[Federal Register Volume 86, Number 3 (Wednesday, January 6, 2021)]
[Notices]
[Pages 504-507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29301]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-828]
Passenger Vehicle and Light Truck Tires From the Socialist
Republic of Vietnam: Preliminary Affirmative Determination of Sales at
Less Than Fair Value, Postponement of Final Determination, and
Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that passenger vehicle and light truck tires (passenger tires) from the
Socialist Republic of Vietnam (Vietnam) are being, or are likely to be,
sold in the United States at less than fair value (LTFV). The period of
investigation is October 1, 2019 through March 31, 2020. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable January 6, 2021.
FOR FURTHER INFORMATION CONTACT: Jasun Moy or Robert Scully, AD/CVD
Operations, Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-8194 or (202) 482-0572,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on June 29,
2020.\1\ On October 16, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
December 29, 2020.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics included in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary 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 Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Passenger Vehicle and Light Truck Tires from the
Republic of Korea, Taiwan, Thailand, and the Socialist Republic of
Vietnam: Initiation of Less-Than-Fair-Value Investigations, 85 FR
38854 (June 29, 2020) (Initiation Notice).
\2\ See Passenger Vehicle and Light Truck Tires from the
Republic of Korea, Taiwan, Thailand, and the Socialist Republic of
Vietnam: Postponement of Preliminary Determinations in the Less-
Than-Fair-Value Investigations, 85 FR 65791 (October 16, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Passenger
Vehicle and Light Truck Tires from the Socialist Republic of
Vietnam,'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are passenger tires from
Vietnam. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
on the record of this investigation, and accompanying discussion and
analysis of all comments timely received, see the Preliminary Scope
Decision Memorandum.\6\ As discussed in the Preliminary Scope Decision
Memorandum, Commerce is preliminarily modifying the scope language as
it appeared in the Initiation Notice. See the revised scope in Appendix
I to this notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice, 85 FR at 38855.
\6\ See Memorandum, ``Passenger Vehicle and Light Truck Tires
from the Republic of Korea, Taiwan, Thailand, and the Socialist
Republic of Vietnam: Preliminary Scope Comments Decision
Memorandum,'' dated concurrently with this preliminary determination
(Preliminary Scope Decision Memorandum).
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The deadline to submit scope case briefs is established in the
Preliminary Scope Decision Memorandum. There will be no further
opportunity to comment on scope-related issues.\7\
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\7\ Case briefs and rebuttal briefs submitted in response to
this preliminary LTFV determination should not include scope-related
issues. See Preliminary Scope Decision Memorandum and the ``Public
Comment'' section of this notice.
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[[Page 505]]
Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices and
constructed export prices in accordance with sections 772(a) and 772(b)
of the Act, respectively. Because Vietnam is a non-market economy,
within the meaning of section 771(18) of the Act, Commerce has
calculated normal value in accordance with section 773(c) of the Act.
Furthermore, pursuant to section 776(a) and (b) of the Act, Commerce
has preliminarily relied upon facts otherwise available with adverse
inferences to determine the estimated weighted-average dumping margin
for the Vietnam-wide entity. For a full description of the methodology
underlying Commerce's preliminary determination, see the Preliminary
Decision Memorandum.
Combination Rates
In the Initiation Notice,\8\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\9\ In this investigation, we assigned
producer/exporter combination rates for respondents eligible for
separate rates.
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\8\ See Initiation Notice, 85 FR at 38858.
\9\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' April 5, 2005 (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Cash deposit rate
Estimated weighted- (adjusted for
Exporter Producer average dumping subsidy offset)
margin (percent) (percent)
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Kenda Rubber (Vietnam) Co. Ltd........... Kenda Rubber (Vietnam) Co. 0.00 0.00
Ltd.
Sailun Group (HongKong) Co., Limited/ Sailun (Vietnam) Co., Ltd... 0.00 0.00
Sailun Tire Americas Inc.
Bridgestone Corporation.................. Bridgestone Tire 0.00 0.00
Manufacturing Vietnam LLC.
Bridgestone Tire Manufacturing Vietnam Bridgestone Tire 0.00 0.00
LLC. Manufacturing Vietnam LLC.
Kumho Tire (Vietnam) Co., Ltd............ Kumho Tire (Vietnam) Co., 0.00 0.00
Ltd.
