Trade Union Asks for New AD/CV Duties on Car and Truck Tires From China
A trade union representing U.S. tire factory workers on June 3 requested new antidumping and countervailing duties on passenger vehicle and light truck tires from China (A-570-016/C-570-017). The United Steelworkers (USW) union alleges that, since safeguard duties on Chinese tires expired in 2012, dumped and subsidized Chinese tires have flooded the U.S. market and hurt U.S. workers.
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The safeguard duties had been in place for three years, but expired in September 2012 (see 12092421). Since the safeguard expired, annual imports of tires from China rose by over 60 percent, said USW, and the rapid increase is continuing in 2014. Chinese tires have “steadily gained market share entirely at the expense of U.S. producers,” said the trade union. The increase in market share is a result of government subsidization and consistent underselling by Chinese tire exporters, said USW.
Proposed Scope
USW is proposing the following scope for the investigations:
“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. Passenger vehicle and light truck tires are suitable for use on motor cars, including but not limited to sedans, station wagons, sport utility vehicles, minivans, and vans, and for use on on-the-highway light trucks. Tires covered by these investigations may be tube-type, tubeless, radial, or non-radial, 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 car 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 size designations are covered by these investigations regardless of their intended use.
“In addition, the lack of such prefix or suffix designations in a tire's size designation does not indicate that the tire is outside of the scope of these investigations, as there are any tire size designations that lack such prefixes and suffixes that are nonetheless passenger vehicle and light truck tires. A full list of the tire size designations that indicate the tire is a subject passenger vehicle or light truck tire is published in the Tire and Rim Association Year Book and updated annually. Any tire of any size designation listed in the passenger car section or light truck section of the Tire and Rim Association Year Book, as updated annually, is covered by the scope of these investigations, regardless of the tire's intended use, limited only by the specific exceptions set out below.
“Specifically excluded from the scope of these investigations are the following types of tires: (1) racing car tires, defined as tires with a ‘ZR’ appearing in the size designation; (2) new pneumatic tires, of rubber, of a size designation not listed in the passenger car section or light truck section of the Tire and Rim Association Yearbook; (3) pneumatic tires, of rubber, that are not new, including recycled and retreaded tires; and (4) non-pneumatic tires, such as solid rubber tires.
“The products covered by the petitions are currently classified under the following HTSUS subheadings: 4011.10.10, 4011.10.50, 4011.20.10.05, and 4011.20.50.10. While HTSUS subheadings are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive. To the extent that tires that meet the scope description are imported under basket HTS categories such as 4011.99.45 and 4011.99.85, or any other HTS categories not listed above, they are within the scope of these investigations.”
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations on passenger vehicle and light truck tires from China. Comments are due by June 23.
Email ITTNews@warren-news.com for a copy of the petition.