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February 11, 2021 02:34 PM

Commerce reduces import duty for Cheng Shin/Maxxis

Tire Business Report
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    WASHINGTON—The Department of Commerce has cut the antidumping import duties imposed on passenger and light truck tires shipped to the U.S from Taiwan by Cheng Shin Rubber Ind. Co. Ltd./Maxxis International by nearly 20 percentage points, in response to appeals filed by the company.

    The duty for Cheng Shin drops to 33.33 percent from 52.42 percent, Commerce said, because the agency made "significant ministerial errors regarding Cheng Shin's arm's-length test results and inclusion of Channel 3 sales in the home market sales database."

    At the same time, Commerce dropped the "all others" duty rate—which applies to all companies in Taiwan other than Cheng Shin and Nankang Rubber Tire Corp. Ltd.—to 84.33 percent from 88.82 percent in response to petitions filed by Nankang.

    Commerce has notified Customers and Border Patrol that the collection of cash deposits related to these duties will be revised according to the amended rates retroactively to Jan. 6, the date of publication of the preliminary determination.

    Ironically, Nankang's rate stays at 98.44 percent even though its petition resulted in a change in the all others rate.

    The duties are being imposed in response to petitions filed in May 2020 by the United Steelworkers union, alleging that passenger and light truck tires imported to the U.S. from South Korea, Taiwan, Thailand and Vietnam were being "dumped and subsidized" at rates as high as 217 percent.

    Commerce ultimately ruled that duties were in order, publishing its preliminary determination in the case in late December.

    The duties published by Commerce are:

    • South Korea: Hankook Tire & Technology Co. Ltd.—38.07 percent; Nexen Tire Corp.—14.14 percent; all others—27.81 percent
    • Taiwan: Cheng Shin Rubber Ind. Co. Ltd.—52.42 percent (now revised); Nankang Rubber Tire Corp. Ltd.— 98.44 percent; all others—88.82 percent (now revised);
    • Thailand: LLIT Thailand Co. Ltd.—22.21 percent; Sumitomo Rubber (Thailand) Co. Ltd.—13.25 percent; all others—16.66 percent.
    • Vietnam: countrywide entity—22.30 percent. Excluded are: Sailun Vietnam Co. Ltd.; Kenda Rubber (Vietnam) Co. Ltd.; Bridgestone Tire Manufacturing Vietnam L.L.C.; Kumho Tire (Vietnam) Co. Ltd.; and Yokohama Tyre Vietnam Co. Ltd.

    Cheng Shin is represented in the U.S. by Maxxis International - USA of Suwanee, Ga.

    Related Article
    Commerce OKs antidumping duties on tires from S. Korea, Taiwan, Thailand, Vietnam
    USW opposes Taiwan tire makers' dumping counterproposal
    Taiwan tire makers propose settlement of import duties case
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