The Yokohama Rubber Co., Ltd............. Yokohama Tyre Vietnam Co.... 0.00 0.00
Vietnam-Wide Entity...................... ............................ 22.30 22.27
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted-average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) For
the producer/exporter combinations listed in the table above, except
those specified for Kenda Rubber (Vietnam) Co. Ltd. (Kenda) and Sailun
Group (HongKong) Co., Limited/Sailun Tire Americas Inc. (Sailun), the
cash deposit rate is equal to the estimated weighted-average dumping
margin listed for that combination in the table; (2) for all
combinations of Vietnam producers/exporters of merchandise under
consideration that have not established eligibility for their own
separate rates, the cash deposit rate will be equal to the estimated
weighted-average dumping margin established for the Vietnam-wide
entity; and (3) for all third-country exporters of merchandise under
consideration not listed in the table above, the cash deposit rate is
the cash deposit rate applicable to the Vietnam producer/exporter
combination (or the Vietnam-wide entity) that supplied that third-
country exporter.
Because the estimated weighted-average dumping margins for Kenda
and Sailun in the above-specified producer/exporter combinations are
zero or de minimis (i.e., less than two percent), Commerce will not
direct CBP to suspend liquidation of entries of subject merchandise
from those producer/exporter combinations. Entries of subject
merchandise from these exporters supplied by any other producer, or
from these producers that supplied any other exporter, or from third-
country exporters that sourced from these producer/exporter
combinations, are subject to suspension of liquidation and provisional
measures at the cash deposit rate established for the Vietnam-wide
entity.
As explained in the Preliminary Decision Memorandum, in accordance
with section 735(a)(4) of the Act and 19 CFR 351.204(e)(1), should the
final estimated weighted-average dumping margins be zero or de minimis
for Kenda or Sailun in the producer/exporter combination identified
above, and should the investigation result in an antidumping duty order
pursuant to section 736 of the Act, entries of merchandise from those
producer/exporter combinations will be excluded from the order.\10\
Such exclusions will not be applicable to merchandise exported to the
United States by any other producer/exporter combinations or by third-
country exporters that sourced from the excluded producer/exporter
combinations.
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\10\ Specifically, Commerce only intends to exclude from the
order the mandatory respondents with a final estimated weighted-
average dumping margin of zero or de minimis. If any of the separate
rate companies are assigned a final estimated weighted-average
dumping margin of zero or de minimis, Commerce does not intend to
exclude such companies from the order.
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Commerce normally adjusts cash deposits for estimated antidumping
duties by the amount of domestic subsidy pass-through and export
subsidies countervailed in a companion countervailing duty (CVD)
proceeding, when CVD provisional measures are in effect. Accordingly,
where Commerce preliminarily made an affirmative determination for
domestic subsidy pass-through or export subsidies, Commerce has offset
the estimated weighted-average dumping margin by the appropriate rates.
Any such adjusted cash deposit rate may be found in the Preliminary
Determination section above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation,
[[Page 506]]
Commerce will direct CBP to begin collecting cash deposits at a rate
equal to the estimated weighted-average dumping margins calculated in
this preliminary determination unadjusted for export subsidies at the
time the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce is unable to conduct
on-site verification in this investigation. Accordingly, we intend to
verify the information relied upon in making the final determination
through alternative means in lieu of an on-site verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of case briefs and
written comments on non-scope issues at a later date. Rebuttal briefs,
limited to issues raised in case briefs, may be submitted no later than
seven days after the deadline date for case briefs.\11\ Commerce has
modified certain of its requirements for serving documents containing
business proprietary information until further notice.\12\ Pursuant to
19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or
rebuttal briefs in this investigation are encouraged to submit with
each argument: (1) A statement of the issue; (2) a brief summary of the
argument; and (3) a table of authorities.
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\11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\12\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020) (Temporary Rule); and
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date and time of
the hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On December 1 and 7, 2020, pursuant to 19 CFR 351.210(e), Sailun
and Kenda requested, respectively, that Commerce postpone the final
determination and that provisional measures be extended for a period
not to exceed six months.\13\ In accordance with section 735(a)(2)(A)
of the Act and 19 CFR 351.210(b)(2)(ii), because (1) the preliminary
determination is affirmative; (2) the requesting exporters account for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of publication of this preliminary determination, pursuant to
section 735(a)(2) of the Act.
