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December 23, 2013

Duties on Chinese OTR tires will continue

The United States Department of Commerce (DOC) has ruled that duties leveled on OTR tires exported to the United States from China under a previous countervailing duty order will remain in place.

As published recently in the Federal Register, the DOC, through the International Trade Administration's Enforcement and Compliance Agency, determined that revocation of the countervailing duty (CVD) order would likely lead to the continuation or recurrence of the following existing Chinese subsidies on OTR tires:

* Guizhou Tire Co. Ltd., 2.52%.

* Hebei Starbright Co. Ltd., 35.13%.

* Tianjin United Tire and Rubbe International Co. Ltd., 6.85%.

* International Co. Ltd./all others, 5.65%.

Here is the definition of "countervailing subsidy," per the International Trade Administration: "Foreign governments subsidize industries when they provide financial assistance to benefit the production, manufacture, or exportation of goods. Subsidies can take many forms, such as direct cash payments, credits against taxes, and loans at terms that do not reflect market conditions. The statute and regulations establish standards for determining when an unfair subsidy has been conferred. The amount of subsidies the foreign producer receives from the government is the basis for the subsidy rate by which the subsidy is offset, or 'countervailed,' through higher import duties."

The original CVD order on OTR tires from China was published on Sept. 4, 2008. On Aug. 1, 2013, the DOC initiated a sunset review of the order, pursuant to section 751(c) of the Tariff Act of 1930. The DOC received a response from Titan Tire Corp., but no substantive responses from the Chinese government and "respondent interested parties."

For more information, click Federal Register, Volume 78, Number 245.

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