U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Passenger Vehicle and Light Truck Tires from the Republic Of Korea, Taiwan, Thailand, and the Socialist Republic of Vietnam
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether passenger vehicle and light truck (PVLT) tires from the Republic of Korea (Korea), Taiwan, Thailand, and the Socialist Republic of Vietnam (Vietnam) are being dumped in the United States, and to determine if producers in Vietnam are receiving unfair subsidies.
The petitions were filed by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (Pittsburgh).
In the AD investigations, Commerce will determine whether imports of PVLT tires from Korea, Taiwan, Thailand, and Vietnam are being dumped in the U.S. market at less than fair value. The alleged dumping margins are as follows:
- 42.95 – 195.20 percent for Korea
- 20.57 – 116.14 percent for Taiwan
- 106.36 – 217.50 percent for Thailand
- 5.48 – 22.30 percent for Vietnam
In the CVD investigation for Vietnam, Commerce will determine whether Vietnam producers of PVLT tires are receiving unfair government subsidies. 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.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized imports of PVLT tires from Korea, Taiwan, Thailand, and Vietnam materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The 2019 imports of PVLT tires from the countries under investigation were approximately valued as follows:
- $1.17 billion for Korea
- $373.0 million for Taiwan
- $1.96 billion for Thailand
- $469.6 million for Vietnam
During Commerce’s investigations, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations by July 17. If the ITC preliminarily determines that there is reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for August 26, and preliminary AD determinations scheduled for November 9, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing PVLT tires from Korea, Taiwan, Thailand, and Vietnam, as appropriate.
Final determinations by Commerce in these cases are scheduled for November 9, for the CVD investigation, and January 25, 2021, for the AD investigations, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds in a final determination there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 262 new AD and CVD investigations – a 245 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 529 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits those companies’ production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.