Feds say Chinese companies are dumping OTR tires

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The United States Department of Commerce has ruled that "Chinese exporters of off-the-road tires have received government subsidies and sold at below the cost of production in the U.S."

Department officials say that "exporters from China have sold OTR tires in the U.S. at zero percent to 210.48% less than normal value and received countervailing subsidies of 2.45% to 14%."

The Department of Commerce announced the following in a prepared statement released yesterday, July 8:

"In the (government's anti-dumping) investigation, mandatory respondents Guizhou Tyre Co. Ltd./Guizhou Advance Rubber, Hebei Starbright Tire Co. Ltd., Tianjin United Tire & Rubber International Co. Ltd. and Xuzhou Xugong Tyre Co. Ltd. received final dumping rates of 4.08%, 19.15%, 8.09% and zero percent, respectively.

"Twenty five additional exporters qualified for a separate dumping rate of 9.48%. The China-wide rate of 210.48% will be applied to all other Chinese exporters, for which (the Department of) Commerce also determined that critical circumstances exist.

"In (the government's countervailing duty) investigation, mandatory respondents Hebei Starbright Tire Co. Ltd., Guizhou Tyre Co. Ltd. and Tianjin United Tire & Rubber International Co. Ltd. received net subsidy rates of 14%, 2.45% and 6.85%, respectvely. A final net subsidy rate of 5.62% will apply to all other Chinese exporters."

As a result of the anti-dumping investigation, the Department of Commerce will instruct U.S. Customs and Border Protection "to continue to suspend liquidation of entries of OTR tires and collect a cash deposit or bond based on the final rates, except for Xuzhou Zugong Tyre Co., which received a 'de minimis' rate. Suspension of liquidation will only resume for purposes of countervailing duties if the U.S. International Trade Commission (ITC) issues an affirmative finding of injury to domestic (OTR tire) manufacturers."

The ITC is scheduled to issue its final injury determination "on or about Aug. 21, 2008. If the ITC determines that imports from China are injuring -- or threaten injury to -- the domestic industry, (the Department of Commerce) will issue" anti-dumping and countervailing duty orders.

"If the ITC makes a negative injury determination, these investigations will be terminated."

The government defines dumping as "when a foreign company sells a product in the U.S. at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture or exportation of goods."

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