---------------------------------------------------------------------------

    \29\ See Memorandum, ``Countervailing Duty Investigation of 
Passenger Tires: Release of Customs Data from U.S. Customs and 
Border Protection,'' dated June 16, 2020.
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at http://enforcement.trade.gov/apo.

Distribution of Copies of the CVD Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOV via ACCESS. To the extent practicable, Commerce 
will attempt to provide a copy of the public version of the Petition to 
each exporter named in the Petition, as provided under 19 CFR 
351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our initiation, as required by 
section 702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of passenger tires from Vietnam are materially 
injuring, or threatening material injury to, a U.S. industry. A 
negative ITC determination will result in the investigation being 
terminated. Otherwise, this investigation will proceed according to 
statutory and regulatory time limits.

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \30\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\31\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Interested parties should review the 
regulations prior to submitting factual information in this 
investigation.
---------------------------------------------------------------------------

    \30\ See 19 CFR 351.301(b).
    \31\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extension of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, Commerce may elect to specify a different 
time limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances 
Commerce will grant untimely-filed requests for the extension of time 
limits. Parties should review Extension of Time Limits, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\32\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\33\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \32\ See section 782(b) of the Act.
    \33\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Commerce website at http://enforcement.trade.gov/apo. Parties wishing to participate in this 
investigation should ensure that they meet the requirements of 19 CFR 
351.103(d) (e.g., by filing a notice of appearance). Note that Commerce 
has temporarily modified certain portions of its requirements for 
serving documents containing business proprietary information, until 
July 17, 2020, unless extended.\34\
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    \34\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May18, 
2020).
---------------------------------------------------------------------------

    This notice is issued and published pursuant to sections 702(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: June 22, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigation

    The scope of this investigation is passenger vehicle and light 
truck tires. Passenger vehicle and light truck tires are new 
pneumatic tires, of rubber, with a passenger vehicle or light truck 
size designation. Tires covered by this investigation may be tube-
type, tubeless, radial, or non-radial, and they may be intended for 
sale to original equipment manufacturers or the replacement market.
    Subject tires have, at the time of importation, the symbol 
``DOT'' on the sidewall, certifying that the tire conforms to 
applicable motor vehicle safety standards. Subject tires may also 
have the following prefixes or suffix in their tire size

[[Page 38854]]

