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Tariffs Upheld on OTR Tires From India and Sri Lanka

February 07, 2017

The International Trade Commission (ITC) has upheld the tariffs on off-the-road (OTR) tires suggested by the U.S. Department of Commerce (DOC), reports Modern Tire Dealer.

The ITC voted Feb. 3 to affirm the anti-dumping and countervailing tariff investigations.

The commission voted unanimously that the U.S. industry is being materially injured by imported OTR tires from the affected countries. A sixth commissioner, Dean Pinkert, recused himself from the investigation in December.

The commission did not immediately issue information on why it voted one way or another. Those details will be provided by the ITC no later than March 16.

The vote confirms the previous findings of the DOC, and regulates that some OTR tire makers in India will pay a 3.67% anti-dumping tariff. (Balkrishna Industries Ltd. is exempt from the dumping tariff because the government said it found no proof BKT had sold tires in the U.S. at less than fair market value.)

The vote also confirms OTR tire makers in India will pay their assessed countervailing duties. Alliance Tires Pvt. Ltd. will pay a 4.9% countervailing tariff, BKT will pay a 5.36% rate, and all other OTR tire makers in India will pay a 5.06% countervailing tariff.

OTR tire manufacturers in Sri Lanka also will pay countervailing tariffs to offset the subsidies they've received from that country's government. All OTR tire makers in Sri Lanka will be charged a 2.18% tariff.

The agencies will forward their affirmative vote to the U.S. Customs and Border Protection, which will begin collecting the tariffs on shipments from India and Sri Lanka.

None of the tire makers will have to pay tariffs retroactively. The commission did not find evidence of a surge of imports when the tariff investigation began, so goods that entered the U.S. prior to June 20, 2016, (the date the DOC issued its preliminary findings) will not be subject to retroactive duties.

Editor's note: This story originally appeared on Modern Tire Dealer, which is a Bobit Business Media publication.

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