Certain New Pneumatic Off-the-Road Tires From India: Final Results of Countervailing Duty Administrative Review; 2022

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Federal RegisterOct 22, 2024
89 Fed. Reg. 84331 (Oct. 22, 2024)
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    Department of Commerce International Trade Administration
  • [C-533-870]
  • AGENCY:

    Enforcement and Compliance, International Trade Administration, Department of Commerce.

    SUMMARY:

    The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers/exporters of certain new pneumatic off-the-road tires (OTR Tires), from India during the period of review (POR) January 1, 2022, through December 31, 2022.

    DATES:

    Applicable October 22, 2024.

    FOR FURTHER INFORMATION CONTACT:

    Mark Hoadley, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3148.

    SUPPLEMENTARY INFORMATION:

    Background

    On April 5, 2024, Commerce published the preliminary results of this administrative review. On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. On August 6, 2024, we extended the time limit for these final results to October 9, 2024. For a description of the events that occurred since the Preliminary Results, see the Issues and Decision Memorandum.

    See Certain New Pneumatic Off-The-Road Tires from India: Preliminary Results of Countervailing Duty Administrative Review; 2022, 89 FR 23969 (April 5, 2024) ( Preliminary Results).

    See Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024.

    See Memorandum, “Extension of Deadline for Final Results of Countervailing Duty Administrative Review,” dated August 6, 2024.

    See Memorandum, “Issues and Decision Memorandum for the Final Results in the Countervailing Duty Administrative Review of Off-the-Road Tires from India; 2022,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).

    Scope of the Order

    See Certain New Pneumatic Off-the-Road Tires from India and Sri Lanka: Amended Final Affirmative Countervailing Duty Determination for India and Countervailing Duty Orders,82 FR 12556 (March 6, 2017) ( Order).

    The products covered by the order are OTR Tires from India. For a full description of the scope of the Order, see the Issues and Decision Memorandum.

    Analysis of Comments Received

    All issues raised in the parties' briefs are addressed in the Issues and Decision Memorandum. A list of the issues addressed is attached to this notice at Appendix I. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.

    Changes Since the Preliminary Results

    Based on comments received from interested parties and record information, we made certain changes from the Preliminary Results regarding the subsidy calculations for ATC Tires Private Limited (ATC) and Balkrishna Industries Ltd. (BKT). These changes are explained in the Issues and Decision Memorandum.

    Methodology

    Commerce conducted this administrative review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each subsidy program found countervailable, Commerce finds that there is a subsidy, i.e., a government-provided financial contribution that gives rise to a benefit to the recipient, and that the subsidy is specific. For a description of the methodology underlying all of Commerce's conclusions, including any determination that relied upon the use of adverse facts available pursuant to section 776(a) and (b) of the Act, see the Issues and Decision Memorandum.

    See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.

    Companies Not Selected for Individual Review

    The Act and Commerce's regulations do not directly address the establishment of a rate to be applied to companies not selected for individual examination when Commerce limits its examination in an administrative review pursuant to section 777A(e)(2) of the Act. Generally, Commerce looks to section 705(c)(5) of the Act, which provides instructions for determining the all-others rate in an investigation, for guidance when calculating the rate for companies that were not selected for individual examination in an administrative review. Section 777A(e)(2) of the Act provides that “the individual countervailable subsidy rates determined under subparagraph (A) shall be used to determine the all-others rate under section 705(c)(5) {of the Act}.” Under section 705(c)(5)(A) of the Act, the all-others rate is normally “an amount equal to the weighted average of the countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero or de minimis countervailable subsidy rates, and any rates determined entirely {on the basis of facts available}.”

    Accordingly, to determine the rate for companies not selected for individual examination, Commerce's practice is to weight average the net subsidy rates for the selected mandatory respondents, excluding rates that are zero, de minimis, or based entirely on facts available. We determine that ATC received countervailable subsidies that are above de minimis and are not based entirely on facts available. Therefore, we determine to apply the net subsidy rates calculated for ATC. The companies for which a review was requested, which were not selected as mandatory respondents or found to be cross-owned with a mandatory respondent, are listed in Appendix II.

    See, e.g., Certain Pasta from Italy: Final Results of the 13th (2008) Countervailing Duty Administrative Review,75 FR 37386, 37387 (June 29, 2010).

    Final Results of Review

    We determine that the following net countervailable subsidy rates exist for the period January 1, 2022, through December 31, 2022:

    Producer/exporter Subsidy rate (percent ad valorem)
    ATC Tires Private Limited 1.70
    Balkrishna Industries Ltd * 0.34
    Non-Selected Companies Under Review 1.70
    * De minimis.

    See Appendix II of this notice for a list of all companies subject to this review that were not selected for individual examination and to which Commerce has assigned the non-examined company rate.