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\13\ See Sailun's Letter, ``Sailun's Request to Extend the Final
Determination: Antidumping Duty Investigation of Passenger Vehicle
and Light Truck Tires (``PVLT'') from Vietnam (A-552-828),'' dated
December 1, 2020; see also Kenda's Letter ``Investigation of
Passenger Vehicle and Light Truck Tires from Vietnam: Request to
Extend the Final Determination,'' dated December 7, 2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of the subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: December 29, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation is passenger vehicle and light
truck tires. Passenger vehicle and light truck tires are new
pneumatic tires, of rubber, with a passenger vehicle or light truck
size designation. Tires covered by this investigation may be tube-
type, tubeless, radial, or non-radial, and they may be intended for
sale to original equipment manufacturers or the replacement market.
Subject tires have, at the time of importation, the symbol
``DOT'' on the sidewall, certifying that the tire conforms to
applicable motor vehicle safety standards. Subject tires may also
have the following prefixes or suffix in their tire size
designation, which also appears on the sidewall of the tire:
Prefix designations:
P--Identifies a tire intended primarily for service on passenger
cars.
LT--Identifies a tire intended primarily for service on light
trucks.
Suffix letter designations:
LT--Identifies light truck tires for service on trucks, buses,
trailers, and multipurpose passenger vehicles used in nominal
highway service.
All tires with a ``P'' or ``LT'' prefix, and all tires with an
``LT'' suffix in their sidewall markings are covered by these
investigations regardless of their intended use.
[[Page 507]]
In addition, all tires that lack a ``P'' or ``LT'' prefix or
suffix in their sidewall markings, as well as all tires that include
any other prefix or suffix in their sidewall markings, are included
in the scope, regardless of their intended use, as long as the tire
is of a size that fits passenger cars or light trucks. Sizes that
fit passenger cars and light trucks include, but are not limited to,
the numerical size designations listed in the passenger car section
or light truck section of the Tire and Rim Association Year Book, as
updated annually. The scope includes all tires that are of a size
that fits passenger cars or light trucks, unless the tire falls
within one of the specific exclusions set out below.
Passenger vehicle and light truck tires, whether or not attached
to wheels or rims, are included in the scope. However, if a subject
tire is imported attached to a wheel or rim, only the tire is
covered by the scope.
Specifically excluded from the scope are the following types of
tires:
(1) Racing car tires; such tires do not bear the symbol ``DOT''
on the sidewall and may be marked with ``ZR'' in size designation;
(2) pneumatic tires, of rubber, that are not new, including
recycled and retreaded tires;
(3) non-pneumatic tires, such as solid rubber tires;
(4) tires designed and marketed exclusively as temporary use
spare tires for passenger vehicles which, in addition, exhibit each
of the following physical characteristics:
(a) The size designation and load index combination molded on
the tire's sidewall are listed in Table PCT-1R (``T'' Type Spare
Tires for Temporary Use on Passenger Vehicles) or PCT-1B (``T'' Type
Diagonal (Bias) Spare Tires for Temporary Use on Passenger Vehicles)
of the Tire and Rim Association Year Book,
(b) the designation ``T'' is molded into the tire's sidewall as
part of the size designation, and,
(c) the tire's speed rating is molded on the sidewall,
indicating the rated speed in MPH or a letter rating as listed by
Tire and Rim Association Year Book, and the rated speed is 81 MPH or
a ``M'' rating;
(5) tires designed and marketed exclusively as temporary use
spare tires for light trucks which, in addition, exhibit each of the
following physical characteristics:
(a) The tires have a 265/70R17, 255/80R17, 265/70R16, 245/70R17,
245/75R17, 265/70R18, or 265/70R18 size designation;
(b) ``Temporary Use Only'' or ``Spare'' is molded into the
tire's sidewall;
(c) the tread depth of the tire is no greater than 6.2 mm; and
(d) Uniform Tire Quality Grade Standards (``UTQG'') ratings are
not molded into the tire's sidewall with the exception of 265/70R17
and 255/80R17 which may have UTGC molded on the tire sidewall;
(6) tires designed and marketed exclusively for specialty tire
(ST) use which, in addition, exhibit each of the following
conditions:
(a) The size designation molded on the tire's sidewall is listed
in the ST sections of the Tire and Rim Association Year Book,
(b) the designation ``ST'' is molded into the tire's sidewall as
part of the size designation,
(c) the tire incorporates a warning, prominently molded on the
sidewall, that the tire is ``For Trailer Service Only'' or ``For
Trailer Use Only'',
(d) the load index molded on the tire's sidewall meets or
exceeds those load indexes listed in the Tire and Rim Association
Year Book for the relevant ST tire size, and
(e) either
