[Federal Register Volume 76, Number 80 (Tuesday, April 26, 2011)]
[Notices]
[Pages 23286-23288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9969]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-913]


New Pneumatic Off-the-Road Tires From the People's Republic of 
China: Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has conducted an 
administrative review of Hebei Starbright Tire Co., Ltd. (Starbright) 
under the countervailing duty order on certain new pneumatic off-the-
road tires (OTR Tires) from the People's Republic of China (PRC) for 
the period December 17, 2007, through December 31, 2008. Following the 
preliminary results, we received comments from Starbright, Titan Tire 
Corporation (Titan), the petitioner in the original investigation, and 
Bridgestone Americas, Inc. and Bridgestone Americas Tire Operations, 
LLC (collectively Bridgestone), a domestic interested party in the 
original investigation. Based on our analysis of the comments, we have 
determined that no changes should be made in these final results. We 
determine that subsidies are being provided to Starbright for the 
production and export of OTR Tires from the PRC. The subsidy rate is 
set forth in the Final Results of Review section below.

DATES: Effective Date: April 26, 2011.

FOR FURTHER INFORMATION CONTACT: Andrew Huston or Jun Jack Zhao, AD/CVD 
Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4261 and (202) 482-1396, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The following events have occurred since the publication of the 
preliminary results of this review. See New Pneumatic Off-the-Road 
Tires From the People's Republic of China: Preliminary Results of 
Countervailing Duty Administrative Review, 75 FR 64268 (October 19, 
2010) (Preliminary Results). On November 18, 2010, the Department 
received case briefs from Starbright and Titan. On November 23, 2010, 
the Department received rebuttal briefs from Starbright, Titan and 
Bridgestone.

Period of Review

    The period of review (POR) for which we are measuring subsidies is 
December 17, 2007, through December 31, 2008. Since there are only 15 
days of 2007 entries covered in the review, the Department 
preliminarily decided to calculate a single rate for subsidies received 
in calendar year 2008, and apply this rate to entries made from 
December 17, 2007, through December 31, 2007, in addition to all of 
2008, for assessment purposes. See Preliminary Results, 75 FR at 64271. 
Since we did not receive any comments on this approach, we are not 
changing it in these final results.

Scope of the Order

    The products covered by the scope of the order are new pneumatic 
tires designed for off-the-road (OTR) and off-highway use, subject to 
exceptions identified below. Certain OTR tires are generally designed, 
manufactured and offered for sale for use on off-road or off-highway 
surfaces, including but not limited to, agricultural fields, forests, 
construction sites, factory and warehouse interiors, airport tarmacs,

[[Page 23287]]

