Petition Summary: Passenger Vehicle And Light Truck Tires From Korea, Taiwan, Thailand, And Vietnam

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On May 13, 2020, United Steel, Paper and Foresty, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (“Petitioners”), filed a petition for the imposition of antidumping duties on passenger vehicle and light truck tires (“PVLT tires”) from Korea, Taiwan, Thailand, and Vietnam. In addition, the petition alleges that imports of PVLT tires from Vietnam are unfairly subsidized and requests the imposition of countervailing duties.

SCOPE OF THE INVESTIGATION

The scope of these investigations is passenger vehicle and light truck tires. Passenger vehicle and light truck tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. Tires covered by these orders may be tube-type, tubeless, radial, or nonradial, and they may be intended for sale to original equipment manufacturers or the replacement market.

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 the following prefixes or suffix in their tire size designation, which also appears on the sidewall of the tire:

Prefix designations:

  • P – Identifies a tire intended primarily for service on passenger cars.
  • LT – Identifies a tire intended primarily for service on light trucks.

Suffix letter designations:

  • LT – Identifies light truck tires for service on trucks, buses, trailers, and multipurpose passenger vehicles used in nominal highway service.

All tires with a “P” or “LT” prefix, and all tires with an “LT” suffix in their sidewall markings are covered by this investigation regardless of their intended use.

In addition, all tires that lack a “P” or “LT” prefix or suffix in their sidewall markings, 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 passenger cars or light trucks. Sizes that fit passenger cars and light trucks include, but are not limited to, the numerical size designations listed in the passenger car section or light truck section of the Tire and Rim Association Year Book, as updated annually. The scope includes all tires that are of a size that fits passenger cars or light trucks, unless the tire falls within one of the specific exclusions set out below.

Passenger vehicle and light truck tires, whether or not attached to wheels or rims, are included in the scope. However, if a subject tire is imported attached to a wheel or rim, only the tire is covered by the scope.

Specifically excluded from the scope are the following types of tires:

(1) Racing car tires; such tires do not bear the symbol “DOT” on the sidewall and may be marked with “ZR” in size designation;

(2) pneumatic tires, of rubber, that are not new, including recycled and retreaded tires;

(3) non-pneumatic tires, such as solid rubber tires;

(4) tires designed and marketed exclusively as temporary use spare tires for passenger vehicles which, in addition, exhibit each of the following physical characteristics:

  • The size designation and load index combination molded on the tire’s sidewall are listed in Table PCT–1B (“T” Type Spare Tires for Temporary Use on Passenger Vehicles) or PCT-1B (“T” Type Diagonal (Bias) Spare Tires for Temporary Use on Passenger Vehicles) of the Tire and Rim Association Year Book,
  • the designation “T” is molded into the tire’s sidewall as part of the size designation, and,
  • the tire’s speed rating is molded on the sidewall, indicating the rated speed in MPH or a letter rating as listed by Tire and Rim Association Year Book, and the rated speed is 81 MPH or a “M” rating;

(5) tires designed and marketed exclusively for specialty tire (ST) use which, in addition, exhibit each of the following conditions:

  • The size designation molded on the tire’s sidewall is listed in the ST sections of the Tire and Rim Association Year Book,
  • the designation “ST” is molded into the tire’s sidewall as part of the size designation,
  • the tire incorporates a warning, prominently molded on the sidewall, that the tire is “For Trailer Service Only” or “For Trailer Use Only”,
  • the load index molded on the tire’s sidewall meets or exceeds those load indexes listed in the Tire and Rim Association Year Book for the relevant ST tire size, and
  • either

(i) the tire’s speed rating is molded on the sidewall, indicating the rated speed in MPH or a letter rating as listed by Tire and Rim Association Year Book, and the rated speed does not exceed 81 MPH or an “M” rating; or

(ii) the tire’s speed rating molded on the sidewall is 87 MPH or an “N” rating, and in either case the tire’s maximum pressure and maximum load limit are molded on the sidewall and either

(1) both exceed the maximum pressure and maximum load limit for any tire of the same size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book; or