designation, which also appears on the sidewall of the tire:
    Prefix designations:
    P--Identifies a tire intended primarily for service on passenger 
cars.
    LT--Identifies a tire intended primarily for service on light 
trucks.
    Suffix letter designations:
    LT--Identifies light truck tires for service on trucks, buses, 
trailers, and multipurpose passenger vehicles used in nominal 
highway service.
    All tires with a ``P'' or ``LT'' prefix, and all tires with an 
``LT'' suffix in their sidewall markings are covered by this 
investigation regardless of their intended use.
    In addition, all tires that lack a ``P'' or ``LT'' prefix or 
suffix in their sidewall markings, as well as all tires that include 
any other prefix or suffix in their sidewall markings, are included 
in the scope, regardless of their intended use, as long as the tire 
is of a size that fits passenger cars or light trucks. Sizes that 
fit passenger cars and light trucks include, but are not limited to, 
the numerical size designations listed in the passenger car section 
or light truck section of the Tire and Rim Association Year Book, as 
updated annually. The scope includes all tires that are of a size 
that fits passenger cars or light trucks, unless the tire falls 
within one of the specific exclusions set out below.
    Passenger vehicle and light truck tires, whether or not attached 
to wheels or rims, are included in the scope. However, if a subject 
tire is imported attached to a wheel or rim, only the tire is 
covered by the scope.
    Specifically excluded from the scope are the following types of 
tires:
    (1) Racing car tires; such tires do not bear the symbol ``DOT'' 
on the sidewall and may be marked with ``ZR'' in size designation;
    (2) pneumatic tires, of rubber, that are not new, including 
recycled and retreaded tires;
    (3) non-pneumatic tires, such as solid rubber tires;
    (4) tires designed and marketed exclusively as temporary use 
spare tires for passenger vehicles which, in addition, exhibit each 
of the following physical characteristics:
    (a) The size designation and load index combination molded on 
the tire's sidewall are listed in Table PCT-1B (``T'' Type Spare 
Tires for Temporary Use on Passenger Vehicles) or PCT-1B (``T'' Type 
Diagonal (Bias) Spare Tires for Temporary Use on Passenger Vehicles) 
of the Tire and Rim Association Year Book,
    (b) the designation ``T'' is molded into the tire's sidewall as 
part of the size designation, and,
    (c) the tire's speed rating is molded on the sidewall, 
indicating the rated speed in MPH or a letter rating as listed by 
Tire and Rim Association Year Book, and the rated speed is 81 MPH or 
a ``M'' rating;
    (5) tires designed and marketed exclusively for specialty tire 
(ST) use which, in addition, exhibit each of the following 
conditions:
    (a) The size designation molded on the tire's sidewall is listed 
in the ST sections of the Tire and Rim Association Year Book,
    (b) the designation ``ST'' is molded into the tire's sidewall as 
part of the size designation,
    (c) the tire incorporates a warning, prominently molded on the 
sidewall, that the tire is ``For Trailer Service Only'' or ``For 
Trailer Use Only'',
    (d) the load index molded on the tire's sidewall meets or 
exceeds those load indexes listed in the Tire and Rim Association 
Year Book for the relevant ST tire size, and
    (e) either
    (i) the tire's speed rating is molded on the sidewall, 
indicating the rated speed in MPH or a letter rating as listed by 
Tire and Rim Association Year Book, and the rated speed does not 
exceed 81 MPH or an ``M'' rating; or
    (ii) the tire's speed rating molded on the sidewall is 87 MPH or 
an ``N'' rating, and in either case the tire's maximum pressure and 
maximum load limit are molded on the sidewall and either
    (1) both exceed the maximum pressure and maximum load limit for 
any tire of the same size designation in either the passenger car or 
light truck section of the Tire and Rim Association Year Book; or
    (2) if the maximum cold inflation pressure molded on the tire is 
less than any cold inflation pressure listed for that size 
designation in either the passenger car or light truck section of 
the Tire and Rim Association Year Book, the maximum load limit 
molded on the tire is higher than the maximum load limit listed at 
that cold inflation pressure for that size designation in either the 
passenger car or light truck section of the Tire and Rim Association 
Year Book;
    (6) tires designed and marketed exclusively for off-road use and 
which, in addition, exhibit each of the following physical 
characteristics:
    (a) The size designation and load index combination molded on 
the tire's sidewall are listed in the off-the-road, agricultural, 
industrial or ATV section of the Tire and Rim Association Year Book,
    (b) in addition to any size designation markings, the tire 
incorporates a warning, prominently molded on the sidewall, that the 
tire is ``Not For Highway Service'' or ``Not for Highway Use'',
    (c) the tire's speed rating is molded on the sidewall, 
indicating the rated speed in MPH or a letter rating as listed by 
the Tire and Rim Association Year Book, and the rated speed does not 
exceed 55 MPH or a ``G'' rating, and
    (d) the tire features a recognizable off-road tread design.
    The products covered by this investigation are currently 
classified under the following Harmonized Tariff Schedule of the 
United States (HTSUS) subheadings: 4011.10.10.10, 4011.10.10.20, 
4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 
4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10. 
Tires meeting the scope description may also enter under the 
following HTSUS subheadings: 4011.90.10.10, 4011.90.10.50, 
4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 
8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.60, 
8708.70.60.30, 8708.70.60.45, and 8708.70.60.60. While HTSUS 
subheadings are provided for convenience and for customs purposes, 
the written description of the subject merchandise is dispositive.

[FR Doc. 2020-13957 Filed 6-26-20; 8:45 am]
BILLING CODE 3510-DS-P