[Federal Register Volume 87, Number 47 (Thursday, March 10, 2022)]
[Notices]
[Pages 13704-13705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05068]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-017]


Certain Passenger Vehicle and Light Truck Tires From the People's 
Republic of China: Final Results of Countervailing Duty Administrative 
Review and Rescission of Review, in Part; 2019

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

SUMMARY: The Department of Commerce (Commerce) determines that certain 
producers/exporters of certain passenger vehicle and light truck tires 
from the People's Republic of China (China) received countervailable 
subsidies during the period of review (POR), January 1, 2019, through 
December 31, 2019. Additionally, we are rescinding the review for eight 
companies with no shipments of subject merchandise to the United States 
during the POR.

DATES: Applicable March 10, 2022.

FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski or Richard 
Roberts, AD/CVD Operations, Office I, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1395 
and (202) 482-3463, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 7, 2021, Commerce published the Preliminary Results of 
this review and invited comments from interested parties.\1\ On 
December 6, 2021, Commerce extended the deadline for the final results 
of this administrative review until March 4, 2022.\2\ For a complete 
description of the events that occurred since the Preliminary Results, 
see the Issues and Decision Memorandum.\3\
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    \1\ See Certain Passenger Vehicle and Light Truck Tires from the 
People's Republic of China: Preliminary Results of Countervailing 
Duty Administrative Review Rescission in Part, and Intent To Rescind 
in Part; 2019, 86 FR 50027 (September 7, 2021) (Preliminary 
Results), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Passenger Vehicles and Light Truck Tires 
from the People's Republic of China: Extension of Deadline for Final 
Results of Countervailing Duty Administrative Review; 2019,'' dated 
December 6, 2021.
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Countervailing Duty Administrative Review of 
Certain Passenger Vehicle and Light Truck Tires from the People's 
Republic of China; 2019,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Order

    The products covered by the order are passenger vehicle and light 
truck tires from China. For a complete description of the scope of this 
order, see the Issues and Decision Memorandum.

Analysis of Comments Received

    All issues raised by the interested parties in their case and 
rebuttal briefs are addressed in the Issues and Decision Memorandum. A 
list of these issues is provided in the Appendix to this notice. The 
Issues and Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and CVD 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Changes Since the Preliminary Results

    Based on the comments received from interested parties, we revised 
the calculation of the net countervailable subsidy rates for Sumitomo 
Rubber (Hunan) Co., Ltd. (SRH), Triangle Tyre Co., Ltd., and the non-
selected respondents. For a discussion of these issues, see the Issues 
and Decision Memorandum.

Methodology

    Commerce conducted this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found to be countervailable, we determine that 
there is a subsidy, i.e., a government-provided financial contribution 
that gives rise to a benefit to the recipient, and that the subsidy is 
specific.\4\ The Issues and Decision Memorandum contains a full 
description of the methodology underlying Commerce's conclusions, 
including any determination that relied upon the use of facts otherwise 
available, including, adverse facts available, pursuant to sections 
776(a) and (b) of the Act.
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    \4\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Rescission of Administrative Review, in Part

    It is Commerce's practice to rescind an administrative review of a 
countervailing duty order, pursuant to 19 CFR 351.213(d)(3), when there 
are no reviewable entries of subject merchandise during the POR for 
which liquidation is suspended.\5\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the 
countervailing duty assessment rate calculated for the review 
period.\6\ Therefore, for an administrative review of a company to be 
conducted, there must be a reviewable, suspended entry that Commerce 
can instruct U.S. Customs and Border Protection (CBP) to liquidate at 
the calculated countervailing duty assessment rate calculated for the 
review period.\7\
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    \5\ See, e.g., Lightweight Thermal Paper from the People's 
Republic of China: Notice of Rescission of Countervailing Duty 
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); and 
Circular Welded Carbon Quality Steel Pipe from the People's Republic 
of China: Rescission of Countervailing Duty Administrative Review; 
2017, 84 FR 14650 (April 11, 2019).
    \6\ See 19 CFR 351.212(b)(2).
    \7\ See 19 CFR 351.213(d)(3).

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[[Page 13705]]

    According to the CBP import data, eight companies subject to this 
review did not have reviewable entries of subject merchandise during 
the POR for which liquidation is suspended.\8\ Further, in response to 
the Preliminary Results, no party submitted information to contradict 
the information on the record. Therefore, because there is no evidence 
on the record of this segment of the proceeding to indicate that these 
companies had entries, exports, or sales of subject merchandise to the 
United States during the POR, we are rescinding the administrative 
review with respect to these companies, consistent with 19 CFR 
351.213(d)(3).
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    \8\ These companies are: Hankook Tire China Co., Ltd.; Prinx 
Chengshan (Shandong) Tire Company Ltd.; Qingdao Fullrun Tyre Tech 
Corp., Ltd.; Qingdao Honghuasheng Trade Co., Ltd; Qingdao Kapsen 
Trade Co.; Shandong Habilead Rubber Co., Ltd.; Shandong Hongsheng 
Rubber Technology Co., Ltd.; and Shandong Qilun Rubber Co., Ltd.
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Rate for Non-Selected Companies Under Review

