Commercial Business

Updated: It's Final: Tariffs Will Be Charged on OTR Tires From India and Sri Lanka

Posted on February 3, 2017

The International Trade Commission (ITC) has upheld the tariffs on off-the-road tires suggested by the U.S. Department of Commerce (DOC).

Add OTR tires from India and Sri Lanka to the list of products that will be assessed tariffs in the U.S.
Add OTR tires from India and Sri Lanka to the list of products that will be assessed tariffs in the U.S.
The ITC voted at 11 a.m. on Feb. 3, 2017, and affirmed the anti-dumping and countervailing tariff investigations.

The commission voted 5-0 that the U.S. industry is being materially injured by imported OTR tires from the affected countries. A sixth commissioner, Dean Pinkert, recused himself from the investigation in December.

The commission does not immediately issue information on why it voted one way or another. Those details will be provided by the ITC no later than March 16, 2017. The report will be available here.

The vote confirms the previous findings of the DOC, and regulates that some OTR tire makers in India will pay a 3.67% anti-dumping tariff. (Balkrishna Industries Ltd. is exempt from the dumping tariff because the government said it found no proof BKT had sold tires in the U.S. at less than fair market value.)

The vote also confirms OTR tire makers in India will pay their assessed countervailing duties. Alliance Tires Pvt. Ltd. will pay a 4.9% countervailing tariff, BKT will pay a 5.36% rate, and all other OTR tire makers in India will pay a 5.06% countervailing tariff.

OTR tire manufacturers in Sri Lanka also will pay countervailing tariffs to offset the subsidies they've received from that country's government. All OTR tire makers in Sri Lanka will be charged a 2.18% tariff.

The agencies will forward their affirmative vote to the U.S. Customs and Border Protection, which will begin collecting the tariffs on shipments from India and Sri Lanka.

None of the tire makers will have to pay tariffs retroactively. The commission did not find evidence of a surge of imports when the tariff investigation began, so goods that entered the U.S. prior to June 20, 2016, (the date the DOC issued its preliminary findings) will not be subject to retroactive duties.

Related Topics: DOC, ITC, OTR tariffs, tariffs

Comments ( 1 )
  • david

     | about 9 months ago

    More penalties for the consumer! To protect who?? Where is the news media concerning this??

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