US Department Of Commerce Withdraws Double Anti-taxation Order Against China OTR Tires

- May 10, 2019-

According to the news just received by China Rubber, the US Department of Commerce issued a formal announcement yesterday to announce the withdrawal of anti-dumping and countervailing duty orders for Chinese off-highway tires (OTR), and imports from China after February 4, 2019. OTR tires will not be taxed as "double-reverse".


Some commentators said that since 2008, the United States has imposed more than 10 years of "double-reverse" tax on China's export of OTR tires, and the OTR exports under the "double-anti-cloud" are also decreasing year by year.


Taking the last review of the final ruling as an example, on April 13, 2017, the US Department of Commerce ruled that the anti-dumping and countervailing duty rates of Guizhou tires were 105.31% and 34.46%, respectively, and Xugong Tire was 33.08% and 46.01%, and the national anti-dumping tax rate was 105.31%.


In 2017, the “herringbone tread or herringbone tire with a tread width of ≥24 inches” was exported to the US for US$ 23.92 million, while the export value in 2018 was only US$ 4.5 million;


In 2017, the export value of “new pneumatic rubber tires for other agricultural or forestry vehicles and machinery” was US$66.52 million, compared with US$ 15.92 million in 2018.


The OTR tire "double-reverse" case involves enterprises such as Zhongce Rubber, Double Money Tire, Fengshen Tire and Tianjin Guolian. The US officially revoked the "complaint", which is undoubtedly a good thing for the relevant practitioners, which means that Regardless of the progress of the Sino-US trade war, this part of the cost will not increase.


 


OTR "double anti" case review


On June 18, 2007, the Titan Tire Corporation and the United States Steel Workers' Federation (USW) filed an indictment with the US Department of Commerce and the US International Trade Commission for off-highway originating in China. The tires launched anti-dumping and countervailing investigations.


On July 31, 2007, the US Department of Commerce decided to formally launch an anti-dumping and countervailing investigation against Chinese off-highway tires.


On September 4, 2008, the US Department of Commerce issued a double anti-taxation order, which decided to impose a 5.25%-210.48% anti-dumping duty and a 2.45%-14% countervailing duty on Chinese companies.


On February 4, 2014, the US Department of Commerce and the US International Trade Commission completed the first sunset review, and determined that if the tax order was revoked, dumping and subsidies would continue, and damage to the US off-highway tire industry would continue. Therefore decided to maintain the tax order.


On February 5, 2019, the US Department of Commerce launched the second sunset review. The US domestic off-highway tire manufacturer did not submit a request for a sunset review, so it determined that no US domestic industry intends to participate in the sunset review.


On February 21, 2019, the US Department of Commerce sent a letter to the US International Trade Commission stating that the anti-dumping tax order would be revoked. In the end, the US Department of Commerce issued a notice on May 7th, announcing the cancellation of the double anti-tax order, and the validity of the cancellation of the tax order dated February 4, 2019.