Quincy, Illinois – The US Department of Commerce's (DOC) final results on its review of imports of off-the-road tires from China during 2014-15 showed higher subsidies than previously thought, according to a statement from Titan International Inc.
The Quincy-based tire and wheel maker said the review of the dumping order for 2014-15 OTR imports and 2014 countervailing duties also showed that Chinese OTR tire producers continued to sell product for less-than-fair value in the US.
DOC found the subsidy levels increased dramatically since Commerce last reviewed the market, Titan said. The levels of subsidization ranged from 34.46 to 46.01%, compared with the prior levels of 2.52 to 5.65%. The dumping review also showed that OTR tires imported into the US by Chinese firms, were sold at levels below fair value ranging from 33.05 to 105.31%.
Titan said the practical effect of the findings is that the DOC will issue liquidation instruction for Customs to assess duties equal to the amount finally found — subject to judicial review. If that is more than the cash deposits posted at time of entry, importers are liable for the difference plus interest. And after the findings are posted in the Federal Register, the DOC will instruct US Customs to collect cash deposits on incoming entries from China reflecting the final rates found in this latest review.
Titan chairman Maurice Taylor said he believes Titan will see a positive impact in the aftermarket because of the determinations.
Paul Reitz, Titan's president and CEO said the "results confirm our belief that the levels of government subsidisation had significantly increased and that the amount of dumping has continued. The continued monitoring by the DOC of these orders and the imposition of accurate amounts of countervailing and antidumping duties is an important step in restoring conditions of fair trade."