[Federal Register Volume 86, Number 3 (Wednesday, January 6, 2021)]
[Notices]
[Pages 501-504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29299]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-908]


Passenger Vehicle and Light Truck Tires From the Republic of 
Korea: Preliminary Affirmative Determination of Sales at Less Than Fair 
Value, Postponement of Final Determination, and Extension of 
Provisional Measures

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that passenger vehicle and light truck tires (passenger tires) from the 
Republic of Korea (Korea) are being, or are likely to be, sold in the 
United States at less than fair value (LTFV). The period of 
investigation is April 1, 2019, through March 31, 2020. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable January 6, 2021.

FOR FURTHER INFORMATION CONTACT: Elfi Blum or Jun Jack Zhao, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0197 or (202) 482-1396, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on June 29, 
2020.\1\ On October 16, 2020, Commerce postponed the preliminary 
determination of this investigation by 50 days, to December 29, 2020, 
pursuant to section 733(c)(1)(A) of the Act and 19 CFR 351.205(e).\2\ 
For a complete description of the events that followed the initiation 
of this investigation, see the Preliminary Decision Memorandum.\3\ A 
list of topics included in the Preliminary Decision Memorandum is 
included as Appendix II to this notice. The Preliminary Decision 
Memorandum is a public document and is on file electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and the electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Passenger Vehicle and Light Truck Tires from the 
Republic of Korea, Taiwan, Thailand, and the Socialist Republic of 
Vietnam: Initiation of Less-Than-Fair-Value Investigations, 85 FR 
38854 (June 29, 2020) (Initiation Notice).
    \2\ See Passenger Vehicle and Light Truck Tires From the 
Republic of Korea, Taiwan, Thailand, and the Socialist Republic of 
Vietnam: Postponement of Preliminary Determinations in the Less-
Than-Fair-Value Investigations, 85 FR 65791 (October 16, 2020); see 
also Petitioners' Letter, ``Passenger Vehicle and Light Truck Tires 
from the Republic of Korea, Taiwan, Thailand, and the Socialist 
Republic of Vietnam: Petitioner's Request for Extension of 
Preliminary Determination,'' dated October 1, 2020.
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Passenger Vehicle and Light Truck Tires from the Republic of 
Korea,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are passenger tires from 
Korea. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
on the record of this investigation, and accompanying discussion and 
analysis of all comments timely received, see the Preliminary Scope 
Decision Memorandum.\6\ As discussed in the Preliminary Scope Decision 
Memorandum, Commerce is preliminarily modifying the scope language as 
it appeared in the Initiation Notice. See the revised scope in Appendix 
I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 85 FR at 38855.
    \6\ See Memorandum, ``Passenger Vehicle and Light Truck Tires 
from the Republic of Korea, Taiwan, Thailand, and the Socialist 
Republic of Vietnam: Preliminary Scope Comments Decision 
Memorandum,'' dated concurrently with this preliminary determination 
(Preliminary Scope Decision Memorandum).
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    The deadline to submit scope case briefs is established in the 
Preliminary Scope Decision Memorandum. There will be no further 
opportunity for comments on scope-related issues.\7\
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    \7\ Case briefs and rebuttal briefs submitted in response to 
this preliminary LTFV determination should not include scope-related 
issues. See Preliminary Scope Decision Memorandum and the ``Public 
Comment'' section of this notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export price and 
constructed export price in accordance with section 772 of the Act. 
Normal value (NV) is calculated in accordance with section 773 of the 
Act. Furthermore, pursuant to sections 776(a) and (b) of the Act, 
Commerce has preliminarily relied on partial facts otherwise available, 
with adverse inferences, for Hankook Tire & Technology Co. Ltd 
(Hankook).\8\ For a full description of the methodology underlying the 
preliminary determination, see the Preliminary Decision Memorandum.
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    \8\ In its section A questionnaire response, Hankook stated that 
in March 1999, the name Hankook Tire Mfg. Co., Ltd. was changed to 
Hankook Tire Co., Ltd. In May 2019, the name of Hankook Tire Co. 
Ltd. was changed to Hankook Tire & Technology Co. Ltd. Hankook Tire 
America Corp. and Hankook Tire Manufacturing Tennessee, LP, are 
directly and indirectly wholly-owned subsidiaries of Hankook Tire & 
Technology Co. Ltd. See Hankook's Letter, ``Passenger Vehicle and 
Light Truck Tires from the Republic of Korea (A-580-908): Initial 
Section A Questionnaire Response,'' dated September 14, 2020.
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All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act. In this investigation, Commerce calculated estimated weighted-
average dumping margins for Hankook and Nexen that are not zero, de 
minimis, or based entirely on facts otherwise available. Commerce 
calculated the all-others' rate using an average of the estimated 
weighted-average dumping margins calculated for the examined 
respondents weighted by each company's publicly-ranged total

[[Page 502]]

