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US Commerce Investigating 'Dumped' Tire Imports

by Mike Godfrey, Tax-News.com, Washington

10 February 2016


On February 4, the US Commerce Department (Commerce) decided to initiate antidumping (AD) and anti-subsidy countervailing duty (CVD) investigations into imports of certain new pneumatic off-the-road (OTR) tires from China, India, and Sri Lanka.

The alleged AD margins are between 11.20 percent and 77.69 percent for Chinese imports and between 10.77 percent and 76.45 percent for imports from India. One of the petitioners in the case, United Steelworkers (USW), indicated that imports from the countries have grown significantly since 2012, even as demand in several important markets has fallen due to declining farm income and low commodity prices.

The US International Trade Commission (ITC) is scheduled to make its preliminary injury determinations on or before February 22, 2016. If the ITC determines that there is a reasonable indication that the imports materially injure, or threaten material injury to, the domestic OTR tire industry, the investigations will continue, and Commerce will be scheduled to make its preliminary CVD determinations in April 2016 and its preliminary AD determinations in June 2016.

Excluded from the scope of these investigations are any products covered by the existing AD and CVD orders on other new pneumatic OTR tires from China.

"Unfortunately, this is the second time we have had to file a case against dumped and subsidized imports of OTR tires," said USW International President Leo Gerard. "The first time we were successful, but Chinese producers and importers appear to be gaming the system to avoid the duties they owe. And now, subsidized producers in India and Sri Lanka have stepped in to get their own piece of the US market."

The USW has also been behind multiple other cases against Chinese tires. A separate trade case against passenger vehicle and light truck tire imports from China was filed in 2014 and is now covered by duty orders.

In addition, it filed AD and CVD petitions on January 29 this year on imports of truck and bus tires, and a preliminary injury determination is scheduled by the ITC on March 14, 2016.

TAGS: tax | business | India | Sri Lanka | anti-dumping | China | manufacturing | trade disputes | United States | import duty | trade

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