USA approves anti-dumping duties on tyres from 4 countries

Anti-dumping duties as high as 98% may be applied to passenger vehicle and light truck tyres (passenger tyres) entering the USA from South Korea, Taiwan, Thailand and Vietnam. The U.S. Department of Commerce announced on 30 December that it will instruct U.S. Customs and Border Protection to collect cash deposits from importers of these products.

This decision is based upon Commerce’s preliminary determination that exporters have dumped passenger tyres in the United States at rates of 14.24 to 38.07 per cent for South Korea, 52.42 to 98.44 per cent for Taiwan, 13.25 to 22.21 per cent for Thailand, and 0 to 22.30 per cent for Vietnam. Cash deposits collected from exporters will be based upon these rates.

Taiwan

Taiwanese tyre makers face the heftiest duties. Exports from Nankang Rubber Tire Corp. Ltd. will attract anti-dumping duties of 98.44 per cent, while duties of 52.42 per cent will be applied to tyres made in Taiwan by Cheng Shin Rubber Ind. Co. Ltd. Duties for other manufacturers’ Taiwan-made tyres is 88.82 per cent.

South Korea

Duties for passenger tyres from South Korea begin at 14.24 per cent for Nexen Tire Corporation and go up to 38.07 per cent for tyres made by Hankook Tire & Technology Co. Ltd. All other passenger tyres from South Korea will attract a 27.81 per cent anti-dumping duty.

Thailand

Tyres from Sumitomo Rubber (Thailand) Co., Ltd. receive a 13.25 per cent anti-dumping duty, while the duty for tyres from LLIT Thailand Co., Ltd. is 22.21 per cent. An anti-dumping duty of 16.66 per cent applies to all other passenger tyres from Thailand.

Vietnam

Passenger tyres exported from Vietnam attract anti-dumping duties of 22.27 per cent, with several notable exceptions. Exporters of tyres made in Vietnam by Bridgestone, Kumho Tire and Yokohama Rubber subsidiaries do not need to pay a cash deposit.

Final determination in May

Commerce began its investigation into tyres exported from these markets after the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC filed a petition on 13 May 2020. It will announce its final determinations in these cases on or about 14 May 2021, unless this deadline is extended.

If Commerce’s final determinations are affirmative, the U.S. International Trade Commission (ITC) will make its final injury determinations on or about 28 June 2021. Should these also be affirmative, Commerce will issue anti-dumping duty orders.If Commerce’s final determinations are affirmative, the U.S. International Trade Commission (ITC) will make its final injury determinations on or about 28 June 2021. Should these also be affirmative, Commerce will issue anti-dumping duty orders. The investigations will end and no orders will be issued should either Commerce or the ITC deliver a negative ruling.

Imports of passenger tyres from the four countries in question amounted to almost US$4 billion in 2019, with imports from Thailand amounting to $1.96 billion, South Korea $1.17 billion, Vietnam $469.6 million and Taiwan $373.0 million.

Concurrent countervailing investigation

In addition to the above measures, Commerce is now investigating whether a case exists to introduce countervailing duties on passenger tyres from Vietnam. In November it announced the preliminary determination that exporters and producers from Vietnam received counter available subsidies with rates ranging from 6.23 per cent to 10.08 per cent. Commerce will announce its final determination in this case on or about 16 March 2021, and if affirmative the ITC will make its final injury determination at the end of April.