US sets preliminary countervailing duties on Chinese tires

The U.S. Commerce Department on Monday announced its preliminary affirmative determination in the countervailing duty (CVD) investigation against imports of certain passenger vehicle and light truck tires from China, a move signaling that it may pose punitive duties on the products.

The department said that producers and exporters of such products from China had received countervailing subsidies from 12. 5 percent to 81.29 percent.

As a result of the preliminary affirmative determinations, the Commerce Department will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary rates.

The department launched antidumping duty and CVD investigations against imports of such products from China in July 2014, in response to a request from two U.S labor organizations United Steelworkers and AFL-CIO-CLC. The department is scheduled to make its final determinations in April next year, unless the statutory deadline is extended.

Punitive duties would be imposed after both the Commerce Department and the U.S. International Trade Commission make affirmative final rulings. The USITC is scheduled to make its final determination in May 2015.

Imports of these products from China were estimated at about 2. 1 billion U.S. dollars last year, according to U.S. official data.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.