US sets preliminary duties on Chinese tires

Washington — The US department of commerce has set the preliminary countervailing duty subsidy for Chinese consumer tires at 15.69 percent, with a final decision on the levy amount scheduled for 6 April, 2015.

From next week, US customs officials are set to require cash deposits based on the preliminary rates.

Meanwhile, US authorities are still studying anti-dumping duties, with a preliminary decision due by 21 Jan, a commerce department spokesman said.

The countervailing duties will be retroactive 90 days from the introduction date, the spokesman said.

Exceptions, though, are Cooper Kunshan China Tire Co. Ltd and Giti Tire Fujian Co. Ltd, which were given separate countervailing duties — 12.5 and 17.69 percent, respectively.

Both companies were also found to have not increased their exports to the US substantially since the original announcement of the commerce department investigation.

However, the commerce department set a separate duty for Shandong Yongsheng Rubber Group Co. Ltd of 81.29 percent.

Commerce will continue to look into the countervailing duties issue and could change or even eliminate the duties, depending on its further findings.