U.S. Secretary of Commerce Wilbur Ross has announced an affirmative preliminary determination in the countervailing duty (CVD) investigation of PLT tires from Vietnam.
The Commerce Department preliminarily determined that exporters and producers from Vietnam received counter available subsidies with rates ranging from 6.23-10.08%.
Among the subsidies preliminarily countervailed is Vietnam’s undervalued currency – making this the first time that Commerce has ever made an affirmative CVD determination regarding a foreign currency with a unitary exchange rate.
As a result of the decision, the commerce department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of passenger tires from Vietnam based on these preliminary rates noted above.
“Today’s preliminary determination represents an important step forward for the America First trade agenda,” said Secretary Ross. “The Trump administration remains vigilant against foreign actors that take advantage of American workers and businesses, and we will continue addressing this issue to ensure American industry competes on a level playing field.”
The petitioner is the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union, AFL-CIO, CLC. The company is headquartered in Pittsburgh, PA.
The commerce department is scheduled to announce its final determination in this case on or about March 16, 2021. This deadline may be extended, the department said.
If the department makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about April 30, 2021.
If the department makes an affirmative final determination and the ITC also makes an affirmative final injury determination, Commerce will issue a CVD order, in which the department will review of merchandise imported into the U.S. to determine if imports are being sold at less than fair value (i.e., dumped) or benefiting from unfair subsidization.
If the department makes a negative final determination of countervailable subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.
In 2019, imports of passenger tires from Vietnam were valued at approximately $469.6 million.
Commerce is also conducting antidumping duty (AD) investigations of passenger tires from Korea, Taiwan, Thailand, and Vietnam. The preliminary determinations in these investigations are scheduled to be announced on Dec. 29.
