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Four OTR Tire Makers Are Challenging Tariffs in Court

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Four off-the-road tire manufacturers are contesting the tariffs imposed on tires imported from China. And it’s possible more will join the fight.

Each of the four tire companies has filed a complaint with the U.S. Court of International Trade protesting the anti-dumping tariff rates that were published in the Federal Register on April 20, 2016.

The four manufacturers are:

Qingdao Qihang Tyre Co Ltd.,

Qingdao Free Trade Zone Full-World International Trading Co. Ltd., (Full-World)

Trelleborg Wheel Systems (Xingtai) Co. Ltd., and

Xuzhou Xugong Tyres Co. Ltd.

The rates published in April are related to the original OTR tariff imposed in 2008. After tariffs are in place, statute requires a regular review of the case. The Department of Commerce investigates a new set of data, in this case, from Sept. 1, 2013 to Aug. 31, 2014, and makes adjustment to the rates if necessary.

Even though the rates for all four of the companies was lowered, they believe the calculations, or how the calculations were made, are inaccurate.

For example, Full-World asserts its rate of 70.55% is improper because it’s based on an average of the final rates calculated for Qingdao Qihang and Zuzhou Xugong. Likewise, Trelleborg’s complaint is based on the fact the rates of the other companies “are not representative” of its practices.

For at least three of the four companies, the Court of International Trade has agreed to place an injunction on the tariff collection temporarily. The complaint by Xuzhou Xugong was filed on May 5, 2016, so its injunction may still be forthcoming.

It's possible more companies may file their own petitions in court. Statute requires companies to file their objections within 30 days of the notice's publication in the Federal Register. That means the clock started ticking on April 20.

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