Some Tariff Relief Possible for Chinese Truck Tires

Truck tire makers in China are poised to get some tariff relief as the Department of Commerce conducts a regular review of the countervailing duties that were imposed in February 2019.

Before we dig into the details, let’s remember tariff investigations come in two phases — the preliminary phase, and then the final phase. This is the preliminary phase, so there’s still a possibility these numbers could change in the coming months as the investigation continues.

But, the preliminary numbers, scheduled to be published in the Federal Register on June 25, do indicate lower rates are a possibility. The DOC is using data from two exporters/producers as its guide: Prinx Chengshan (Shandong) Tire Co. Ltd (PCT) and Qingdao Ge Rui Da Rubber Co., Ltd. (GRT).

Since Feb. 15, 2019, medium truck and bus tires from China have been subject to both anti-dumping and countervailing duties as they reach the U.S. The anti-dumping rates (set at 9% for 256 specifically named tiremakers and 22.57% for all others) remain unchanged. This current review applies only to the countervailing duties, which are meant to offset subsidies government entities in China are paying to producers.

OK, here are the preliminary numbers:

For some perspective, the original 2019 rates started at 20.98% — that was the countervailing tariff assessed on Shanghai Huayi Group Corporation Ltd., which is the company that controls Double Coin.

Guizhou Tyre Import and Export Co. Ltd./Guizhou Tyre Co. Ltd. paid 63.34%

All others were assessed a tariff of 42.16%

Under the current review both Double Coin’s and Guizhou Tyre’s rates would drop to 16.76%.A history recapIf you’re thinking to yourself that truck tires from China had escaped tariffs, that was almost the case.

The investigation went through the preliminary and the final phases. Rates were set and reviewed and at the final step in the process, the International Trade Commission upended the whole process by voting 3-2 not to impose the tariffs after all, saying the imported tires weren’t injuring the domestic tire industry.

Then, the United Steelworkers union, which had instigated the whole investigation, took the case to court. In Nov. 2018 the Court of International Trade remanded and reversed the ITC’s ruling, sending the case back to the ITC for review and reconsideration. The ITC ultimately reversed its decision and tariffs have been collected on TBR tires from China since Feb. 15, 2019.The 'other' respondents*Here’s a list of the 41 respondents that would also pay the 16.76% rate.

Aeolus Tyre Co., Ltd.

Chaoyang Long March Tyre Co., Ltd.

Doublestar International Trading (Hongkong) Co., Limited

Giti Radial Tire (Anhui) Company

Giti Tire (Fujian) Company Ltd.

Giti Tire Global Trading Pte Ltd.

Guangrao Kaichi Trading Co., Ltd.

Guizhou Tyre Co., Ltd.

Guizhou Tyre Import and Export Co., Ltd.

Hefei Wanli Tire Co., Ltd.

Hongtyre Group Co.

Jiangsu General Science Technology Co., Ltd.

Koryo International Industrial Limited

Maxon Int’l Co., Limited

Megalith Industrial Group Co., Limited

Qingdao Awesome International Trade Co., Ltd

Qingdao Doublestar Overseas Trading Co., Ltd.

Qingdao Doublestar Tire Industrial Co., Ltd.

Qingdao Fullrun Tyre Corp. Ltd

Qingdao Jinhaoyang International Co., Ltd.

Qingdao Keter International Co., Limited

Qingdao Lakesea Tyre Co., Ltd

Qingdao Powerich Tyre Co., Ltd.

Qingdao Shinego Tire Tech Co., Limited (also known as Qingdao Shinego Tyre Tech Co., Ltd.)

Qingdao Sunfulcess Tyre Co., Ltd.

Shandong Habilead Rubber Co., Ltd.

Shandong Haohua Tire Co., Ltd.

Shandong Huasheng Rubber Co., Ltd

Shandong Hugerubber Co., Ltd.

Shandong Kaixuan Rubber Co., Ltd

Shandong Province Sanli Tire Manufactured Co., Ltd

Shandong Qilun Rubber Co., Ltd.

Shandong Transtone Tyre Co., Ltd

Shandong Wanda Boto Tyre Co., Ltd.

Shandong Yongsheng Rubber Group Co., Ltd.

Shanghai Huayi Group Corporation Limited

Shengtai Tyre Co., Ltd.

Sichuan Kalevei Technology Co., Ltd.

Tongli Tyre Co., Ltd.

Triangle Tyre Co., Ltd.

Weifang Shunfuchang Rubber and Plastic Products Co., Ltd.