US initiates antidumping, countervailing duty investigation on PVLT tyres from four Asian nations

US Department of Commerce

The US Department of Commerce (Commerce) has begun new antidumping (AD) and countervailing duty (CVD) investigations into the alleged dumping of passenger vehicle and light truck (PVLT) tyres from the Republic of Korea (Korea), Taiwan, Thailand, and the Socialist Republic of Vietnam (Vietnam) in the United States. Commerce also seeks to determine if producers of PVLT tyres in Vietnam are receiving unfair government subsidies.

In the AD investigations, Commerce will determine whether imports of PVLT tyres from Korea, Taiwan, Thailand, and Vietnam are being dumped in the US market at less than fair value. The alleged dumping margins are as follows: 42.95 – 195.20% for Korea; 20.57 – 116.14% for Taiwan; 106.36 – 217.50% for Thailand; 5.48 – 22.30% for Vietnam.

Final determinations by Commerce for the AD investigations are scheduled for January 25, 2021.

In the CVD investigation for Vietnam, Commerce will investigate 20 subsidy programs, including tax programs, government provision of goods for less than adequate remuneration, import substitution subsidies, grants, government provided loans and Vietnam’s allegedly undervalued currency. This is the first time that Commerce has ever initiated an investigation of alleged currency subsidies in relation to a foreign currency with a single exchange rate.

The preliminary CVD determination has been scheduled for August 26 and final determinations by Commerce scheduled for November 9.

Pending affirmative findings in these investigations, and if the US International Trade Commission (ITC) determines that dumped and/or unfairly subsidised imports of PVLT tyres from Korea, Taiwan, Thailand, and Vietnam materially injure or threaten material injury to the US industry, Commerce will impose duties on those imports based on the amount of dumping and/or unfair subsidisation found to exist.

During Commerce’s investigations, the ITC will conduct its own investigations into whether the US industry and its workforce are being injured by such imports. If the ITC preliminarily determines that there is reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue until the scheduled dates.

[The US Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing US trade laws through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.]

If Commerce preliminarily determines that dumping and/or unfair subsidisation is occurring, it will instruct US Customs and Border Protection to start collecting cash deposits from all US companies importing PVLT tyres from Korea, Taiwan, Thailand, and Vietnam, as appropriate.

However, if Commerce finds that products are not being dumped or unfairly subsidised, or the ITC finds in a final determination there is no injury to the US industry, then the investigations will be terminated, and no duties will be applied.