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 Department of Commerce International Trade Administration [A-552-828]
 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 Socialist Republic of Vietnam (Vietnam) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is October 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: Jasun Moy or Robert Scully, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-8194 or (202) 482-0572, 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 and the revised deadline is now December 29, 2020.[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. Scope of the Investigation The products covered by this investigation are passenger tires from Vietnam. 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. The deadline to submit scope case briefs is established in the Preliminary Scope Decision Memorandum. There will be no further opportunity to comment on scope-related issues.[7] 
 
 Methodology Commerce is conducting this investigation in accordance with section 731 of the Act. Commerce has calculated export prices and constructed export prices in accordance with sections 772(a) and 772(b) of the Act, respectively. Because Vietnam is a non-market economy, within the meaning of section 771(18) of the Act, Commerce has calculated normal value in accordance with section 773(c) of the Act. Furthermore, pursuant to section 776(a) and (b) of the Act, Commerce has preliminarily relied upon facts otherwise available with adverse inferences to determine the estimated weighted-average dumping margin for the Vietnam-wide entity. For a full description of the methodology underlying Commerce's preliminary determination, 
                    *see*
                     the Preliminary Decision Memorandum. Combination Rates In the 
                    *Initiation Notice,*[8]
                    
                     Commerce stated that it would calculate producer/exporter combination rates for the respondents that are eligible for a separate rate in this investigation. Policy Bulletin 05.1 describes this practice.[9]
                    
                     In this investigation, we assigned producer/exporter combination rates for respondents eligible for separate rates. Preliminary Determination Commerce preliminarily determines that the following estimated weighted-average dumping margins exist: Exporter
Producer
Estimated
                             weighted-average 
                             dumping margin 
                             (percent)
Cash deposit rate
                             (adjusted for 
                             subsidy offset) 
                             (percent)Kenda Rubber (Vietnam) Co. Ltd
Kenda Rubber (Vietnam) Co. Ltd
0.00
0.00Sailun Group (HongKong) Co., Limited/Sailun Tire Americas Inc
Sailun (Vietnam) Co., Ltd
0.00
0.00Bridgestone Corporation
Bridgestone Tire Manufacturing Vietnam LLC
0.00
0.00Bridgestone Tire Manufacturing Vietnam LLC
Bridgestone Tire Manufacturing Vietnam LLC
0.00
0.00Kumho Tire (Vietnam) Co., Ltd
Kumho Tire (Vietnam) Co., Ltd
0.00
0.00The Yokohama Rubber Co., Ltd
Yokohama Tyre Vietnam Co
0.00
0.00Vietnam-Wide Entity

22.30
22.27
 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 subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the 
                    **Federal Register**
                    , as discussed below. 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 equal to the weighted-average amount by which normal value exceeds U.S. price, as indicated in the chart above as follows: (1) For the producer/exporter combinations listed in the table above, except those specified for Kenda Rubber (Vietnam) Co. Ltd. (Kenda) and Sailun Group (HongKong) Co., Limited/Sailun Tire Americas Inc. (Sailun), the cash deposit rate is equal to the estimated weighted-average dumping margin listed for that combination in the table; (2) for all combinations of Vietnam producers/exporters of merchandise under consideration that have not established eligibility for their own separate rates, the cash deposit rate will be equal to the estimated weighted-average dumping margin established for the Vietnam-wide entity; and (3) for all third-country exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Vietnam producer/exporter combination (or the Vietnam-wide entity) that supplied that third-country exporter. Because the estimated weighted-average dumping margins for Kenda and Sailun in the above-specified producer/exporter combinations are zero or 
                    *de minimis*
                     (
                    *i.e.,*
                     less than two percent), Commerce will not direct CBP to suspend liquidation of entries of subject merchandise from those producer/exporter combinations. Entries of subject merchandise from these exporters supplied by any other producer, or from these producers that supplied any other exporter, or from third-country exporters that sourced from these producer/exporter combinations, are subject to suspension of liquidation and provisional measures at the cash deposit rate established for the Vietnam-wide entity. As explained in the Preliminary Decision Memorandum, in accordance with section 735(a)(4) of the Act and 19 CFR 351.204(e)(1), should the final estimated weighted-average dumping margins be zero or 
                    *de minimis*
                     for Kenda or Sailun in the producer/exporter combination identified above, and should the investigation result in an antidumping duty order pursuant to section 736 of the Act, entries of merchandise from those producer/exporter combinations will be excluded from the order.[10]
                    
