Commercial Business

Minor Tariff Relief for All But One OTR Tire Maker

Posted on January 4, 2017

Most off-the-road tire manufacturers in India and Sri Lanka will pay slightly lower tariffs on their imported products following the final stage of investigation by the U.S. Department of Commerce (DOC). The exception is Balkrishna Industries Ltd. (BKT).

The DOC studied whether OTR tires from India and Sri Lanka benefited from subsidies from the governments in those countries. Additionally, the DOC looked at whether OTR tires from India were being dumped at less than fair market value prices in the U.S.

Here are the results:

In the Sri Lanka investigation, the DOC says tire makers are benefitting from subsidies. But since the agency announced its preliminary findings in June, it has recalculated — and lowered — the tariff rate to be charged to offset those subsidies. For Camso, and all other producers in Sri Lanka, OTR tires will be charged a 2.18% tariff, down from the 2.9% rate set in June.

For tires from India, the DOC was consistent in one part of its investigation. Just like in the preliminary phase, the DOC says it found no evidence that OTR tire makers in India have sold products in the U.S. at less-than-fair-market prices. As a result, OTR tire manufacturers in India will not be charged anti-dumping tariffs.

Those same tire makers from India, however, will be charged tariffs to offset subsidies the DOC says they’re receiving. The good news is that most OTR tire manufacturers in India will pay lower tariff rates than they were initially assessed in June.

Here’s where BKT is the exception.

The DOC lowered the countervailing duty rates for ATC Tires Pvt. Ltd., a part of Alliance Tire Group, to 4.9% from the earlier 7.64%.

BKT’s rate was increased slightly, to 5.36% from 4.7%.

All other OTR tire makers in India will pay a 5.06% countervailing duty, down from the 6.17% assessed in June.

Related Topics: DOC, India, OTR tariffs, Sri Lanka

Comments ( 0 )
More Stories
Point S will work to expand its network of dealers thanks to a distribution agreement with Nussbaum Distributing President Mike Nussbam, left. He's pictured with members of the Point S team, Jim Richards, national cooperative recruiting executive; Walter Lybeck, CEO; and Clint Young, director of sales and business development.
News Tire Factory Looks to Expand Point S Brand With Nussbaum Distributing in Memphis

Tire Factory Inc. and Point S USA are making a big move to expand their network of tire dealers into the eastern half of the country. The company is partnering with Nussbaum Distributing Inc. in Memphis, Tenn., to distribute tires to four states.  

News Kickin' the (Truck) Tires Is Not Enough for TravelCenters of America

Since forming the TA Truck Service Commercial Tire Network in 2016, TravelCenters of America LLC has been a mover and a shaker in the commercial tire industry.

Toyo says the M588 is a value alternative for severe-use vehicles.
News Toyo M588 Is Designed for Heavy-Duty On- and Off-Road Use

The M588 heavy duty on/off-road drive tire from Toyo Tire U.S.A. Corp. is built for severe service applications, such as oil, gas, mining and logging operations.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!