U.S. sale values for the merchandise under consideration.\9\
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    \9\ With two respondents under examination, Commerce normally 
calculates: (A) A weighted-average of the estimated weighted-average 
dumping margins calculated for the examined respondents; (B) a 
simple average of the estimated weighted-average dumping margins 
calculated for the examined respondents; and (C) a weighted-average 
of the estimated weighted-average dumping margins calculated for the 
examined respondents using each company's publicly-ranged U.S. sale 
quantities for the merchandise under consideration. Commerce then 
compares (B) and (C) to (A) and selects the rate closest to (A) as 
the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, please see Commerce's Memorandum ``Preliminary 
Determination of the Less-Than-Fair Value Investigation of Passenger 
Vehicles and Light Truck Tires from Korea: Rate for Non-Examined 
Companies,'' dated concurrently with this FR notice.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Hankook Tire & Technology Co. Ltd (Hankook).................       38.07
Nexen Tire Corporation (Nexen)..............................       14.24
All Others..................................................       27.81
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit for estimated antidumping duties 
equal to the estimated weighted-average dumping margin or the estimated 
all-others rate, as follows: (1) The cash deposit rate for the 
respondents listed above will be equal to the company-specific 
estimated weighted-average dumping margins determined in this 
preliminary determination; (2) if the exporter is not a respondent 
identified above, but the producer is, then the cash deposit rate will 
be equal to the company-specific estimated weighted-average dumping 
margin established for that producer of the subject merchandise; and 
(3) the cash deposit rate for all other producers and exporters will be 
equal to the all-others estimated weighted-average dumping margin.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of such case briefs 
and written comments at a later date. Rebuttal briefs, limited to 
issues raised in case briefs, may be submitted no later than seven days 
after the deadline date for case briefs.\10\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\11\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs in this investigation are encouraged to 
submit with each argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.
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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \11\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date and time of 
the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On December 2 and 9, 2020, Hankook and Nexen, respectively, 
requested that, in the event of an affirmative preliminary 
determination in this investigation, Commerce postpone its final 
determination in accordance with section 735(a)(2)(A) of the Act and 19 
CFR 351.210(b)(2)(ii) and extend the application of the provisional 
measures prescribed under section 733(d) of the Act and 19 CFR 
351.210(e)(2) from a four-month to a six-month period.\12\ In 
accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because: (1) The preliminary

[[Page 503]]

determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination.
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    \12\ See Hankook's Letter, ``Passenger Vehicle and Light Truck 
Tires from the Republic of Korea (A-580-908): Request to Extend the 
Final Determination and Provisional Measures,'' dated December 2, 
2020; and Nexen's Letters, ``Passenger Vehicle and Light Truck Tires 
From South Korea: Request for Postponement of the Final 
Determination,'' dated December 9, 2020.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 after the final determination whether 
these imports are materially injuring, or threaten material injury to, 
the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: December 29, 2020.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

Scope of the Investigation

    The scope of this investigation 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 this investigation 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 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 these 
investigations 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:
    (a) The size designation and load index combination molded on 
the tire's sidewall are listed in Table PCT-1R (``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,
    (b) the designation ``T'' is molded into the tire's sidewall as 
part of the size designation, and,
    (c) 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 as temporary use 
spare tires for light trucks which, in addition, exhibit each of the 
following physical characteristics:
    (a) The tires have a 265/70R17, 255/80R17, 265/70R16, 245/70R17, 
245/75R17, 265/70R18, or 265/70R18 size designation;
    (b) ``Temporary Use Only'' or ``Spare'' is molded into the 
tire's sidewall;
    (c) the tread depth of the tire is no greater than 6.2 mm; and
    (d) Uniform Tire Quality Grade Standards (``UTQG'') ratings are 
not molded into the tire's sidewall with the exception of 265/70R17 
and 255/80R17 which may have UTGC molded on the tire sidewall;
    (6) tires designed and marketed exclusively for specialty tire 
(ST) use which, in addition, exhibit each of the following 
conditions:
    (a) The size designation molded on the tire's sidewall is listed 
in the ST sections of the Tire and Rim Association Year Book,
    (b) the designation ``ST'' is molded into the tire's sidewall as 
part of the size designation,
    (c) the tire incorporates a warning, prominently molded on the 
sidewall, that the tire is ``For Trailer Service Only'' or ``For 
Trailer Use Only'',
    (d) 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
    (e) 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;
    (7) tires designed and marketed exclusively for off-road use and 
which, in addition, exhibit each of the following physical 
characteristics:
    (a) 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,
    (b) 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'',
    (c) 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
    (d) the tire features a recognizable off-road tread design;
    (8) Tires designed and marketed for off-road use as all-terrain-
vehicle (ATV) tires or utility-terrain-vehicle (UTV) tires, and 
which, in addition, exhibit each of the following characteristics:
    (a) 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 87 MPH or an ``N'' rating, and
    (b) both of the following physical characteristics are 
satisfied:
    (i) The size designation and load index combination molded on 
the tire's sidewall does not match any of those listed in the 
passenger car or light truck sections of the Tire and Rim 
Association Year Book, and

[[Page 504]]

    (ii) The size designation and load index combination molded on 
the tire's sidewall matches any of the following size designation 
(American standard or metric) and load index combinations:

------------------------------------------------------------------------
                                                                   Load
       American  standard size                Metric size         index
------------------------------------------------------------------------
26x10R12.............................  254/70R/12..............       72
27x10R14.............................  254/65R/14..............       73
28x10R14.............................  254/70R/14..............       75
28x10R14.............................  254/70R/14..............       86
30X10R14.............................  254/80R/14..............       79
30x10R15.............................  254/75R/15..............       78
30x10R14.............................  254/80R/14..............       90
31x10R14.............................  254/85R/14..............       81
32x10R14.............................  254/90R/14..............       95
32x10R15.............................  254/85R/15..............       83
32x10R15.............................  254/85R/15..............       94
33x10R15.............................  254/90R/15..............       86
33x10R15.............................  254/90R/15..............       95
35x9.50R15...........................  241/105R/15.............       82
35x10R15.............................  254/100R/15.............       97
------------------------------------------------------------------------

    The products covered by this investigation 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, 8708.70.45.60, 
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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope of The Investigation
VI. Scope Comments
VII. Application of Facts Available and Use of Adverse Inference
VIII. Discussion of the Methodology
IX. Currency Conversion
X. Recommendation

[FR Doc. 2020-29299 Filed 1-5-21; 8:45 am]
BILLING CODE 3510-DS-P