US Department of Commerce recently announced affirmative preliminary determinations that Vietnamese tire exporters whose turnovers to the US reach 95,5% would not be considered as “dumping”.
The U.S. Department of Commerce announced affirmative preliminary determinations in the anti-dumping duty investigations of passenger vehicle and light truck tires from South Korea, Taiwan, Thailand, and Vietnam.
The department’s preliminary investigation determined that exporters have dumped passenger tires in the United States at rates of 14.24% to 38.07% for South Korea, 52.42% to 98.44% for Taiwan, 13.25% to 22.21% for Thailand, and up to 22.30% for Vietnam.
Accordingly, the enterprises that are not considered as dumping in this conclusion are those whose export turnover of car tires to the US accounting for 95.5% of the total turnover. The remaining businesses, because of not fully cooperating with the investigation agency, are subject to a tax rate of 22.3%. Vietnam’s Trade Remedies Authority noted, in order to avoid dumping labels, enterprises should actively participate in the investigation process.
This preliminary result benefits Vietnamese car tire exporters as partners from Korea, Taiwan, and Thailand (under the same investigation) have been imposed an anti-dumping tax at a higher rate of 13.25% to 98.44%.
After issuing the preliminary conclusions, it is customary for the DOC to conduct on-site verification of enterprises in the near future to verify the information submitted in the questionnaire responses. However, due to the influence of COVID-19, the US announced that it would not conduct an on-site verification but to require businesses to provide additional information before making a final conclusion.
Based on the situation, Vietnam’s Trade Remedies Authority recommends that the related car tire manufacturers and exporters continue to cooperate closely and fully with the investigating agency to ensure positive final conclusions. In the case that the mentioned preliminary conclusions will remain at the final stage of the investigation, enterprises that are not labeled as dumping will be excluded from the investigation. It is expected that the DOC will issue its final conclusion on May 14.
The car tire dumping case was initiated by the DOC on June 26, 2020, based on the petition of the United Steelworkers (USW), which represents workers in tire factories. Passenger and light truck tires from Vietnam are currently subject to the dumping investigation. Department of Commerce is conducting a concurrent countervailing duty (CVD) investigation of passenger tires from Vietnam. This proceeding remains ongoing.
In 2019, the US imported about 4 billion USD worth of tires from four countries and territories that are subject to dumping investigation (South Korea, Taiwan, Thailand, and Vietnam.), of which Vietnam accounted for about 500 million USD. US tires imported volume increased by about 20% compared to 2017, after the breakout of US-China tensions.