                     Such exclusions will not be applicable to merchandise exported to the United States by any other producer/exporter combinations or by third-country exporters that sourced from the excluded producer/exporter combinations. Commerce normally adjusts cash deposits for estimated antidumping duties by the amount of domestic subsidy pass-through and export subsidies countervailed in a companion countervailing duty (CVD) proceeding, when CVD provisional measures are in effect. Accordingly, where Commerce preliminarily made an affirmative determination for domestic subsidy pass-through or export subsidies, Commerce has offset the estimated weighted-average dumping margin by the appropriate rates. Any such adjusted cash deposit rate may be found in the Preliminary Determination section above. Should provisional measures in the companion CVD investigation expire prior to the expiration of provisional measures in this LTFV investigation, 
                    ( print page 506)
                    Commerce will direct CBP to begin collecting cash deposits at a rate equal to the estimated weighted-average dumping margins calculated in this preliminary determination unadjusted for export subsidies at the time the CVD provisional measures expire. These suspension of liquidation instructions will remain in effect until further notice. Disclosure Commerce intends to disclose to interested parties the calculations performed in connection with this preliminary determination within five days of its 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 case briefs and written comments on non-scope issues 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.[11]
                    
                     Commerce has modified certain of its requirements for serving documents containing business proprietary information until further notice.[12]
                    
                     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. 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. Pursuant to 19 CFR 351.210(e)(2), Commerce requires that requests by respondents for postponement of a final antidumping 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 1 and 7, 2020, pursuant to 19 CFR 351.210(e), Sailun and Kenda requested, respectively, that Commerce postpone the final determination and that provisional measures be extended for a period not to exceed six months.[13]
                    
                     In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) the preliminary determination is affirmative; (2) the requesting exporters account 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, pursuant to section 735(a)(2) of the Act. 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 of sales at LTFV. 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 days after the final determination whether imports of the subject merchandise 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. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance.
 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.
                        ( print page 507) 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 (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: American 
                                 standard size
Metric size
Load 
                                 index26x10R12
254/70R/12
7227x10R14
254/65R/14
7328x10R14
254/70R/14
7528x10R14
254/70R/14
8630X10R14
254/80R/14
7930x10R15
254/75R/15
7830x10R14
254/80R/14
9031x10R14
254/85R/14
8132x10R14
254/90R/14
9532x10R15
254/85R/15
8332x10R15
254/85R/15
9433x10R15
254/90R/15
8633x10R15
254/90R/15
9535x9.50R15
241/105R/15
8235x10R15
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. Scope of Investigation V. Scope Comments VI. Affiliation and Single Entity Treatment VII. Application of Facts Available and Use of Adverse Inferences VIII. Determination Not to Select KTV as a Voluntary Respondent IX. Discussion of the Methodology X. Adjustment Under Section 777A(F) of the Act XI. Adjustment to Cash Deposit Rate for Export Subsidies XII. Currency Conversion XIII. Recommendation


# Footnotes

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*). Back to Citation
 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). Back to Citation
 3.
    
                         
                        *See*
                         Memorandum, “Decision Memorandum for the Preliminary Determination in the Less-Than-Fair-Value Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). Back to Citation
 4.
    
                         
                        *See Antidumping Duties; Countervailing Duties, Final Rule,*62 FR 27296, 27323 (May 19, 1997). Back to Citation
 5.
    
                         
                        *See Initiation Notice,*
                         85 FR at 38855. Back to Citation
 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). Back to Citation
 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. Back to Citation
 8.
    
                         
                        *See Initiation Notice,*
                         85 FR at 38858. Back to Citation
 9.
    
                         
                        *See*
                         Enforcement and Compliance's Policy Bulletin No. 05.1, regarding, “Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,” April 5, 2005 (Policy Bulletin 05.1), available on Commerce's website at 
                        *http://enforcement.trade.gov/​policy/​bull05-1.pdf.* Back to Citation
 10.
    
                         Specifically, Commerce only intends to exclude from the order the mandatory respondents with a final estimated weighted-average dumping margin of zero or 
                        *de minimis.*
                         If any of the separate rate companies are assigned a final estimated weighted-average dumping margin of zero or 
                        *de minimis,*
                         Commerce does not intend to exclude such companies from the order. Back to Citation
 11.
    
                         
                        *See*19 CFR 351.309; 
                        *see also*19 CFR 351.303 (for general filing requirements). Back to Citation
 12.
    
                         
                        *See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020) (Temporary Rule); and Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 2020).* Back to Citation
 13.
    
                         
                        *See*
                         Sailun's Letter, “Sailun's Request to Extend the Final Determination: Antidumping Duty Investigation of Passenger Vehicle and Light Truck Tires (“PVLT”) from Vietnam (A-552-828),” dated December 1, 2020; 
                        *see also*
                         Kenda's Letter “Investigation of Passenger Vehicle and Light Truck Tires from Vietnam: Request to Extend the Final Determination,” dated December 7, 2020. Back to Citation


[FR Doc. 2020-29301 Filed 1-5-21; 8:45 am] BILLING CODE 3510-DS-P