Passenger Vehicle and Light Truck Tires From the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigation, 38850-38854 [2020-13957]
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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
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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
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[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
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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,
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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.
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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
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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).
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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
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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.
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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.
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17 See
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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.
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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.
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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
https://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).
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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.
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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
https://www.gpo.gov/fdsys/pkg/FR-201330 See
31 See
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19 CFR 351.301(b)(2).
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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 https://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
https://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
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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
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]]>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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
[[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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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 https://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.
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\30\ See 19 CFR 351.301(b).
\31\ See 19 CFR 351.301(b)(2).
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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 https://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
https://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 https://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).
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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
