There’s been another adjustment to the tariff rates charged on passenger and light truck tires imported from China. The rates, which were lowered in March, have been adjusted downward again.
The latest adjustment, which will become effective May 2, 2018, when the new rates are published in the Federal Register, follows a complaint by Giti Tire Global Trading Pte. Ltd. (and Giti’s associated companies) that the Department of Commerce (DOC) made mathematical errors when calculating the company’s new rates in March.
The DOC acknowledges the errors, and has adjusted Giti’s rate. Because Giti was one of the primary respondents in the review of import data from Dec. 1, 2014, to Dec. 31, 2015, the change in Giti’s rates means the rates of other companies also needs adjustment.
In all cases, the rates have been reduced slightly. Here’s a look at what the countervailing rates were in March, and what they’ll be as of May 2:
|Company||March 2018 rate||May 2, 2018 rate|
|Giti Tire Global Trading Pte. Ltd. (which includes: Giti Tire(USA) Ltd., Giti Radial Tire (Anhui) Ltd.; Giti Tire (Fujian) Co. Ltd.; Giti Tire (Hualin) Co. Ltd.||20.68%||15.75%|
|Cooper (Kunshan) Tire Co. Ltd.||16.16%||15.10%|
|Zhongce Rubber Group Co. Ltd.||119.46%||114.68%|
|Non-selected companies under review||19.13%||15.53%|
These countervailing rates are assessed as a way to offset subsidies the companies receive from the Chinese government. They are in addition to anti-dumping tariffs, which are imposed on companies that “dump” products in the U.S. market for less-than-market prices.
Thus far, the anti-dumping rates that were assessed in March have not changed. Giti must pay a 1.50% anti-dumping tariff; Qingdao Sentury Tire Co. Ltd. (which includes Sentury Tire USA Inc.) is charged 4.41%; and 62 other companies pay a 2.96% anti-dumping tariff. (Find the whole list of those companies here.)