    There are three companies for which a review was requested and not 
rescinded, and which were not selected as mandatory respondents. For 
these companies, we are applying the rate calculated for the sole 
mandatory respondent, Sumitomo Rubber (Hunan) Co., Ltd. (Sumitomo 
Rubber), which is above de minimis and not based entirely on facts 
available. This methodology to establish the non-selected subsidy rate 
is consistent with our practice and uses section 705(c)(5)(A) of the 
Act, which governs the calculation of the all-others rate in 
investigations, as guidance.

Final Results of Review

    We determine the following net countervailable subsidy rates for 
the POR January 1, 2019, through December 31, 2019:

------------------------------------------------------------------------
                                                               Subsidy
                                                                 rate
                     Producer/exporter                       (percent ad
                                                               valorem)
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Sumitomo Rubber (Hunan) Co., Ltd. and its cross-owned              24.79
 affiliates.\9\............................................
Triangle Tyre Co., Ltd.\10\................................       124.53
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   Review-Specific Average Rate Applicable to the Following Companies
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Jiangsu Hankook Tire Co., Ltd..............................        24.79
Qingdao Landwinner Tyre Co., Ltd...........................        24.79
Shandong Province Sanli Tire Manufacture Co., Ltd..........        24.79
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Disclosure

    We intend to disclose to interested parties the calculations and 
analysis performed for these final results of this review within five 
days of the date of publication of this notice, in accordance with 19 
CFR 351.224(b).
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    \9\ Commerce finds the following companies to be cross owned 
with Sumitomo Rubber (Hunan) Co., Ltd.: Sumitomo Rubber (China) Co., 
Ltd. and Sumitomo Rubber (Changshu) Co. Ltd.
    \10\ This rate is based on the rates for the respondents that 
were selected for individual review, excluding rates that are zero, 
de minimis, or based entirely on facts available. See section 
705(c)(5)(A) of the Act.
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Assessment

    In accordance with section 751(a)(2)(C) of the Act and 19 CFR 
351.212(b)(2), Commerce shall determine, and CBP shall assess, 
countervailing duties on all appropriate entries covered by this 
review. Commerce intends to issue assessment instructions to CBP no 
earlier than 35 days after the date of this publication of the final 
results of this review in the Federal Register. If a timely summons is 
filed at the U.S. Court of International Trade, the assessment 
instructions will direct CBP not to liquidate relevant entries until 
the time for parties to file a request for a statutory injunction has 
expired (i.e., within 90 days of publication).
    With respect to the companies for which this administrative review 
is rescinded, countervailing duties shall be assessed at rates equal to 
the cash deposit rate required at the time of entry, or withdrawal from 
warehouse, for consumption, during the period January 1, 2019, through 
December 31, 2019, in accordance with 19 CFR 351.212(c)(1)(i).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce also 
intends to instruct CBP to collect cash deposits of estimated 
countervailing duties in the amounts shown above for the above-listed 
companies with regard to shipments of 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 
firms, CBP will continue to collect cash deposits of estimated 
countervailing duties at the most recent company-specific or all-others 
rate applicable to the company, as appropriate. These cash deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Administrative Protective Order

    This notice serves as a final reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the destruction 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.

Notification to Interested Parties

    These final results are issued and published in accordance with 
sections 751(a)(1) and 777(i) of the Act and 19 CFR 351.221(b)(5).

    Dated: March 3, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Subsidies Valuation
V. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether Commerce Should Reverse its Decision to 
Countervail the Export Buyer's Credit Program (EBCP) based on 
Adverse Facts Available (AFA)
    Comment 2: Whether Commerce Should Reverse its Decision to Apply 
AFA in Finding that the Domestic Producers that Supplied Inputs are 
``Authorities''
    Comment 3: Whether Commerce Should Use World Export Prices as 
the Tier-Two Benchmark Prices to Calculate the Alleged Input 
Subsidies
    Comment 4: Whether Commerce Should Adjust for Ocean Freight if 
it Continues to Rely on Import Prices as the Tier-One Benchmark for 
Inputs
    Comment 5: Whether Commerce Should Apply AFA on Electricity for 
LTAR
    Comment 6: Whether Commerce Should Apply AFA to ``Other 
Subsidies''
    Comment 7: Whether Commerce Should Treat the Assistance for 
Deployment of Trade as an Export Subsidy for SRH
    Comment 8: Whether Commerce Should Apply a Separate Adverse Rate 
for the Enterprise Income Tax Law, R&D Program
VIII. Recommendation

[FR Doc. 2022-05068 Filed 3-9-22; 8:45 am]
BILLING CODE 3510-DS-P