1

INFORMATION REGARDING APPLICATION OF TRANSITIONAL PRODUCTSPECIFIC SAFEGUARD MEASURE TO CHINESE TIRES

On September 11, 2009, the President of the United States signed a determination to apply an 

increased duty to imports of certain passenger vehicle and light truck tires from China for a 

period of three years in order to remedy a market disruption caused by a surge in tire imports as 

determined by the U.S. International Trade Commission (USITC). This measure was imposed 

under section 421 of the Trade Act of 1974, as amended (19 U.S.C. 2451) (Section 421).

Q: What is the remedy?

Certain passenger vehicle and light truck tires imported from China will be subject to an 

additional duty for a period of three years in addition to the normal 4 percent duty that applies to 

imports of tires. The additional duty is set at 35 percent ad valorem for the first year, 30 percent 

ad valorem for the second year, and 25 percent ad valorem for the third year. 

Q: When does the remedy go into effect and how long will it last? 

The additional duty will be effective with respect to goods entered or withdrawn from warehouse 

for consumption, on or after 12:01 a.m. EDT on September 26, 2009. The remedy will cease to 

apply on September 25, 2012, unless the remedy is modified or terminated earlier.

Q: What are the products covered by the remedy?

The remedy applies with respect to passenger vehicle and light truck tires consisting of new 

pneumatic tires, of rubber, from China, of a kind used on motor cars (except racing cars) and onthe-highway light trucks, vans, and sport utility vehicles, provided for in subheadings 

4011.10.10, 4011.10.50, 4011.20.10, and 4011.20.50 of the Harmonized Tariff Schedule of the 

United States.

Q: Why was this remedy imposed?

The President’s determination is a response to a surge of tire imports from China that has 

disrupted the domestic market.

The United States International Trade Commission (USITC) conducted an investigation under 

Section 421 and determined that certain passenger vehicle and light truck tires of Chinese origin 

were being imported into the United States in such increased quantities or under such conditions 

as to cause or threaten to cause market disruption to the domestic producers of like or directly 

competitive products. The USITC’s report, Certain Passenger Vehicle and Light Truck Tires 

from the People’s Republic of China, Investigation No. TA-421-7, USITC Publication No. 4085, 

can be found on the USITC’s website at 

http://www.usitc.gov/publications/safeguards/pub4085.pdf. 
2

In making its market disruption determination, the USITC found, among other things, that

imports of the subject tires from China had risen by 215.5 percent between 2004 and 2008 (the 

period examined). The USITC concluded that, whether viewed over the last one-, two-, or threeyear period, the increase was large and rapid, and was continuing at the end of the period 

examined. The USITC also found that the domestic tire industry is materially injured, and that 

rapidly increasing imports from China were a significant cause of the material injury. It found 

that almost all the industry indicators declined during the period examined (2004 - 2008), with 

capacity, production, shipments, number of U.S. production and related workers and hours

worked, productivity, and financial performance at the lowest level in 2008. It also noted that 

four U.S. plants were closed during that period, with plans announced to close an additional three 

plants during 2009. 

Section 421 authorizes the President to take action to “prevent or remedy the market disruption” 

found by the USITC.

As an input into the President’s determination, USTR conducted a fact gathering process to assist 

the President in formulating the appropriate remedy. This process included an opportunity for all

interested parties to submit views and evidence regarding remedial action to the market 

disruption. In addition, USTR and an interagency team conducted additional research on the 

remedy issue. In this instance, building on the information gathered by the USITC and in the 

USTR’s fact gathering process, USTR and an interagency team conducted further economic 

analysis on the tire market in the United States, to help assess the market and other economic 

effects of remedial action to the market disruption. Among other things, this economic analysis 

considered factors such as the types of tires bought and sold in the United States, variations in 

terms of tire quality and prices, and the degree of substitutability between domestically produced 

tires and imports, as well as information received regarding likely responses by producers, 

importers, and consumers to the imposition of a remedy.

Taking into account these and other factors, the President determined that a 35 percent additional 

duty would be the most appropriate action to remedy the market disruption found by the USITC. 

In addition, although not required by Section 421, the President also decided that the additional 

duty should be lowered in the second and third years to allow domestic producers to adapt 

gradually to competition from Chinese imports.

Q: Where can I find the President’s determination and proclamation?

The President’s determination was published in the Federal Register on September 16, 2009, 74 

Fed. Reg. 47433. The Proclamation was published in the Federal Register on September 17, 

2009, 74 Fed. Reg. 47861.