US initiates investigation of OTR tire imports

Washington – The US Department of Commerce has initiated an antidumping and countervailing duty investigation of pneumatic off-the-road tires from China and India, and a countervailing duty investigation of OTR tires from Sri Lanka.

Titan Tire Corp. and the United Steelworkers union filed a petition with the International Trade Commission 8 Jan. In antidumping and countervailing duty investigations, it is the role of Commerce to determine the rate of dumping and subsidy margins, and the ITC’s to determine whether the domestic injury is being materially injured because of dumping and subsidies.

The tires covered under the Commerce investigation are both tubeless and tube-type, radial and bias, original equipment and replacement, Commerce said in its 4 Feb fact sheet on the investigation.

Excluded from the investigation are unmounted Chinese OTR tires, which are covered under a previous antidumping and countervailing duty order from 2008. Titan and the USW were also the petitioners in this case, filing in 2007.

Also excluded are all non-OTR tires; recycled, retreaded and used tires; solid rubber and other non-pneumatic tires; aircraft tires; and turf, lawn and garden, and golf tires. Mining and construction tires with rim diameters of 39 inches or more are likewise excluded, Commerce said.

The alleged dumping margins in the case are 11.2 to 77.69 percent for Chinese tires, 10.77 to 76.45 percent for Indian tires, Commerce said. Estimated subsidies for all three countries were above de minimis, which Commerce defines as less than 1 percent for developed countries, less than 2 percent for developing countries.

The ITC held a preliminary hearing on the case 29 Jan. It is scheduled to make a preliminary determination 19 Feb and transmit its decision to Commerce 22 Feb.

If the ITC’s determination is affirmative, Commerce will make a preliminary determination on countervailing duties on or about 8 April, and on antidumping duties on or about 22 June. If the ITC makes a negative determination, the investigation will be terminated.