The U.S. Department of Commerce has completed its first review of the 2015 tariffs on passenger and light truck tires imported from China. The result: lower rates — but not for everybody.

The biggest drops are in the anti-dumping tariffs, indicating fewer tires are being dumped at less-than-fair-value prices in the U.S. As an example, the anti-dumping rate for Giti Tire Global Trading Pte. Ltd. (and its related companies) dropped from 30.74% to 1.50%. Giti’s countervailing rate (which reflects the subsidies a company received from the Chinese government) also fell, from 36.79% to 20.68%.

Combined, that means Giti's tariff rate has gone from 67.53% to 22.18%.

Here’s a couple more examples of how the rates have changed:

In the countervailing case, Cooper (Kunshan) Tire Co. Ltd.’s rate was 20.73%. It’s dropped to 16.16%

In the anti-dumping case, Qingdao Sentury Tire Co. Ltd.’s rate was 25.84%. It’s now 4.41%

Why a review?

Reviews are a regular part of the tariff process. The government sets a timeline, chooses companies to serve as “mandatory respondents,” and then those companies offer evidence to show how their products are bought, sold and imported into the U.S. Other importers and manufacturers can also supply information. The benefit of being involved is that it might earn the company it's own rate, rather than being lumped in an "everybody else" category. That group typically has had to pay the most.

All of the information, along with government data, then is compiled and considered as part of the review.

The reviews, just like the original tariff investigations, are handled in two parts. One covers the dumping of products in the U.S. market at too-low price points; the other studies whether companies received government subsidies.

Anti-dumping tariff

In the anti-dumping investigation, the DOC looked at tire imports from China from Jan. 27, 2015, through July 31, 2016. After reviewing data from that period, these are the anti-dumping tariffs the DOC says the specified companies need to pay from this date forward:

Giti Tire Global Trading Pte. Ltd. (and its many related businesses, including Giti Tire (USA) Ltd.) 1.50%

