Commercial Business

‘Unintentional Errors’ Result in Higher Tariffs on Some OTR Tires

Posted on January 31, 2017

The U.S. Department of Commerce (DOC) has reversed course in one of its tire tariff investigations after discovering its previous calculations were incomplete. The result is now all but one off-the-road (OTR) tire manufacturer will pay an anti-dumping tariff on OTR tires made in India.

Balkrishna Industries Ltd. (BKT) is the only OTR tire maker in India excluded from the anti-dumping tariff. The DOC maintains there’s no evidence BKT dumped tires at a less-than-fair-market value in the U.S.

The change in calculations stems from documentation provided by Alliance Tires Pvt. Ltd. The result is Alliance will pay 3.67% tariff, and all other OTR tire makers also will pay 3.67%. Previously, the DOC said there was no need for an anti-dumping tariff because there was no evidence OTR tire manufacturers in India had dumped tires in the U.S.

The anti-dumping tariff is assessed on top of the countervailing tariff on OTR tires in India. (Countervailing tariffs are imposed to offset government subsidies the U.S. says foreign governments have provided manufacturers to produce and export their products.) Alliance will pay a 4.9% countervailing tariff, while BKT will pay a 5.36% rate. All other OTR tire makers in India will pay a 5.06% countervailing duty.

The details

What caused this change is in the details. Throughout its year-long investigation of OTR tires the DOC analyzed data provided by Alliance and BKT. After setting the final tariff rates Jan.4, 2017, the petitioners, the United Steelworkers, pointed to what it alleged were miscalculations in the formula used by the DOC to not assess Alliance any dumping tariff.

Ultimately, the DOC reviewed the paperwork and discovered three errors, two by the DOC, and one by Alliance. The DOC called these mistakes “unintentional errors,” and said it had authority to revise its final decision. And in this case, the updated calculations showed a dumping tariff was needed for Alliance.

And because Alliance’s data was used to set the tariff rate for all other non-named OTR tire makers in India (basically, everyone but BKT), the rate for other manufacturers needed to increase from zero to 3.67% as well.

Related Topics: Alliance, Balkrishna Industries Ltd., DOC, OTR tariffs, tariffs

Comments ( 0 )
More Stories
Bobby Hendry from 31 Inc. was from one of 80-plus vendors at the Tire Factory trade show. Here he talks to Mike Fleming, equipment supply manager for the dealer group, and Marc Thompson from Point S Everett in Everett, Wash.
News

Point S Rebranding Exceeds Expectations in the U.S., and Points to More Growth

Tire Factory Inc. members have rebranded the vast majority of their 206 stores to the Point S banner at a breakneck pace. And leaders of the Oregon-based cooperative are unveiling new programs with two big hopes: the momentum of current members continues, and more independent tire dealers join their network.

News

MATDA Joins TIA's Social Media Platform

The Mid-America Tire Dealers Association (MATDA) has joined the social media content platform developed by the Tire Industry Association (TIA) and the Automotive Marketing Foundation (AMF).

News

Toyo’s Net Tire Sales Drop 6.7% in 2016

Toyo Tire & Rubber Co. Ltd. reported a net loss of 12.3 billion yen on net sales of 381.6 billion yen for its fiscal year ended Dec. 31, 2016. That compares to net income of 1.6 billion yen on net sales of 407.8 billion yen for fiscal 2015.

Trelleborg says the new VF1050/50R32 tire for spreader applications limits soil compaction.
News

Trelleborg Has New TM3000 Spreader Tire

Trelleborg Wheel Systems will unveil a new tire size in its TM3000 range for spreader applications at agricultural trade shows in the U.S. and France in February.

News

Michelin’s Net Income Rises 43% in 2016

Margins on consumer tires helped boost Groupe Michelin’s net income 43% in 2016. Michelin posted net income of 1.7 billion euros on net sales of 20.9 billion euros for its fiscal year ended Dec. 31, 2016. That compares to income of 1.2 billion euros on sales of nearly 21.2 billion euros for fiscal 2015.

News

Kumho Suffers Fiscal Loss Followed by a 2-Day Strike

Kumho Tire Co. Ltd. posted a net loss of 58.4 billion won on net sales of more than 2.9 trillion won for its fiscal year ended Dec. 31, 2016. That compares to a net loss of 69.3 billion won on sales of 3 trillion won for fiscal 2015.

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!