Commerce sets countervailing duties for Chinese tire imports

The Commerce Department this week has determined that automobile and light truck tires from China are subsidized by the Chinese government.    The Commerce Department this week has determined that automobile and light truck tires from China are subsidized by the Chinese government and will begin assessing countervailing duties on these imports.
   Countervailble subsidies are financial assistance from foreign governments that benefit production and are contingent on export performance or the use of domestic goods over imported goods.
   Commerce noted a preliminary subsidy rate of 17.69 percent for GITI Tire (Fujian) Co., 12.5 percent for Cooper Kunshan Tire Co., and 81.29 percent for Shandong Yongsheng Rubber Group Co. All other Chinese exporters of tires have been assigned a premilinary subsidy rate of 15.69 percent.
   As a result of its determination, Commerce has instructed Customs and Border Protection to require cash deposits based on these preliminary rates.
   It’s estimated that in 2013, U.S. imports of Chinese-made passenger vehicle and light truck tires reached $2.1 billion.
   Commerce plans to announce its final determination in this countervailing duty investigation by April 6, 2015. 
   If Commerce makes an affirmative final determination, and the U.S. International Trade Commission makes a similar determination, Commerce will then issue a countervailing duty order. If either Commerce or the ITC’s final determinations are negative, no countervailing duty order will be issued. ITC is scheduled to make its final determination about 45 days after Commerce issues its final determination.
   The petitioner for the countervailing duty investigation included United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.