Trade Alert: U.S. Industry Files Antidumping Duty Petition on Truck and Bus Tires from Thailand

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On October 17, 2023, the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (“Petitioner”) submitted a petition (“Petition”) to the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“ITC” or “Commission”) for the imposition of antidumping duties (“ADD”) on bus and truck tires from Thailand. The Petition asserts that imports of truck and bus tires from Thailand are being “dumped” (i.e., sold for less than fair value) in the United States and injuring U.S. domestic industry. To offset the alleged dumping, Petitioner requests that the U.S. impose ADD on products within the scope of the Petition.

U.S. industries may petition the U.S. government for relief from imports that are dumped in the U.S. Commerce and ITC play distinct roles in ADD investigations. Commerce determines whether the dumping exists and, if so, determines the margin of dumping. The ITC, in contrast, determines whether there is “material injury,” or the threat of material injury, to U.S. domestic industry as a result of the dumped imports. ADD may be assessed on the subject imports as the result of an ADD investigation if (1) the ITC makes an affirmative determination of injury, and (2) if Commerce makes an affirmative determination of dumping.

Proposed Scope of the Investigation

Per the Petition, the proposed scope of the investigation is as follows:

Truck and bus tires are new pneumatic tires, of rubber, with a truck or bus size designation. Truck and bus tires covered by the scope may be tube-type, tubeless, radial, or non-radial.

Subject tires have, at the time of importation, the symbol “DOT” on the sidewall, certifying that the tire conforms to applicable motor vehicle safety standards. Subject tires may also have one of the following suffixes in their tire size designation, which also appear on the sidewall of the tire:

TR—Identifies tires for service on trucks or buses to differentiate them from similarly sized passenger car and light truck tires; and

HC—Identifies a 17.5 inch rim diameter code for use on low platform trailers.

All tires with a ‘‘TR’’ or ‘‘HC’’ suffix in their size designations are covered by the scope regardless of their intended use.

In addition, all tires that lack one of the above suffix markings are included in the scope, as well as all tires that include any other prefix or suffix in their sidewall markings, are included in the scope, regardless of their intended use, as long as the tire is of a size that fits trucks or busses. Sizes that fit trucks and busses include, but are not limited to, the numerical size designations listed in the “Truck-Bus” section of the Tire and Rim Association Year Book, as updated annually. The scope includes all tires that are of a size that fits trucks or busses, unless the tire falls within one of the specific exclusions set out below.

Truck and bus tires, whether or not mounted on wheels or rims, are included in the scope. However, if a subject tire is imported mounted on a wheel or rim, only the tire is covered by the scope. Subject merchandise includes truck and bus tires produced in the subject country whether mounted on wheels or rims in the subject country or in a third country. Truck and bus tires are covered whether or not they are accompanied by other parts, e.g., a wheel, rim, axle parts, bolts, nuts, etc. Truck and bus tires that enter attached to a vehicle are not covered by the scope.

Specifically excluded from the scope are the following types of tires: (1) Pneumatic tires, of rubber, that are not new, including recycled and retreaded tires; (2) nonpneumatic tires, such as solid rubber tires; and (3) tires that exhibit each of the following physical characteristics: (a) The designation “MH” is molded into the tire’s sidewall as part of the size designation; (b) the tire incorporates a warning, prominently molded on the sidewall, that the tire is for “Mobile Home Use Only;” and (c) the tire is of bias construction as evidenced by the fact that the construction code included in the size designation molded into the tire’s sidewall is not the letter “R.”

The subject merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 4011.20.1015 and 4011.20.5020. Tires meeting the scope description may also enter under the following HTSUS subheadings: 4011.69.0020, 4011.69.0090, 4011.70.00, 4011.90.80, 4011.99.4520, 4011.99.4590, 4011.99.8520, 4011.99.8590, 8708.70.4530, 8708.70.6030, 8708.70.6060, and 8716.90.5059.

While HTSUS subheadings are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive.

Alleged Dumping Margin

The Petition alleges that truck and bus tires imported from Thailand are being dumped at an estimated margin of 47.81%.

Important (Estimated) Dates & Deadlines

  • October 17, 2023 – Petition filed

  • November 6, 2023 – Commerce initiates investigations

  • November 7, 2023 – Date of ITC staff conference

  • November 13, 2023 – Deadline for written submissions to ITC

  • December 1, 2023 – Deadline for ITC preliminary determination in ADD investigation

  • March 25, 2024 – Deadline for Commerce preliminary determination (may be extended)

  • June 10, 2024 – Deadline for Commerce final determination, if deadline is not extended

  • July 23, 2024 – Deadline for ITC Final Determination, if Commerce deadline is not extended

 

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Businesses, including U.S. importers and foreign producers and exporters, that may be affected by this investigation should stay abreast of the latest developments and take note of the key dates and deadlines listed above.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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