(2) if the maximum cold inflation pressure molded on the tire is less than any cold inflation pressure listed for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book, the maximum load limit molded on the tire is higher than the maximum load limit listed at that cold inflation pressure for that size designation in either the passenger car or light truck section of the Tire and Rim Association Year Book;

(6) tires designed and marketed exclusively for off-road use and which, in addition, exhibit each of the following physical characteristics:

  • The size designation and load index combination molded on the tire’s sidewall are listed in the off-the-road, agricultural, industrial or ATV section of the Tire and Rim Association Year Book,
  • in addition to any size designation markings, the tire incorporates a warning, prominently molded on the sidewall, that the tire is “Not For Highway Service” or “Not for Highway Use”,
  • the tire’s speed rating is molded on the sidewall, indicating the rated speed in MPH or a letter rating as listed by the Tire and Rim Association Year Book, and the rated speed does not exceed 55 MPH or a “G” rating, and
  • the tire features a recognizable off-road tread design.

The products covered by these investigations are currently classified under the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10. Tires meeting the scope description may also enter under the following HTSUS subheadings: 4011.90.10.10, 4011.90.10.50, 4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.80, 8708.70.60.30, 8708.70.60.45, and 8708.70.60.60. While HTSUS subheadings are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive.

PETITIONER

United Steelworkers

60 Boulevard of the Allies

Pittsburgh, PA 15222

(412) 562-2400

Kevin Johnsen

kjohnsen@usw.org

 

COUNSEL FOR PETITIONERS

Roger B. Schagrin

SCHAGRIN ASSOCIATES

900 Seventh Street NW

Washington, D.C. 20001

(202) 223-1700

 

NAMED PRODUCERS/EXPORTERS

For a list of foreign products/exporters alleged by Petitioner, please see Attachment I .

 

NAMED IMPORTERS

For a list of importers alleged by Petitioner, please see Attachment II.

ESTIMATED SCHEDULE

Event Earliest Date
Petition Filed May 13, 2020
DOC Initiation June 2, 2020
   
ITC Preliminary Investigation:  
Questionnaires Due May 27, 2020
Request to appear at hearing June 1, 2020
Hearing June 3, 2020
Briefs June 8, 2020
ITC Vote June 29, 2020
   
DOC Investigation Schedule:  
DOC Preliminary Antidumping Determination October 20, 2020
DOC Preliminary Countervailing Determination August 6, 2020
DOC Final Antidumping Determination January 3, 2021
DOC Final Countervailing Determination October 20, 2020
ITC Final AD Determination February 17, 2021
ITC Final CVD Determination December 4, 2020

 

ALLEGED DUMPING MARGINS

Korea: 42.95% – 195.20%

Taiwan: 21% – 147%

Thailand: 106.4% – 217.5%

Vietnam: 14.73% – 33.06%

 

ALLEGED SUBSIDIES

For a list of alleged countervailing duty programs, please see Attachment III .

 

IMPORTS OF SUBJECT MERCHANDISE

--> Scroll to see full table data
  2017 2018 2019 Jan-Mar 2019 Jan-Mar 2020
Korea          
Quantity(Tires) 18,571,996 19,376,192 19,129,118 5,248,480 4,307,609
Value ($) 1,248,266,665 1,293,011,196 1,278,041,280 355,065,989 273,703,374
AUV ($/Tires) 67.21 66.73 66.81 67.65 63.54
           
Taiwan          
Quantity(Tires) 8,930,021 8,351,871 8,810,074 2,086,942 2,431,889
Value ($) 387,797,596 375,793,120 410,788,862 94,793,507 112,788,730
AUV ($/Tires) 43.43 45.00 46.63 45.42 46.38
           
Thailand          
Quantity(Tires) 34,905,034 40,637,158 45,244,734 11,040,500 10,912,647
Value ($) 1,562,623,090 1,906,918,331 2,177,046,358 524,338,648 549,486,542
AUV ($/Tires) 44.77 46.93 48.12 47.49 50.35
           
Vietnam          
Quantity(Tires) 8,742,260 10,668,980 12,121,744 2,784,102 3,115,180
Value ($) 397,425,339 463,101,341 525,186,964 122,660,294 135,262,574
AUV ($/Tires) 45.46 43.41 43.33 44.06 43.42
           
--> Scroll to see full table data

 

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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