Duty Increase for Truck Tires from China

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Truck tires from China are about to get much more expensive . . . here’s why

The US has just imposed Anti-Dumping Duty (ADD) and Countervailing Duty (CVD) deposit rates on heavy truck and bus tires from China, effective Friday, February 15.

 All of this is in addition to the current 10% "additional duty" on these types of tires from China, which is scheduled to increase to 25% on March 1.

So, the maximum possible total duty rate on these types of tires from China, per the newly published ADD and CVD deposit rates, and assuming the scheduled "additional duty" increase from 10% to 25% happens on March 1, will soon total 114.91%.

Basically, what has just happened is:

  • In January 2016, the US rubber workers' union filed petitions with the US Department of Commerce, requesting that ADD and CVD cases be opened on truck and bus tires from China.

  • The US Department of Commerce and the US International Trade Commission investigated the issue during 2016.

  • In March 2017, the International Trade Commission determined that the US domestic tire industry had not been materially injured, or threatened with material injury, by imports of these types of tires from China.  US Customs stopped requiring any deposits of ADD or CVD for these cases, and refunded any ADD or CVD deposits previously collected.  Most observers thought the issue was over, at least for the moment.

  • The US rubber workers' union disputed the Commission's findings, and filed a lawsuit in the Court of International Trade.

  • On November 1, 2018, the Court of International Trade remanded (sent back) the issue to the International Trade Commission, for reconsideration.

  • The International Trade Commission reconsidered the issue, changed its mind, and authorized the Department of Commerce to re-issue the ADD and CVD orders on truck and bus tires from China.

  • The International Trade Administration of the Department of Commerce re-issued the ADD and CVD orders, to be effective on the date of their publication in the Federal Register.  These re-issued orders were published in the Federal Register on February 15, becoming effective on that date.

The preliminary ADD and CVD rates for shipments of these types tires, entered on or after February 15, are subject to change.  However, the published preliminary deposit rates are:

  • ADD for numerous specified combinations of exporters and producers - 9%

  • ADD for non-specified exporters and producers - 22.57%

  • CVD for Guizhou Tyre - 63.34%

  • CVD for Shanghai Huahi / Double Coin - 20.19%

  • CVD for all others - 42.16%

Obviously, this has suddenly become a very strong incentive for US importers of these types of tires to source the product from origins other than in China.

Transmark Customs Brokers is available to advise US truck and bus tire importers (and their customers) about options they may have, in dealing with this situation.