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.