The International Trade Commission (ITC) today affirmed the findings of the Department of Commerce (DOC) in its determination that certain new pneumatic off-the-road tires imported from India and Sri Lanka “materially injure” U.S. industry.
Like the DOC, the ITC determined that certain new OTR tires from these countries injure the U.S. economy by being sold in the U.S. at less than fair market value and/or subsidized by their respective governments of origin. As a result of the ITC’s affirmative determination, the DOC will move forward with an anti-dumping duty (AD) order on imports of OTR tires from India as well as countervailing duty (CVD) orders on imports from India and Sri Lanka.
The DOC found in its anti-dumping investigation that some OTR tires from India were sold at less than fair value. These companies were issued a 3.67% anti-dumping tariff. However, the DOC also found that “mandatory respondents Balkrishna Industries Limited had not sold certain new pneumatic off-the-road tires into the United States at less than fair value.” These two companies will not have anti-dumping duties.
From the DOC’s initial countervailing investigation on Indian tires, Balkrishna Industries Limited (BKT) will receive a rate of 5.36% and ATC Tires Private Ltd. a rate of 4.90%. All other exporters/producers from India have a rate of 5.06%. In the Sri Lanka CVD investigation the DOC set a subsidy rate of 2.18% for mandatory respondent Camso Loadstar (Private) Ltd. and all other producers/exporters in Sri Lanka.
The actions will not be retroactive. In a formal statement released today, the ITC “made negative findings with respect to critical circumstances with regard to subsidized imports of this product from India and Sri Lanka. As a result, goods that entered the United States from these countries prior to June 20, 2016 (the date of Commerce’s affirmative preliminary determinations), will not be subject to retroactive countervailing duties.”
The final report from the investigation is scheduled for release on Feb.23, 2017.
The United Steelworkers (USW) said this ruling is “welcomed by American tire workers.”
“Once again through the aggressive use of our trade laws, we have protected good-paying, family-supporting jobs and preserved market share for American employers from unfair and illegal trade practices,” said USW International Secretary-Treasurer Stan Johnson, in a statement.
“Today’s decision will trigger the imposition of duties on these dumped and subsidized tires. More than $200 million of these tires were flooding our market, displacing U.S. production and jobs. This is part of the higher-end of the market, with tires often selling for thousands of dollars. Every unfairly priced tire that is sold here in the United States puts our jobs in jeopardy.
“It should not be necessary for producers and workers to suffer injury and spend significant time and money on these cases. Our government has the authority to bring trade cases, but has been sitting on its hands, largely leaving the enforcement of our trade laws up to the private sector. It is time for government to put an end to unfair trade by making dramatic reforms to both our trade policy and enforcement strategies.”