Giti is 'very disappointed' in tariff decision
Giti Tire (USA) Ltd. says it is "very disappointed" by the June 12, 2015, tariff calculations, and points to the ongoing construction of a $560 million manufacturing facility in South Carolina as proof of its commitment to the U.S. market.
Here is the company's response to the U.S. Department of Commerce's (DOC) decision in full:
"Giti Tire officials said they were very disappointed by the Department of Commerce’s announcement of its final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of passenger vehicle and light truck tires from China.
"The final AD Margin of 14.54 percent and the final CVD Margin of 36.79 percent announced by the DOC on June 12, is more than double the amount of the preliminary decisions announced earlier by the DOC.
"The duties are still subject to a final decision by the U.S. International Trade Commission, which is due in July. Once the USITC announces its decision, Giti Tire will formulate a course of action in response.
"A private company totally committed to free-market practices, Giti Tire has grown to become the world’s 10th largest tire manufacturer due to world-class research and development, quality manufacturing practices and fair competition in the highly competitive global tire arena.
"Giti Tire has demonstrated a substantial long-term commitment to the U.S. market, its customers, the American consumer and its American workforce. In February, the company broke ground on a passenger and light truck tire manufacturing facility in South Carolina to serve the U.S. market. A $560 million investment by Giti Tire, the plant will create 1,700 jobs in South Carolina."
Editor's note: Giti's statement references the cash deposits the company will pay on passenger and light truck tires it imports from China. Giti actually was assessed a 29.97% anti-dumping duty and a 37.20% countervailing duty.
However, the DOC is offsetting those duty rates by the amount of export and estimated domestic subsidies. Thus, Giti's 29.97% anti-dumping duty was lowered to 14.54%, and its 37.20% countervailing duty was lowered to 36.79%. The DOC made similar adjustments for all other companies' cash deposit rates as well.
To review MTD's full coverage of the DOC's final rulings, including what other tire manufacturers have had to say, read: