[Federal Register: July 15, 2008 (Volume 73, Number 136)]
[Notices]
[Page 40480-40485]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jy08-14]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-913]
Certain New Pneumatic Off-the-Road Tires From the People's
Republic of China: Final Affirmative Countervailing Duty Determination
and Final Negative Determination of Critical Circumstances
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has reached a
final determination that countervailable subsidies are being provided
to producers/exporters of certain new pneumatic off-the-road tires (OTR
tires) from the People's Republic of China (PRC). For information on
the final subsidy rates, see the ``Final Determination'' section of
this notice.
DATES: Effective Date: July 15, 2008.
FOR FURTHER INFORMATION CONTACT: Mark Hoadley, Jun Jack Zhao, Nicholas
Czajkowski, or Toni Page, AD/CVD Operations, Office 6, Import
Administration, International Trade Administration, U.S. Department of
Commerce, Room 7866, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-3148, (202) 482-1396, (202)
482-1395, or (202) 482-1398, respectively.
SUPPLEMENTARY INFORMATION:
Case History
Since the publication of the preliminary determination in the
Federal Register on December 17, 2007, the following events have
occurred. See Certain New Pneumatic Off-the-Road Tires From the
People's Republic of China: Preliminary Affirmative Countervailing Duty
Determination, 72 FR 71360 (December 17, 2007)
[[Page 40481]]
(Preliminary Determination). At the request of Petitioners,\1\ the
Department aligned the final determination in this countervailing duty
investigation with the final determination in the companion antidumping
duty investigation. See Certain New Pneumatic Off-the-Road Tires from
the People's Republic of China: Alignment of Final Countervailing Duty
Determination With Final Antidumping Duty Determination, 73 FR 3238
(January 17, 2008).
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\1\ Titan Tire Corporation and United Steel, Paper and Forestry,
Rubber, Manufacturing, Energy Allied Industrial and Service Workers
International Union, AFL-CIO-CLC (collectively, Petitioners). The
domestic interested party is Bridgestone Americas Holding, Inc. and
its subsidiary, Bridgestone Firestone North America Tire, LLC
(collectively, Bridgestone).
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In the Preliminary Determination, we invited Petitioners,
Bridgestone, and all of the Respondents \2\ to comment on land use
rights. We received comments from all parties regarding this issue on
January 7, 2008. The Petitioners, Bridgestone and the Respondents also
submitted factual information and arguments prior to the final
determination based on various deadlines for submissions of factual
information and/or arguments established by the Department subsequent
to the Preliminary Determination.
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\2\ The Government of The People's Republic of China (GOC),
Guizhou Tire Co., Ltd. (GTC), Hebei Starbright Tire Co., Ltd.
(Starbright), and Tianjin United Tire & Rubber International Co.,
Ltd. (TUTRIC) (collectively, Respondents).
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On January 9, 2008, the Department issued supplemental
questionnaires to the GOC, GTC, Starbright, and TUTRIC. We received
responses to our January 9, 2008 supplemental questionnaire from all
Respondents on February 6, 2008. We issued another supplemental
questionnaire to all respondent parties on January 25, 2008 for which
we received responses from all Respondents on February 15, 2008. The
Department issued a supplemental questionnaire to the GOC on February
13, 2008 for which the GOC filed a response on February 27, 2008. The
Department issued a supplemental questionnaire to GTC on February 15,
2008 for which GTC filed a response on February 28, 2008. The
Department also issued supplemental questionnaires to TUTRIC and
Starbright on February 19, 2008, pursuant to which the companies filed
responses on February 27, 2008.
The Department received requests for a hearing from the
Petitioners, Bridgestone, the GOC, Starbright, and GTC on January 9,
2008 and on January 16, 2008 from TUTRIC. The Department had scheduled
the hearing for June 19, 2008; however, on June 16, 2008 the Department
received a letter from Bridgestone stating that all interested parties
agreed that a hearing was not necessary. See Letter to the Department,
``New Pneumatic Off-the-Road Tires From the People's Republic of China:
Consent Withdrawal of All Hearing Requests'' (June 16, 2008), on file
in the Department's Central Records Unit (CRU) (Room 1117 in the HCHB
Building).
From March 3 through March 13, 2008, we conducted verification of
the questionnaire responses submitted by the GOC, including the
national, provincial, and local governments, GTC, and TUTRIC. The
Department issued verification reports on April 22, 2008 and April 24,
2008. See Memorandum to Thomas Gilgunn, Program Manager, Countervailing
Duty Investigation: New Pneumatic Off-the-Road Tires from the People's
Republic of China: Verification of the Questionnaire Responses
Submitted by the Government of the People's Republic of China (GOC)
(GOC Verification Report); Memorandum to Thomas Gilgunn, Program
Manager, Countervailing Duty Investigation: New Pneumatic Off-the-Road
Tires from the People's Republic of China: Verification of the
Questionnaire Responses Submitted by GTC Co., Ltd. (GTC Verification
Report); Memorandum to Thomas Gilgunn, Program Manager, Countervailing
Duty Investigation: New Pneumatic Off-the-Road Tires from the People's
Republic of China: Meetings with the Government of the Guizhou Province
Regarding GTC Co., Ltd. and Affiliates (Guizhou Province Verification
Report); Memorandum to Thomas Gilgunn, Program Manager, Countervailing
Duty Investigation: New Pneumatic Off-the-Road Tires from the People's
Republic of China: Verification of the Questionnaire Responses
Submitted by Tianjin United Tire & Rubber International Co., Ltd.
(TUTRIC Verification Report); and Memorandum to Thomas Gilgunn, Program
Manager, Countervailing Duty Investigation: New Pneumatic Off-the-Road
Tires from the People's Republic of China: Meetings with the Government
of Tianjin Municipality Regarding Tianjin United Tire & Rubber
International Co., Ltd. and Affiliates (Tianjin Government Verification
Report).
On March 7, 2008, the Department decided not to verify Starbright
because the company had repeatedly declined to provide requested
information. See Letter to Starbright, Countervailing Duty
Investigation: New Pneumatic Off-the-Road Tires from the People's
Republic of China (March 7, 2008), on file in the Department's CRU. On
March 11 and March 12, 2008, Starbright and the GOC, respectively,
filed letters objecting to the Department's decision. On March 12,
2008, Petitioners and Bridgestone filed letters stating that the
Department should not verify Starbright. The Department held several
meetings with Starbright officials and GOC officials. See Memoranda to
the File, ``Ex-parte Meeting with Representatives of Hebei Starbright
Tire Co., Ltd.'' (March 11, 2008), ``Meeting with Chinese Ministry of
Commerce Bureau of Fair Trade Director General Li Ling'' (March 12,
2008), ``Ex-Parte Meeting with Representatives of Hebei Starbright Tire
Co., Ltd.'' (March 24, 2008), on file in the Department's CRU.
After evaluating all of the parties' submissions and arguments on
the matter, the Department stated that it would conduct a limited
verification of Starbright's recurring subsidies received after
Starbright's change in ownership. See Letter to Starbright,
Countervailing Duty Investigation of New Pneumatic Off-the-Road Tires
from the People's Republic of China (March 12, 2008). The Department
then issued the GOC and Starbright a supplemental questionnaire
providing them a final opportunity to provide the information
previously requested. See the Department's questionnaires to the GOC
and Starbright (March 24, 2008). The Department stated that it would
reconsider its decision not to verify Starbright and the local
governments that have jurisdiction over the company if Starbright and
the GOC provided complete responses to the Department's March 24, 2008
questionnaire concerning Starbright's change in ownership. In the cover
letter to the questionnaire, we stated that we needed the information
regarding Starbright's purchase of Hebei Tire Co., Ltd. to analyze
fully Starbright's claim that the sale at issue was at arm's length and
for fair market value. The Department informed Starbright that, if the
company or the GOC decided not to provide the information requested,
the Department would use facts otherwise available with possible
adverse inferences. See the Cover Letter of the Department's March 24,
2008 Questionnaire to Starbright. The GOC and Starbright filed
responses to these questionnaires, respectively, on April 8 and April
9, 2008.
Based on our examination of these responses, the Department decided
to verify. See Letter to the GOC, Countervailing Duty Investigation:
New Pneumatic Off-the-Road Tires from the People's Republic of China
(April 18, 2008) and Letter to Starbright, Countervailing Duty
Investigation: New
[[Page 40482]]
Pneumatic Off-the-Road Tires from the People's Republic of China (April
21, 2008) to which the verification outlines were attached, on file in
the Department's CRU. The Department then verified Starbright as well
as the governments of Hebei province and the city of Xingtai from April
24 through May 1, 2008. We issued verification reports on May 13, 2008
and May 14, 2008. See Memorandum to Thomas Gilgunn, Program Manager,
Countervailing Duty Investigation: New Pneumatic Off-the-Road Tires
from the People's Republic of China: Meetings with the Government of
Hebei Province and Xingtai Municipality Regarding Hebei Starbright Tire
Co., Ltd. (Starbright) and Hebei Tire Co., Ltd. (Hebei Tire) (Hebei
Province Verification Report) and Memorandum to Thomas Gilgunn, Program
Manager, Countervailing Duty Investigation: New Pneumatic Off-the-Road
Tires from the People's Republic of China: Verification of the
Questionnaire Responses Submitted by Hebei Starbright Tire Co., Ltd.
(Starbright) (Starbright Verification Report).
On May 2, 2008, we issued our post-preliminary analysis for certain
programs for which the Department stated in the Preliminary
Determination additional information was needed. See Memorandum to
David M. Spooner, Assistant Secretary for Import Administration,
Countervailing Duty Investigation of New Pneumatic Off-the-Road Tires
from the People's Republic of China; Post-Preliminary Analysis of Non-
Tradable Share Reform; Provision of Water to FIEs for Less than
Adequate Remuneration; Grants to the Tire Industry for Electricity; and
Various Provincial/Municipal Programs (May 2, 2008) (Post-Preliminary
Analysis), on file in the Department's CRU. The Department then issued
a post-preliminary analysis regarding the change in ownership for
Starbright. See Memorandum to David M. Spooner, Assistant Secretary for
Import Administration, Countervailing Duty Investigation of Certain New
Pneumatic Off-the-Road Tires (OTR Tires) from the People's Republic of
China; Analysis of Change in Ownership (May 28, 2008) (CIO Memorandum).
Due to the decision to conduct verification of Starbright, the
Department set up two separate briefing schedules: one for all issues
except Starbright-specific issues and one for Starbright issues. See
Memorandum to the File, Countervailing Duty Investigation of Certain
New Pneumatic Off-the-Road Tires from the People's Republic of China:
Briefing and Hearing Schedules (April 3, 2008) and Memorandum to the
File, Countervailing Duty Investigation of Certain New Pneumatic Off-
the-Road Tires from the People's Republic of China: Briefing and
Hearing Schedules (May 28, 2008). In accordance with the briefing
schedules, we received case briefs from Petitioners, Bridgestone, the
GOC, GTC, and TUTRIC on May 9 and 12, 2008. The same parties submitted
rebuttal briefs on May 15, 2008. The Department then received case
briefs regarding Starbright-specific issues on June 4 and June 5, 2008
from Petitioners, Bridgestone, the GOC, and Starbright. On June 6,
2008, the Department determined that Starbright's brief contained
untimely new factual information and requested that Starbright submit
replacement pages with all references to this information removed. See
Letter to Starbright, New Factual Information (June 6, 2008).
Starbright submitted replacement pages without the untimely filed new
factual information on June 9, 2008. Petitioners, Bridgestone, the GOC,
and Starbright submitted rebuttal briefs pertaining to Starbright-
specific issues on June 9 and June 10, 2008.
On June 10, 2008, both Bridgestone and Starbright filed letters
with the Department alleging that the other party had included new
factual information on the record in both the case briefs and the
rebuttal briefs. On June 13, 2008, the Department issued a memorandum
to the file addressing all allegations of new factual information. See
Memorandum to the File, Various Allegations Concerning Case and
Rebuttal Briefs Regarding Hebei Starbright Tire Co., Ltd. (Starbright),
on file in the Department's CRU. In the June 13, 2008 memorandum, the
Department: (1) Determined that we would not address Petitioners' or
Bridgestone's uncreditworthiness allegation against Starbright that
both raised in their respective briefs; (2) determined that information
in Starbright's rebuttal brief was not new factual information; (3)
determined that information submitted by Bridgestone in its rebuttal
brief was not new factual information; and (4) clarified that
Bridgestone's comments regarding market distortions in its June 9, 2008
rebuttal brief were allowed as part of the arguments concerning whether
the sale of Hebei Tire was for fair market value.
Period of Investigation
The period of investigation (POI) for which we are measuring
subsidies is calendar year 2006.
Scope of the Investigation
The products covered by the scope of this investigation are new
pneumatic tires designed for off-the-road (OTR) and off-highway use,
subject to certain exceptions. In the Preliminary Determination, we
stated that we had received comments on the scope of the investigation
from a number of parties and that all comments raised by the parties
would be addressed in the companion antidumping investigation. On May
14, 2008, the Department issued a memorandum regarding the scope of
both the AD and CVD Investigations on OTR Tires from the PRC,
addressing the scope comments submitted by multiple interested parties.
See Preliminary Determination: Comments on the Scope of the
Investigations (Preliminary Scope Determination).
In the Preliminary Scope Determination, we made certain
modifications to the scope of the investigation and invited interested
parties to comment on these modifications. Interested parties submitted
comments on the Preliminary Scope Determination on May 22, 2008 and
rebuttal comments on May 27, 2008. Based on these comments, we have
made certain clarifications to the scope of the investigation. These
clarifications, as well as a complete description of all products
covered by the scope of this investigation, and a list of excluded
products, are reflected in the Final Scope of the Investigation which
is appended to this notice at Appendix I.
All comments submitted on the Preliminary Scope Determination are
addressed in the Scope Comments section of the Issues and Decision
Memorandum for the Final Affirmative Countervailing Duty Determination:
Certain New Pneumatic Off-the-Road Tires from the People's Republic of
China (Issues and Decision Memorandum), which is issued concurrently
with this notice.
Critical Circumstances
On March 11, 2008, Petitioners submitted a timely critical
circumstances allegation. On April 22, 2008, the Department
preliminarily determined that critical circumstances did not exist for
imports of OTR tires from the PRC. See Notice of Preliminary Negative
Determination of Critical Circumstances: Certain New Pneumatic Off-the-
Road Tires From the People's Republic of China, 73 FR 21588 (April 22,
2008) (Critical Circumstances Notice). Pursuant to section 705(a)(2) of
the Tariff Act of 1930, as amended (the
[[Page 40483]]
Act), in order for critical circumstances to exist, the Department must
find that there are countervailable subsidies that are inconsistent
with the World Trade Organization Agreement on Subsidies and
Countervailing Measures (SCM Agreement ) (i.e., import substitution
subsidies or export subsidies), and that there have been massive
imports over a relatively short period (i.e., whether there was a surge
in imports). Based on our analyses of the results of verification and
the comments submitted by the parties, we have determined that none of
the respondents have received subsidies inconsistent with the SCM
Agreement. We therefore need not reach the issue of whether there have
been massive imports over a relatively short period of time. Since the
requirements of section 705(a)(2) of the Act have not been met, we
determine that critical circumstances do not exist with respect to
imports of OTR tires from the PRC.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised by
interested parties in their case briefs and rebuttal briefs on the
Preliminary Determination, the Post-Preliminary Analysis, and the CIO
Memorandum, are discussed in the Issues and Decision Memorandum. A list
of the subsidy programs and of the issues that parties have raised is
attached to this notice as Appendix II. Parties can find a complete
discussion of all of the subsidy programs and issues raised in this
investigation and the corresponding recommendations in this public
memorandum, which is on file in the Department's CRU. A complete
version of the Issues and Decision Memorandum is available at http://
www.trade.gov/ia under the heading ``Federal Register Notices.'' The
paper copy and the electronic version of the Issues and Decision
Memorandum are identical in content.
Final Determination
In accordance with section 705(c)(1)(B)(i) of the Act, we determine
the total net countervailable subsidy rates to be:
------------------------------------------------------------------------
Net subsidy
Producer/Exporter rate
(percent)
------------------------------------------------------------------------
Guizhou Tire Co., Ltd. (GTC)............................... 2.45
Hebei Starbright Tire Co., Ltd. (Starbright)............... 14.00
Tianjin United Tire & Rubber International Co., Ltd. 6.85
(TUTRIC)..................................................
All-Others................................................. 5.62
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In accordance with section 705(c)(5)(A)(ii) of the Act, we have
calculated the all others rate based on a weighted average of the three
mandatory respondents' calculated rates.
Suspension of Liquidation
In accordance with sections 703(d)(1)(B) and (2) of the Act, we
directed U.S. Customs and Border Protection (CBP) to suspend
liquidation of all entries of OTR tires from the PRC that were entered,
or withdrawn from warehouse, for consumption on or after December 17,
2007. In accordance with section 703(d) of the Act, we instructed CBP
to discontinue the suspension of liquidation for countervailing duty
purposes for subject merchandise entered, or withdrawn from warehouse,
on or after April 15, 2008, but to continue the suspension of
liquidation of all entries from December 17, 2007 through April 14,
2008.
If the ITC issues a final affirmative determination of injury, we
will issue a countervailing duty order, reinstate suspension of
liquidation under section 706(a) of the Act for all entries, and
require a cash deposit of estimated countervailing duties for such
entries of merchandise at the rates indicated above. If the ITC
determines that material injury to, threat of material injury to, or
material retardation of, the domestic industry does not exist, this
proceeding will be terminated and all estimated duties deposited or
securities posted as a result of the suspension of liquidation will be
refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with section
351.305(a)(3) of the Department's regulations. Failure to comply is a
violation of the APO.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: July 7, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
Appendix I: Final Scope of the Investigation
The products covered by the scope 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, 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,\3\ combine harvesters,\4\ agricultural high
clearance sprayers,\5\ industrial tractors,\6\ log-skidders,\7\
agricultural implements, highway-towed implements, agricultural
logging, and agricultural, industrial, skid-steers/mini-loaders;\8\
(2) construction vehicles and equipment, including earthmover
articulated dump products, rigid frame haul trucks,\9\ front end
loaders,\10\ dozers,\11\ lift trucks,
[[Page 40484]]
straddle carriers,\12\ graders,\13\ mobile cranes,\14\ 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.\15\ 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.
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\3\ 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.
\4\ Combine harvesters are used to harvest crops such as corn or
wheat.
\5\ Agricultural sprayers are used to irrigate agricultural
fields
\6\ 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.
\7\ 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.
\8\ 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.
\9\ 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.
\10\ 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.
\11\ 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.
\12\ 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.
\13\ 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.
\14\ i.e., ``on-site'' mobile cranes designed for off-highway
use.
\15\ 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.
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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 \16\ 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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\16\ 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:
P--Identifies a tire intended primarily for service on
passenger cars;
LT--Identifies a tire intended primarily for service on
light trucks; and,
ST--Identifies a special tire for trailers in highway
service.
Suffix letter designations:
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'';
MH--Identifies tires for Mobile Homes;
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.
Example: 8R17.5 LT, 8R17.5 HC;
LT--Identifies light truck tires for service on trucks,
buses, trailers, and multipurpose passenger vehicles used in nominal
highway service; and
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).
Appendix II: Issues and Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Analysis of Programs
A. Programs Determined To Be Countervailable
1. Government Provision of Rubber for Less than Adequate
Remuneration.
2. Government Policy Lending
3. Government Debt Forgiveness to TUTRIC
4. Government Debt Forgiveness and the Provision of Land to
Starbright Pursuant to Its Change in Ownership
5. Stamp Tax Exemption on Share Transfers under NTSR
6. Tax Subsidies to FIEs in Specially Designated Geographic
Areas, and Local Income Tax Exemption and Reduction Programs for
``Productive'' FIEs
7. VAT and Tariff Exemptions for FIEs and Certain Domestic
Enterprises Using Imported Equipment in Encouraged Industries
8. State Key Technology Renovation Project Fund
B. Programs Determined To Be Not Countervailable
C. Programs Determined To Not Confer a Benefit During the POI
D. Programs Determined To Be Not Used
E. Program Determined To Be Terminated
V. Analysis of Comments
A. General Issues including Applicability of the CVD Law to the
PRC, Cut-Off Date, and Double Remedies
Comment A.1: Application of the CVD Law to Non-Market Economies,
Including the PRC
Comment A.2: Application of the CVD Law to the PRC is Consistent
With the APA
Comment A.3: Whether Simultaneous Application of CVD Law in This
Investigation and NME Methodology in the Parallel Antidumping
Investigation Imposes Double Trade Remedies
Comment A.4: Whether December 11, 2001, is the Appropriate Date
From Which the Department May Measure Subsidies in the PRC
B. Attribution of Subsidies and Cross-Ownership
Comment B.1: Attribution of Subsidies to, and Cross-Ownership
of, TUTRIC/DCB
C. Whether GTC and TUTRIC Are SOEs
Comment C.1: Whether GTC Is an SOE
Comment C.2: Whether TUTRIC Is an SOE
D. Government Provision of Rubber for Less Than Adequate
Remuneration
Comment D.1: Whether the GOC's Provision of Rubber Is Specific
Comment D.2: Whether the GOC's Provision of Rubber Confers a
Financial Contribution
Comment D.3: GOC Control of the Rubber Market
Comment D.4: Purchases of SOE-Produced Rubber Through Private
Trading Companies
Comment D.5: Whether Imported Rubber Is Countervailable
Comment D.6: Rubber Benchmark
Comment D.7: Adjustments to Rubber Calculation
E. Government Policy Lending and Government Debt Forgiveness
Comment E.1: Specificity
Comment E.2: SOCBs and Financial Contribution
Comment E.3: Role of the GOC in the PRC Banking System and
Whether To Use an Internal or External Benchmark
Comment E.4: Issues Regarding Building an External Benchmark
Comment E.5: Whether Government Policy Lending to GTC Is
Countervailable
Comment E.6: Whether There Was a Financial Contribution to
TUTRIC
Comment E.7: Whether TUTRIC's Loans From Certain Other Banks
Were Forgiven
F. Starbright-Specific Issues
Comment F.1: Due Process
Comment F.2: Application of Total Adverse Facts Available
Comment F.3: Application of the CIO Methodology
[[Page 40485]]
Comment F.4: The Arm's Length Nature of the Transaction
Comment F.5: The Purchase of Hebei Tire's Assets Was for Fair
Market Value
Comment F.6: Whether Starbright Purchased ``Substantially All''
of Hebei Tire's Assets
Comment F.7: Whether the Department Erred in Finding that Hebei
Tire's Non-Recurring Subsidies Pass Through to Starbright
Comment F.8: Whether Any Benefit Found by the Department Should
Be Limited to the Difference Between the Appraised Value and the
Value Paid
Comment F.9: Debt Forgiveness--Unpaid Loans and Other Primary
Debt
Comment F.10: Debt Forgiveness--Loan Guarantee Obligations
Comment F.11: The Countervailability of Starbright's Granted
Land Use Rights
Comment F.12: The Countervailability of Starbright's Land Leased
From Local Villages
Comment F.13: Submission of New Factual Information
G. Other Countervailable Programs
Comment G.1: Whether Non-Tradeable Share Reform (NTSR) Is
Specific
Comment G.2: Whether GTC Received a Benefit From the Transfer of
Bonus Shares to Its Tradeable Shareholders Under NTSR
Comment G.3: Whether GTC Received a Benefit From the GOC's
Exemption of Stamp Taxes on Share Transfers Under NTSR
Comment G.4: Whether GTC Received a Benefit From the GOC's
Exemption of Income Taxes on Income Derived Under NTSR
Comment G.5: FIE Tax Exemptions
Comment G.6: Value Added Tax and Tariff Exemptions on Imported
Equipment
Comment G.7: State Key Technology Renovation Project Fund
H. Government Provision of Land
Comment H.1: Whether the GOC's Provision of Land Is a Financial
Contribution
Comment H.2: Cut-Off Date for Acquisition of Land-Use Rights
Comment H.3: Whether the GOC's Provision of Land Is a Recurring
Benefit
Comment H.4: TUTRIC Land Countervailability
Comment H.5: Whether the GOC's Provision of Land to TUTRIC and
GTC Is Specific
Comment H.6: Whether the GOC's Land-Use Rights System Operated
on Market Principles During the POI
Comment H.7: Land Benchmark
I. Not Countervailable Programs
Comment I.1: VAT Export Rebates
J. Scope Comments
Comment J.1: Imported Wheel Mounted Tires Certifications
Comment J.2: OTR Agricultural Tires, Including for Highway-Towed
Implements
Comment J.3: Tubes and Flaps
Comment J.4: Earthmoving, Mining, and Construction Tires
VI. Recommendation
[FR Doc. E8-16154 Filed 7-14-08; 8:45 am]
BILLING CODE 3510-DS-P