Qingdao Sentury Tire Co. Ltd. (includes Sentury Tire USA Inc.) 4.41%

Actyon Tyre Resources Co., Ltd. 2.96

Shandong Anchi Tyres Co. Ltd. 2.96

Briway Tire Co. Ltd. 2.96

Shandong Changfeng Tyres Co. Ltd. 2.96

Qingdao Crown Chemical Co. Ltd. 2.96

Crown International Corp. 2.96

Qingzhou Detai International Trading Co. Ltd. 2.96

Shandong Duratti Rubber Corporation Co. Ltd. 2.96

Shouguang Firemax Tyre Co. Ltd. 2.96

Fleming Ltd. 2.96

Qingdao Fullrun Tyre Corp. Ltd. 2.96

Qingdao Fullrun Tyre Tech Corp. Ltd. 2.96

Guangrao Taihua International Trade Co. Ltd. 2.96

Shandong Guofeng Rubber Plastics Co. Ltd. 2.96

Hankook Tire China Co. Ltd. 2.96

Haohua Orient International Trade Ltd. 2.96

Shandong Hengyu Science & Technology Co. Ltd. 2.96

Hongkong Tiancheng Investment & Trading Co., Ltd.2.96

Hongtyre Group Co. 2.96

Jiangsu Hankook Tire Co. Ltd. 2.96

Jinyu International Holding Co. Ltd. 2.96

Qingdao Jinhaoyang International Co. Ltd. 2.96

Jilin Jixing Tire Co. Ltd. 2.96

Kenda Rubber (China) Co. Ltd. 2.96

Qingdao Keter International Co. Ltd. 2.96

Koryo International Industrial Ltd. 2.96

Kumho Tire Co. Inc. 2.96

Qingdao Lakesea Tyre Co. Ltd. 2.96

Liaoning Permanent Tyre Co. Ltd. 2.96

Shandong Longyue Rubber Co. Ltd. 2.96

Macho Tire Corporation Ltd. 2.96

Maxon Int’l Co. Ltd. 2.96

Mayrun Tyre (Hong Kong) Ltd. 2.96

Qingdao Nama Industrial Co. Ltd. 2.96

Nankang (Zhangjiagang Free Trade Zone) Rubber Industrial Co. Ltd. 2.96

Shandong New Continent Tire Co.  Ltd. 2.96

Qingdao Odyking Tyre Co. Ltd. 2.96

Prinx Chengshan (Shandong) Tire Co. Ltd. 2.96

Riversun Industry Ltd. 2.96

Roadclaw Tyre (Hong Kong) Ltd. 2.96

Safe & Well (HK) International Trading Ltd. 2.96

Sailun Jinyu Group Co. Ltd. 2.96

Sailun Jinyu Group (Hong Kong) Co. Ltd. 2.96

Shandong Jinyu Industrial Co. Ltd. 2.96

Sailun Tire International Corp. 2.96

Seatex International Inc. 2.96

Dynamic Tire Corp. 2.96 Husky Tire Corp. 2.96

Shandong Province Sanli Tire Manufactured Co. Ltd. 2.96

Shandong Linglong Tyre Co. Ltd. 2.96

Shandong Yonking Rubber Co. Ltd. 2.96

Shandong Shuangwang Rubber Co. Ltd. 2.96

Shengtai Group Co. Ltd. 2.96

Techking Tires Ltd. 2.96

Triangle Tyre Co. Ltd. 2.96

 Tyrechamp Group Co. Ltd. 2.96

Shandong Wanda Boto Tyre Co. Ltd. 2.96

Windforce Tyre Co. Ltd. 2.96

Winrun Tyre Co. Ltd. 2.96

Shandong Yongtai Group Co. Ltd. 2.96

Weihai Zhongwei Rubber Co. Ltd. 2.96

Shandong Zhongyi Rubber Co. Ltd. 2.96

Zhaoqing Junhong Co. Ltd. 2.96

*Companies that the DOC determined weren’t eligible for their own stated rate will be charged the existing China-wide rate, which is 76.46%.

Countervailing tariff

The review of whether tire manufacturers received government subsidies covered the period from Dec. 1, 2014 through Dec. 31, 2015. After reviewing import information from that timeframe, the DOC imposed these countervailing rates:

Giti Tire Global Trading Ptd. Ltd. (and its many related businesses, including Giti Tire (USA) Ltd.) 20.68%

Cooper (Kunshan) Tire Co. Ltd. 16.16%

Zhongce Rubber Group Co. Ltd. (ZC Rubber) 119.46%

Non-selected companies under review** (see full list below) 19.13%

The effect of the rate change

There’s one other important thing that happens when these rates are adjusted during reviews. While these new rates are used going forward, they’re also the rates the companies should have been charged during the specified periods. And that means, at least in this instance when the rates have dropped, the companies are owed refunds from the U.S. Customs and Border Protection.

And in case you’re wondering, if the review had resulted in higher rates, yes, the companies would be billed the difference.

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**The DOC identified 41 companies in this category. They are:

American Pacific Industries Inc.

BC Tyre Group Ltd.

Crown International Corp.

Fleming Ltd.

Guangrao Taihua International Trade Co. Ltd.

Haohua Orient International Trade Ltd.

Hong Kong Tiancheng Investment & Trading Co. Ltd.

Jilin Jixing Tire Co. Ltd.

Kenda Rubber (China) Co. Ltd.

Liaoning Permanent Tyre Co. Ltd.

Macho Tire Corp. Ltd.

Maxon Int’l Co. Ltd.

Qingdao Crown Chemical Co. Ltd.

Qingdao Goalstar Tire Co. Ltd.

Qingdao Keter International Co. Ltd.

Qingdao Lakesea Tyre Co. Ltd.

Qingdao Nama Industrial Co. Ltd.

Qingdao Odyking Tyre Co. Ltd.

Qingdao Sentury Tire Co. Ltd.

Qingzhou Detai International Trading Co. Ltd.

Riversun Industry Ltd.

Safe&Well (HK) International Trading Ltd.

Shandong Anchi Tyres Co. Ltd.

Shandong Changhong Rubber Technology Co. Ltd.

Shandong Guofeng Rubber Plastics Co. Ltd.

Shandong Haohua Tire Co. Ltd.

Shandong Hawk International Rubber Industry Co. Ltd.

Shandong Hengyu Science & Technology Co. Ltd.

Shandong Linglong Tyre Co. Ltd.

Shandong Longyue Rubber Co. Ltd.

Shandong New Continent Tire Co. Ltd.

Shandong Province Sanli Tire Manufactured Co. Ltd.

Shandong Yongtai Group Co., Ltd. (formerly known as Shandong Yongtai Chemical Co. Ltd.)

Shandong Zhongyi Rubber Co. Ltd.

Shangong Shuangwang Rubber Co. Ltd.

Shengtai Group Co. Ltd.

Shouguang Firemax Tyre Co. Ltd.

Southeast Mariner International Co. Ltd.

Tyrechamp Group Co. Ltd.

Windforce Tyre Co. Ltd.

Zhaoqing Junhong Co. Ltd.

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