ports and harbors, mines, quarries, gravel yards, and steel mills. The 
vehicles and equipment for which certain OTR tires are designed for use 
include, but are not limited to: (1) Agricultural and forestry vehicles 
and equipment, including agricultural tractors,\1\ combine 
harvesters,\2\ agricultural high clearance sprayers,\3\ industrial 
tractors,\4\ log-skidders,\5\ agricultural implements, highway-towed 
implements, agricultural logging, and agricultural, industrial, skid-
steers/mini-loaders;\6\ (2) construction vehicles and equipment, 
including earthmover articulated dump products, rigid frame haul 
trucks,\7\ front end loaders,\8\ dozers,\9\ lift trucks, straddle 
carriers,\10\ graders,\11\ mobile cranes,\12\ compactors; and (3) 
industrial vehicles and equipment, including smooth floor, industrial, 
mining, counterbalanced lift trucks, industrial and mining vehicles 
other than smooth floor, skid-steers/mini-loaders, and smooth floor 
off-the-road counterbalanced lift trucks.\13\ The foregoing list of 
vehicles and equipment generally have in common that they are used for 
hauling, towing, lifting, and/or loading a wide variety of equipment 
and materials in agricultural, construction and industrial settings. 
Such vehicles and equipment, and the descriptions contained in the 
footnotes are illustrative of the types of vehicles and equipment that 
use certain OTR tires, but are not necessarily all-inclusive. While the 
physical characteristics of certain OTR tires will vary depending on 
the specific applications and conditions for which the tires are 
designed (e.g., tread pattern and depth), all of the tires within the 
scope have in common that they are designed for off-road and off-
highway use. Except as discussed below, OTR tires included in the scope 
of the proceeding range in size (rim diameter) generally but not 
exclusively from 8 inches to 54 inches. The tires may be either tube-
type\14\ or tubeless, radial or non-radial, and intended for sale 
either to original equipment manufacturers or the replacement market. 
The subject merchandise is currently classifiable under Harmonized 
Tariff Schedule of the United States (HTSUS) subheadings: 
4011.20.10.25, 4011.20.10.35, 4011.20.50.30, 4011.20.50.50, 
4011.61.00.00, 4011.62.00.00, 4011.63.00.00, 4011.69.00.00, 
4011.92.00.00, 4011.93.40.00, 4011.93.80.00, 4011.94.40.00, and 
4011.94.80.00. While HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the scope is dispositive.
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    \1\ Agricultural tractors are dual-axle vehicles that typically 
are designed to pull farming equipment in the field and that may 
have front tires of a different size than the rear tires.
    \2\ Combine harvesters are used to harvest crops such as corn or 
wheat.
    \3\ Agricultural sprayers are used to irrigate agricultural 
fields.
    \4\ Industrial tractors are dual-axle vehicles that typically 
are designed to pull industrial equipment and that may have front 
tires of a different size than the rear tires.
    \5\ A log-skidder has a grappling lift arm that is used to 
grasp, lift and move trees that have been cut down to a truck or 
trailer for transport to a mill or other destination.
    \6\ Skid-steer loaders are four-wheel drive vehicles with the 
left-side drive wheels independent of the right-side drive wheels 
and lift arms that lie alongside the driver with the major pivot 
points behind the driver's shoulders. Skid-steer loaders are used in 
agricultural, construction and industrial settings.
    \7\ Haul trucks, which may be either rigid frame or articulated 
(i.e., able to bend in the middle) are typically used in mines, 
quarries and construction sites to haul soil, aggregate, mined ore, 
or debris.
    \8\ Front loaders have lift arms in front of the vehicle. They 
can scrape material from one location to another, carry material in 
their buckets, or load material into a truck or trailer.
    \9\ A dozer is a large four-wheeled vehicle with a dozer blade 
that is used to push large quantities of soil, sand, rubble, etc., 
typically around construction sites. They can also be used to 
perform ``rough grading'' in road construction.
    \10\ A straddle carrier is a rigid frame, engine-powered machine 
that is used to load and offload containers from container vessels 
and load them onto (or off of) tractor trailers.
    \11\ A grader is a vehicle with a large blade used to create a 
flat surface. Graders are typically used to perform ``finish 
grading.'' Graders are commonly used in maintenance of unpaved roads 
and road construction to prepare the base course onto which asphalt 
or other paving material will be laid.
    \12\ i.e., ``on-site'' mobile cranes designed for off-highway 
use.
    \13\ A counterbalanced lift truck is a rigid framed, engine-
powered machine with lift arms that has additional weight 
incorporated into the back of the machine to offset or 
counterbalance the weight of loads that it lifts so as to prevent 
the vehicle from overturning. An example of a counterbalanced lift 
truck is a counterbalanced fork lift truck. Counterbalanced lift 
trucks may be designed for use on smooth floor surfaces, such as a 
factory or warehouse, or other surfaces, such as construction sites, 
mines, etc.
    \14\ While tube-type tires are subject to the scope of this 
proceeding, tubes and flaps are not subject merchandise and 
therefore are not covered by the scope of this proceeding, 
regardless of the manner in which they are sold (e.g. sold with or 
separately from subject merchandise).
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    Specifically excluded from the scope are new pneumatic tires 
designed, manufactured and offered for sale primarily for on-highway or 
on-road use, including passenger cars, race cars, station wagons, sport 
utility vehicles, minivans, mobile homes, motorcycles, bicycles, on-
road or on-highway trailers, light trucks, and trucks and buses. Such 
tires generally have in common that the symbol ``DOT'' must appear on 
the sidewall, certifying that the tire conforms to applicable motor 
vehicle safety standards. Such excluded tires may also have the 
following designations that are used by the Tire and Rim Association:
    Prefix letter designations:
    <bullet> P--Identifies a tire intended primarily for service on 
passenger cars;
    <bullet> LT--Identifies a tire intended primarily for service on 
light trucks; and,
    <bullet> ST--Identifies a special tire for trailers in highway 
service.
    Suffix letter designations:
    <bullet> TR--Identifies a tire for service on trucks, buses, and 
other vehicles with rims having specified rim diameter of nominal plus 
0.156'' or plus 0.250'';
    <bullet> MH--Identifies tires for Mobile Homes;
    <bullet> HC--Identifies a heavy duty tire designated for use on 
``HC'' 15'' tapered rims used on trucks, buses, and other vehicles. 
This suffix is intended to differentiate among tires for light trucks, 
and other vehicles or other services, which use a similar designation.
    <bullet> Example: 8R17.5 LT, 8R17.5 HC;
    <bullet> LT--Identifies light truck tires for service on trucks, 
buses, trailers, and multipurpose passenger vehicles used in nominal 
highway service; and
    <bullet> MC--Identifies tires and rims for motorcycles.
    The following types of tires are also excluded from the scope: 
pneumatic tires that are not new, including recycled or retreaded tires 
and used tires; non-pneumatic tires, including solid rubber tires; 
tires of a kind designed for use on aircraft, all-terrain vehicles, and 
vehicles for turf, lawn and garden, golf and trailer applications. Also 
excluded from the scope are radial and bias tires of a kind designed 
for use in mining and construction vehicles and equipment that have a 
rim diameter equal to or exceeding 39 inches. Such tires may be 
distinguished from other tires of similar size by the number of plies 
that the construction and mining tires contain (minimum of 16) and the 
weight of such tires (minimum 1500 pounds).