(i) the tire's speed rating is molded on the sidewall,
indicating the rated speed in MPH or a letter rating as listed by
Tire and Rim Association Year Book, and the rated speed does not
exceed 81 MPH or an ``M'' rating; or
(ii) the tire's speed rating molded on the sidewall is 87 MPH or
an ``N'' rating, and in either case the tire's maximum pressure and
maximum load limit are molded on the sidewall and either
(1) both exceed the maximum pressure and maximum load limit for
any tire of the same size designation in either the passenger car or
light truck section of the Tire and Rim Association Year Book; or
(2) if the maximum cold inflation pressure molded on the tire is
less than any cold inflation pressure listed for that size
designation in either the passenger car or light truck section of
the Tire and Rim Association Year Book, the maximum load limit
molded on the tire is higher than the maximum load limit listed at
that cold inflation pressure for that size designation in either the
passenger car or light truck section of the Tire and Rim Association
Year Book;
(7) tires designed and marketed exclusively for off-road use and
which, in addition, exhibit each of the following physical
characteristics:
(a) The size designation and load index combination molded on
the tire's sidewall are listed in the off-the-road, agricultural,
industrial or ATV section of the Tire and Rim Association Year Book,
(b) in addition to any size designation markings, the tire
incorporates a warning, prominently molded on the sidewall, that the
tire is ``Not For Highway Service'' or ``Not for Highway Use'',
(c) the tire's speed rating is molded on the sidewall,
indicating the rated speed in MPH or a letter rating as listed by
the Tire and Rim Association Year Book, and the rated speed does not
exceed 55 MPH or a ``G'' rating, and
(d) the tire features a recognizable off-road tread design;
(8) Tires designed and marketed for off-road use as all-terrain-
vehicle (ATV) tires or utility-terrain-vehicle (UTV) tires, and
which, in addition, exhibit each of the following characteristics:
(a) The tire's speed rating is molded on the sidewall,
indicating the rated speed in MPH or a letter rating as listed by
the Tire and Rim Association Year Book, and the rated speed does not
exceed 87 MPH or an ``N'' rating, and
(b) both of the following physical characteristics are
satisfied:
(i) The size designation and load index combination molded on
the tire's sidewall does not match any of those listed in the
passenger car or light truck sections of the Tire and Rim
Association Year Book, and
(ii) The size designation and load index combination molded on
the tire's sidewall matches any of the following size designation
(American standard or metric) and load index combinations:
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Load
American standard size Metric size index
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26x10R12............................. 254/70R/12.............. 72
27x10R14............................. 254/65R/14.............. 73
28x10R14............................. 254/70R/14.............. 75
28x10R14............................. 254/70R/14.............. 86
30X10R14............................. 254/80R/14.............. 79
30x10R15............................. 254/75R/15.............. 78
30x10R14............................. 254/80R/14.............. 90
31x10R14............................. 254/85R/14.............. 81
32x10R14............................. 254/90R/14.............. 95
32x10R15............................. 254/85R/15.............. 83
32x10R15............................. 254/85R/15.............. 94
33x10R15............................. 254/90R/15.............. 86
33x10R15............................. 254/90R/15.............. 95
35x9.50R15........................... 241/105R/15............. 82
35x10R15............................. 254/100R/15............. 97
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The products covered by this investigation are currently
classified under the following Harmonized Tariff Schedule of the
United States (HTSUS) subheadings: 4011.10.10.10, 4011.10.10.20,
4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60,
4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10.
Tires meeting the scope description may also enter under the
following HTSUS subheadings: 4011.90.10.10, 4011.90.10.50,
4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50,
8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.60,
8708.70.60.30, 8708.70.60.45, and 8708.70.60.60. While HTSUS
subheadings are provided for convenience and for customs purposes,
the written description of the subject merchandise is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of Investigation
V. Scope Comments
VI. Affiliation and Single Entity Treatment
VII. Application of Facts Available and Use of Adverse Inferences
VIII. Determination Not to Select KTV as a Voluntary Respondent
IX. Discussion of the Methodology
X. Adjustment Under Section 777A(F) of the Act
XI. Adjustment to Cash Deposit Rate for Export Subsidies
XII. Currency Conversion
XIII. Recommendation
[FR Doc. 2020-29301 Filed 1-5-21; 8:45 am]
BILLING CODE 3510-DS-P