Commercial Business

Errors Prompt DOC to Lower Some OTR Tire Tariffs

Posted on March 6, 2017

The Department of Commerce (DOC) has slightly decreased the tariff charged on off-the-road tires from India.

ATC Tires Pvt. Ltd., a part of Alliance Tire Group, alleged that the DOC made two miscalculations in its final determinations in January. The DOC agreed that it had double counted one benefit, and applied another to an incorrect span of time.

The result is the ATC tariff related to the subsidies it’s received is dropping from 4.9% to 4.72%.

And because the ATC rate was used to calculate the “all others” rate — which is applied to manufacturers and importers who weren’t required to submit their own data to the DOC — that “all others” rate is also decreasing, from 5.06% to 4.94%.

If all of this sounds slightly familiar, it’s because the DOC already has admitted it made other errors when calculating the anti-dumping tariff on OTR tires. Those miscalculations led the DOC to reverse course and begin charging anti-dumping tariffs on OTR tires from India on all but one tire manufacturer. The agency previously had indicated there was no evidence any company had dumped tires in the U.S., but its recalculations prompted tariffs of 3.67% for Alliance and other manufacturers. The lone exception in that case is Balkrishna Industries Ltd. (BKT). The government says there remains no evidence BKT dumped tires in the U.S. at lower than market prices.

With the new rates in place, the result is ATC will pay a combined 8.39% in tariffs on OTR tires from India. BKT will pay 5.36%. Its countervailing tariff was unaffected by the changes to the ATC rate.

Related Topics: DOC, OTR tariffs, tire tariffs

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