Application of Facts Available, Including the Application of Adverse 
Inferences

    For purposes of these final results, we continue to rely on facts 
available and have drawn adverse inferences, in accordance with 
sections 776(a) and (b) of the Tariff Act of 1930, as amended (the 
Act), with regard to Starbright's receipt of countervailable domestic 
subsidies under the provision of rubber, carbon black, and nylon cord 
for less than adequate remuneration programs, and countervailable 
export subsidies under the value added tax and import

[[Page 23288]]

duty exemptions on imported materials program. A full discussion of our 
decision to apply adverse facts available is presented in the 
Preliminary Results in the section ``Application of Facts Available, 
Including the Application of Adverse Inferences,'' which is unaffected 
by these final results. No party commented on our preliminary decision 
to apply facts available with adverse inferences.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Memorandum to Ronald K. 
Lorentzen, Deputy Assistant Secretary for Import Administration, from 
Christian Marsh, Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, entitled ``Issues and Decision 
Memorandum for the Final Results in the Countervailing Duty Review of 
Certain New Pneumatic Off-the-Road Tires from the People's Republic of 
China,'' dated concurrently with this notice (Decision Memorandum). 
Attached to this notice as an Appendix is a list of the issues that 
parties have raised, and to which we have responded in the Decision 
Memorandum. The Decision Memorandum is on file in the Department's 
Central Records Unit (Room 7406 in the main Department of Commerce 
building). In addition, a complete version of the Decision Memorandum 
can be accessed directly on the Internet at http://ia.ita.doc.gov/frn/. 
The paper copy and electronic version of the Decision Memorandum are 
identical in content.

Final Results of Review

    After reviewing comments from all parties, we have made no 
adjustments to our calculations, as explained in our Decision 
Memorandum. Consistent with the Preliminary Results, and in accordance 
with 19 CFR 351.221(b)(5), we have calculated an individual subsidy 
rate for Starbright for the POR. We determine the total countervailable 
subsidy to be 30.87 percent ad valorem.

------------------------------------------------------------------------
                                                            Net subsidy
                  Manufacturer/Exporter                        rate
                                                             (percent)
------------------------------------------------------------------------
Hebei Starbright Tire Co., Ltd..........................           30.87
------------------------------------------------------------------------

Assessment Rates/Cash Deposits

    The Department intends to issue appropriate assessment instructions 
to U.S. Customs and Border Protection (CBP) 15 days after the date of 
publication of these final results of review. The Department will 
instruct CBP to liquidate shipments of subject merchandise by 
Starbright entered, or withdrawn from warehouse, for consumption on or 
after December 17, 2007, through December 31, 2008, at the ad valorem 
rate listed above. Consistent with the requirements of section 703(d) 
of the Act, shipments entered, or withdrawn from warehouse, for 
consumption on or after April 15, 2008, and on or before September 4, 
2008, the period between the expiration of ``provisional measures'' and 
the publication of the final affirmative injury determination of the 
U.S. International Trade Commission, will be liquidated without regard 
to countervailing duties. We will also instruct CBP to collect cash 
deposits for Starbright at the countervailing duty rate indicated above 
on all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of these 
final results of review.
    For all non-reviewed companies, the Department has instructed CBP 
to assess countervailing duties at the cash deposit rates in effect at 
the time of entry, for entries from December 17, 2007, through December 
31, 2008. The cash deposit rates for all companies not covered by this 
review are not changed by the results of this review, and remain in 
effect until further notice.

Return or Destruction of Proprietary Information

    This notice serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return or destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: April 18, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix

List of Comments in the Decision Memorandum

Comment 1 Application of CVD Law to the People's Republic of China, 
and Non-Market Economies
Comment 2 Application of CVD Law and Double Remedies
Comment 3 Application of the CVD Law and the Administrative 
Procedures Act
Comment 4 Starbright's Creditworthiness for 2006
[FR Doc. 2011-9969 Filed 4-25-11; 8:45 am]
BILLING CODE 3510-DS-P