Import Tariffs
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Chinese truck tyre tariffs annulled
The Court of Justice of The European UnionAnti-dumping and anti-subsidy tariffs imposed against Chinese-produced truck tyres in 2018 must be annulled, according to a judgement published by the European Court of Justice on 4 May 2022. Tyres & Accessories understands that the verdict can be appealed between now and July, but unless that appeal is successful, the annulment of anti-dumping tariffs against Chinese-produced truck tyres will result in increased imports and sales of those products.
Kumho investing $300 million in tyre factory expansion plans
Kumho Tire Co is planning to invest some 340 billion won (£217 million; 255 million euros; US$298 million) in expanding its tyre production facilities in Vietnam. The planned investment aimed at bracing for an increase in demand from North American markets and mitigating tariff-related price pressure, according to local news sources.
USA retains duties on PLT tyres
Tyrepress.com / Stephen GoodchildThe USA will continue to apply anti-dumping and countervailing duties to passenger vehicle and light truck (PLT) tyres from China. The U.S. International Trade Commission (USITC) decided against ending the charging of duties, which have applied to these products since 2015, after determining that doing so would “likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.” Unsurprisingly, the United Steelworkers union applauds the decision.
Tyre importers should plan for lack of space on ships and freight increases
Matthew Cassidy on UnsplashBack in April, Tyres & Accessories spoke to leading supplier of freight forwarding services to the UK tyre sector, Maritime Cargo Services about the perfect storm of circumstances complicating life for tyre importers. Then it was difficult to anticipate the logistical problems the industry would face by the end of the first quarter – at least far enough ahead to sidestep the issues entirely. Even armed with the expectation of disruption, the pressure has built at British ports throughout the year, especially in the last quarter as Covid began to spike again. As a result, Honda UK’s suspension of production became a high-profile symptom of the catalogue of issues causing bottlenecking and ultimately delays in the supply chain. With the end of the Brexit transition coming amidst the second spike of Covid-19 transmissions on 31 December, T&A asked MCS again about what difficulties distribution businesses need to plan for this winter.
SMMT: Deal with EU necessary to support green momentum
The Society of Motor Manufacturers and Traders (SMMT) has again urged both sides to re-engage the Brexit negotiation process with vigour in order to achieve a satisfactory deal. Bringing its latest calculations to the table, the industry association stresses that ‘no deal’ is a high stake gamble not only for the automotive sector but also for hopes of a green recovery from the coronavirus crisis.
New UK Global Tariff sees tyre duty reduced from 4.5% to 4.0%
PexelsThe UK Department for International Trade has announced a new UK Global Tariff (UKGT). Announced on 19 May 2020, this replaces the EU’s Common External Tariff on 1 January 2021 at the end of the Brexit Transition Period. As it pertains to the tyre business, while there are various categories, the announcement basically means the new UKGT sees tyre duty reduced from 4.5% to 4.0%. Camel back rubber for use in retreading stays at 0%, while duties cushion industrial tyres are reduced to 2.0% from 2.5%.
China now in 3rd place as source for EU truck tyre imports
In previous features on commercial vehicle tyres, Tyres & Accessories has noted the varied effects European Union tariffs on product manufactured in China have had on the market. Questioning whether the tariffs have “worked” is a complex question, because their effect on new tye segmentation and retreads have been varied across Europe’s major markets. Truck tyre markets in France and Germany reacted in very different ways to the UK, at least partially because the latter market was contracting anyway.
Aufine offering Thai-made truck tyres
Chinese tyre maker Aufine is now offering its customers a way to avoid tariffs on commercial vehicle tyres by selling a range produced in Thailand.
Sailun Group extends capacity expansion project
Sailun Group Co., Ltd. has issued a new timetable for the completion of its project to add capacity for larger rim passenger car and light commercial vehicle tyres at its Dongying factory in China. The self-funded investment to add 15 million units of capacity will now be implemented by December 2020 rather than this year, as originally planned. According to Sailun Group, the level of investment in the project and proposed usage of the funds remains the same.
USITC: Chinese truck tyres materially injure US
The US International Trade Commission filed their remand determinations to the US Court of International Trade on January 30, 2019. By a majority of 3-2, the Commissioners have determined:
EU publishes definitive anti-subsidy and updated anti-dumping rates
The European Union has published its definitive decision relating to anti-subsidy duties imposed on Chinese-produced truck tyres imported into the continent. This follows the EU’s final decision on anti-dumping duties, which was released on 18 October 2018. In short, the latest document (which runs to well over 120 pages) demonstrates how large subsidies have supported some Chinese tyre makers. However, it doesn’t mean the overall per tyre rate importers have to pay will change.
EU rejects claims Pirelli isn’t related to CNRC and Aeolus
Having published its definitive decision on Chinese-produced truck tyre dumping, the European Union has also rejected claims that Pirelli is not related to either China National Tire & Rubber Co., Ltd (CNRC, which is owned by ChemChina) or Aeolus. Therefore, any tyres made by any of the related companies in China have to be subject to comparable import tariffs.
US puts 10% import tariffs on all Chinese tyres
The Trump administration upped the ante once again in the ongoing trade war between the USA and China on 18 September with the introduction of tariffs on all US$200 billion of imports including basically all categories of tyres, retreads and inner tubes. At President Trump’s direction the additional tariffs will initially be set at 10 per cent and will take effect on 24 September 2018. However, as of 1 January 2019, the level of additional tariffs will increase to 25 per cent.
Tariff fightback? What importers and associations are doing in response to European anti-Chinese truck tyre duties
It is clear that European anti-truck tyre tariffs are already having marked impact on the shape of the market. This is putting pressure on affected importers and manufacturers alike, but – as we have seen elsewhere in this feature – it could also lead to price increases and product shortages. Here Tyres & Accessories takes a closer look at the issue and what is being done in response based on contributions of industry associations such as the NTDA and ITMA as well as key industry figures.
