This morning the US International Trade Commission announced that its investigation has found “reasonable indication that an industry in the United States is materially injured or threatened with material injury by reason of imports from China of certain passenger vehicle and light truck tyres”.
The USW has petitioned for and received an extension from the US Department of Commerce, pushing back to November the deadline for completion of the preliminary determination on its antidumping and countervailing duty complaint targeting China-made consumer tyres imported into the US, Tire Review reports.
In its final determination on the tyre design patent infringement complaint that was filed by Toyo Tire & Rubber Co., Ltd. and Toyo Tire Holdings of Americas on 20 September 2013, the US International Trade Commission issued limited exclusion orders and cease-and-desist orders to the eight remaining respondents. These orders prohibit them from importing or selling any infringing tyres. Each respondent was found to be in default and in violation of the law prior to the 28 July determination.
Yesterday the United States International Trade Commission (USITC) determined there is a reasonable indication that imports of certain passenger car and light commercial vehicle tyres from China – tyres alleged to be subsidised and offered for sale in the US at less than fair value – materially injure or threaten to materially injure the country’s domestic industry. USITC chairman Meredith M. Broadbent, vice-chairman Dean A. Pinkert, and commissioners Irving A. Williamson, David S. Johanson, F. Scott Kieff, and Rhonda K. Schmidtlein voted in favour of continuing the investigation into these products.
Moves by United States trade authorities towards reintroducing duties on certain Chinese tyres have been applauded by the union representing many US tyre industry workers, yet China says this not only contradicts international trade rules and national law, but any new antidumping or countervailing duties that emerge from current investigations will also fail to achieve their intended result.
The US Department of Commerce Department is proceeding with the US United Steelworker’s case against Chinese tyre imports into America. The union is pushing for new import duties similar to those that were introduced in 2009 and has hailed the news that the case is continuing and as a significant step forward in the process.
The global tyre industry is keeping a watchful eye on the US International Trade Commission, which is set to make a preliminary decision on whether or not to enforce import duties on tyres produced in China. Preliminary arguments for and against this were made before the body on 24 June and since then the US Tire Industry Association (TIA) has also weighed in. However, ITC won’t make its initial ruling till 8 July.
The Tire Industry Association (TIA) is opposing the International Trade Commission (ITC) that would limit the import of Chinese-made passenger and light truck tyres into the US. TIA previously opposed a similar measure in 2009. According to a statement published today, the association “feels strongly that this measure, despite being well-intentioned, would not help in the preservation of manufacturing jobs, and would be harmful to consumers, as these tyres are often an affordable solution to those drivers with limited budgets. However, the association also reiterates its long-standing position that all tyres – regardless of country of origin – must be held to all applicable Federal Motor Vehicle Safety Standards.”
No sooner had the US issued a modification to its initial determination in the Sino Legend (Zhangjiagang) Chemical Co., Ltd. and SI Group Inc. intellectual property case (on 16 January) then Sino Legend replied with a statement of its intent to continue with US imports of tyres featuring this product. According to Sino Legend, the commission ruled that the majority of SI Group’s alleged trade secrets are unprotectable and rejected SI’s request to exclude Sino Legend SL-1805 and SL-7015 resins from US import. The ITC is also said to have struck down the originally recommended general exclusion order.
As Tyres & Accessories' November issue went to press President Barrack Obama and David Cameron were out banging the drum for American and British business in India and China respectively. 24 hours after Obama set foot in the subcontinent, the Sunday Telegraph's resident cartoonist was portraying the leaders of two of the richest countries in the western world as beggers seeking scraps from two so-called “emerging markets.”
President Barack Obama’s decision to apply a 35 per cent import duty on all passenger car and light truck tyres from China for a period of three years may have been intended to “remedy market disruption caused by a surge in [Chinese] tyre imports” into the US, but it has also provoked a sharp response from the Chinese ministry of commerce and played havoc with the share prices of Far Eastern tyre manufacturers. China’s state media said the US import duties would cost 100,000 jobs and $1 billion (£600 million).
Announcing the decision (on Friday 11 September 2009), the White House explained that the 35 per cent ad valorem levy would be placed in addition to the existing 4 per cent import duty on imports of Chinese-product passenger car and light truck tyres. The duty will reduce to 30 per cent ad valorem in the second year, and 25 per cent ad valorem the third year. The US International Trade Commission had recommended a 55 per cent tariff in the first year, 45 per cent in the second year and 35 per cent in the third year.
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