Following the news that the US Department of Commerce (DoC) had set the preliminary countervailing duty for Chinese consumer tyres, market analysts have begun estimating what they think the outcome of final determinations will be when they are announced on 6 April 2015. Preliminary details of anti-dumping duties are expected in January 2015. Writing in […]
The US Commerce Department (USDOC) has moved to impose import tariffs on tyres manufactured in China and imported into the US. The USDOC has also agreed to initiate work on an additional nine subsidy programs identified by the USW. The preliminary finding suggested that Chinese-made tyres in this category are unfairly subsidized and should be subject to countervailing duties of 17.7 per cent and 81.3 per cent. The precise percentage depends on the manufacturer in question, but the standard rate is reportedly 15.69 per cent. This is the second round of passenger vehicle and light truck duties since the millennium. The first round ran from 2009 to 2011 and ranged from 35 to 25 per cent.
Eleven years of Chinese government anti-dumping duties on imports of styrene butadiene rubber (SBR) from Russia, Japan and South Korea ended on 8 September, the country’s Ministry of Commerce reports. The products had attracted duties of four to 38 per cent, however the ministry decided to remove them as these imports were deemed no longer a threat to China’s domestic tyre and rubber industry.
This morning the US International Trade Commission announced that its investigation has found “reasonable indication that an industry in the United States is materially injured or threatened with material injury by reason of imports from China of certain passenger vehicle and light truck tyres”.
Yesterday the United States International Trade Commission (USITC) determined there is a reasonable indication that imports of certain passenger car and light commercial vehicle tyres from China – tyres alleged to be subsidised and offered for sale in the US at less than fair value – materially injure or threaten to materially injure the country’s domestic industry. USITC chairman Meredith M. Broadbent, vice-chairman Dean A. Pinkert, and commissioners Irving A. Williamson, David S. Johanson, F. Scott Kieff, and Rhonda K. Schmidtlein voted in favour of continuing the investigation into these products.
In this month’s magazine (July 2014), as well as our the conclusion of our comprehensive review of the Essen Show (see page 40 onwards) plus features on manufacturing (from page 24) and batteries (page 8+), we report on the potential “Return of US tyre import tariffs” (on page 30). Reading this article, you could be forgiven for thinking you had stepped into a time warp to 2009 where proceedings followed a very similar course. This time round, the potential implementation of a second round of import US import tariffs aimed squarely at China have fermented rumours about whether anything similar is likely to happen in Europe. So will it?
The Tire Industry Association (TIA) is opposing the International Trade Commission (ITC) that would limit the import of Chinese-made passenger and light truck tyres into the US. TIA previously opposed a similar measure in 2009. According to a statement published today, the association “feels strongly that this measure, despite being well-intentioned, would not help in the preservation of manufacturing jobs, and would be harmful to consumers, as these tyres are often an affordable solution to those drivers with limited budgets. However, the association also reiterates its long-standing position that all tyres – regardless of country of origin – must be held to all applicable Federal Motor Vehicle Safety Standards.”
Brazil’s Chamber of Commerce (Camex) has reviewed and extended its anti-dumping duties on passenger car tyres manufactured in China. In late July it published a list of duties to be charged on tyres covered by Mercosul Common Nomenclature (NCM) 4011.10.00, specifically new 65 and 70 series, 13 and 14-inch rim diameter passenger car radials.
The United Steelworkers has described a decision made by the Appeals body of the World Trade Organization as “a slap in the face to US workers and industries that are harmed by China's predatory trade practices.” The decision reverses the findings of a WTO panel report from last year on anti-dumping and countervailing duty proceedings for off-road tyres and a number of other products from China; specifically, the WTO states the US Department of Commerce acted erroneously by simultaneous levying both anti-dumping and countervailing duties on these products.
The United States claimed victory in a recent trade spat with China over anti-dumping charges placed on imports pipes, tubes, OTR tyres and sacks. US Trade Representative (USTR) Ron Kirk told the AFP news agency that the World Trade Organisation (WTO) had broadly upheld Washington's right to place duties on goods from China that were unfairly subsidised: "This is a significant win for American workers and businesses affected by unfairly traded imports.”
Nevertheless a report produced by China’s Xinhua news agency suggests the People’s Republic would like to present the 22 October WTO ruling as falling in its favour. China welcomed the fact that the WTO found that the US imposition of anti-dumping and countervailing duties on four types of Chinese imports was inconsistent with WTO regulations, the Chinese Ministry of Commerce (MOC) said a day after the ruling was published.
On 12 May the European Commission (EC) imposed a 20.6 per cent duty on aluminium road wheels imported from China. The ruling, which is lower than the 30 per cent some sources predicted, is designed to put the brakes on the decline in European produced aluminium wheel sales. It comes in the form of a “preliminary measure” just over half way through the anti-dumping investigation that began at the behest of EUWA (European Wheel Manufacturers Association) in May 2009. The preliminary measure lasts for the six months necessary for the commission to make its final ruling in November at which point the 12 May ruling leaves the option open for commission to the 20.6 per cent import duty for an extra five years.
President Barack Obama’s decision to apply a 35 per cent import duty on all passenger car and light truck tyres from China for a period of three years may have been intended to “remedy market disruption caused by a surge in [Chinese] tyre imports” into the US, but it has also provoked a sharp response from the Chinese ministry of commerce and played havoc with the share prices of Far Eastern tyre manufacturers. China’s state media said the US import duties would cost 100,000 jobs and $1 billion (£600 million).
Announcing the decision (on Friday 11 September 2009), the White House explained that the 35 per cent ad valorem levy would be placed in addition to the existing 4 per cent import duty on imports of Chinese-product passenger car and light truck tyres. The duty will reduce to 30 per cent ad valorem in the second year, and 25 per cent ad valorem the third year. The US International Trade Commission had recommended a 55 per cent tariff in the first year, 45 per cent in the second year and 35 per cent in the third year.
On 14 August, the European Commission began an investigation into the alleged ‘dumping’ of Chinese-made aluminium wheels into the European market. The investigation followed Association of European Wheel Manufacturers’ (EUWA) June complaint that the practice has been taking place. “Having determined that there is sufficient evidence to justify the initiation of a proceeding, the Commission hereby initiates an investigation,” Reuters quoted the journal of the executive arm of the 27-nation European Union as saying. China's Ministry of Commerce denied the charges saying: “It raises the cost of repairs for customers, affects the recovery of the European auto sector from the global financial crisis, and hurts the interests of both China and Europe'” in a statement on the Ministry's website.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
