Kenda will limit impact of duties, says Yang
Two tire companies affected by the U.S. Department of Commerce’s recent decision to re-calculate anti-dumping and countervailing duty rates on consumer tires imported from China have responded to Modern Tire Dealer's request for comments.
(For more information on the decision, see "DOC affirms tariffs, increases rates for nearly all tire makers.")
Six companies previously had made official comments -- or "no comments" -- on the decision (see "One manufacturer's tariff reaction: 'stunned'"). Here are two more.
"We are not totally surprised with this conclusion... this is consistent from the preliminary finding by the Department of Commerce (DOT) in November of 2014 and in February of 2015," says Jimmy Yang, president of American Kenda Rubber Industrial Co. Ltd. "However, (the DOT) did revise the countervailing duty to be at a much higher percentage than the preliminary finding, plus they have stated that “critical circumstances” have been discovered in the countervailing duty investigation; therefore, Customs will now collect countervailing duties retroactive to 9/2/2014 through 12/1/2014 at higher countervailing duty determinations. This could affect cash flow to all of the importers of Chinese tires.
“The result on this decision will have some impact to Kenda, as we have imported tires from our Chinese factory. We are currently examining the market situation very carefully and re-evaluating our production strategy to minimize this impact and to maintain our aggressive growth pattern. We are very committed to keeping our distributors fully supported from both supply and competiveness aspects!"
Jason Rothstein, general manager of North America for Aeolus Tyre Co. Ltd., said it is too early to comment on what may not be the final decision. Once the International Trade Commission makes its final decision on July 27, 2015, Aeolus will be able to share its perspective "in detail."