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 12 months ago

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

More Stories
News Yokohama to Increase OTR Tire Production

Yokohama Rubber Co. Ltd. plans to spend $45.5 million to expand production of off-the-road tires at an Alliance Tire Group plant in India. By the end of 2019 the company says production capacity at the site will increase more than 60%, to 91,700 tons.  

Article Close the Gap or Lose the Sale: Use Your Advantages to Overcome Abandonment

I’m tired of talking about the internet, but I might be the only one. It’s a subject that tire dealers talk about all the time, and it doesn’t appear the internet is going out of business anytime soon. There aren’t any future plans to turn it off.

The retail business may be the foundation, but Point S Battle Mountain Tire and Auto Service wants to expand its commercial footprint. That means hauling tires to its customers’ locations or work sites is a regular task.
Article From Miner to Tire Dealer

Walt Holland comes from a family of miners. Growing up he worked in the uranium mine his father owned, and he went on to spend 30 years working in Nevada’s gold, silver and copper mines. He eventually became a mine operations manager for Newmont Mining Corp., one of the largest mining companies in the U.S.

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!