Tag Archives: Import

Taroff Rates on Off-The-Road Tires Imported from China to Raise Again

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The U.S. Department of Commerce (DOC) is once again revising the tariff rates charged to importers of off-the-road tires from China.

The change comes as a result of the DOC’s review of OTR tires brought into the U.S. in 2014. The DOC had published revised rates in April. Afterwards, Titan Tire Corp., the United Steelworkers union and Xuzhou Xugong Tyres Co. Ltd. all filed allegations of “ministerial” or mathematical errors in the calculations.

The DOC agrees it did make an error regarding “the selection of a synthetic rubber benchmark” in its calculations.

As a result, the subsidy rates are changing for Guizhou Tyre Co. Ltd., Xuzhou Xugong and the 44 companies that weren’t selected as mandatory respondents in the investigation. After substantial increases in April, the rates are all increasing again.

Manufacturer/exporter Subsidy rate
Guizhou 37.57
Xuzhou 57.13
Other non-selected companies 47.35

In addition to these changes, some tire companies — including Guizhou and Xuzhou, as well as Tianjin United Tire & Rubber International Co. Ltd. — also are pursuing an appeal in the U.S. Court of International Trade. With that appeal pending, a judge has ordered that the tire makers in the appeals case not be subject to these higher rates “pending resolution of the associated litigation.”

The notice is set to be published in the Federal Register on Aug. 25, 2017.

Source MTD

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The Reason No Tariffs were Assigned: Supply and Demand

China_flag_mapIt all comes down to supply and demand. Well, at least those are a couple factors the International Trade Commission considered when it decided not to impose tariffs on truck and bus tires imported from China.

The following three “conditions of competition” informed the commission’s analysis of whether there’s material injury, or threat of material injury, by the imported products. The quoted material below comes directly from the commission’s final report, and provides a glimipse of how the commission made its decision to keep Chinese truck tires tariff-free.

Demand conditions: Truck and bus tires are sold for two markets — original equipment manufacturers and as replacements in the aftermarket. “Demand for truck and bus tires in the OEM sector is driven by U.S. heavy truck sales, which increased between 2013 and 2015 and then declined in interim 2016. Demand for truck and bus tires in the aftermarket sector is driven by truck tonnage, which increased steadily throughout the period of investigation.” The commission said sales of both domestic-made tires and imports from countries outside of China ”were made predominantly in the aftermarket.”

U.S. producers reported an increase in demand, while importers said it was a mix of either increased or fluctuating demand. “U.S. purchasers were evenly divided between no change and decreased demand, and no purchasers reported either demand increases or fluctuations.”

Using data from questionnaires in the investigation, as well as U.S. import statistics, the commission determined the apparent U.S. consumption of truck and bus tires increased from 21.9 million tires in 2013, to 25.3 million tires in 2014, to 26.5 million tires in 2015.

Supply conditions: The domestic industry had the largest share of the U.S. market during the period of investigation, but its share “steadily declined.” Since 2013 the domestic industry’s share has dropped from 53.3% to 48% in 2014 to 45.6% in 2015. (In 2015 the four largest domestic producers of truck and bus tires were Bridgestone, Goodyear, Continental and Michelin.)

Chinese truck and bus tires were the second largest source of supply for the U.S. market during the period of investigation. Market share for Chinese tires grew from 28.7% in 2013 to 33.2% and 33.6% in the next two years.

Imports from countries other than China grew from 18% market share in 2013 to 18.7% in 2014 and 20.8% in 2015. Canada, Japan and Thailand were the largest sources of imported tires from this group.

Substitutability and other conditions: The commission found a moderate to high degree of substitutability between the domestic and imported products. Most producers, importers and purchasers agreed on that point.

Purchasers cited quality, price and availability as their key factors before buying truck and bus tires. A majority of purchasers (11 out of 20 surveyed) indicated they only sometimes purchase the lowest priced product.

Here’s one disconnect: 34 of 39 importers, and 13 of 20 purchasers said branding influences the price that customers are willing to pay for truck and bus tires. Only two of six producers indicated the same thing.

The vast majority of importers and purchasers agreed that the U.S. truck and bus tire market is divided into tiers, and most agreed there were three major tiers representing varying levels of quality, service and price.

Domestic producers said the largest share of their 2015 sales were concentrated in the top tier, while importers said the majority of imported tires from China were in the third tier, with a much smaller amount falling in Tier 2, and “very few” in the top tier.

Importers agreed that tires imported into the U.S. from countries other than China were present in roughly comparable levels in all three tiers.

“While there is some competition across tiers, purchasers seeking superior product features are generally willing to pay higher prices in order to obtain tires in higher tiers because they identify superior product features in the higher tier tires.

“In addition, certain purchasers focus in their purchase decision on certain product feature requirements such as retreadability, warranties and service time. As a result, these purchasers sometimes will only consider purchasing tires that can satisfy their particular requirements from within the top tier, in which there was substantial domestic production and very few subject imports, and do not consider purchasing tires from lower tiers, where subject imports are concentrated.”

Source MTD
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Error Lowers Some OTR Tire Tariffs

doclogoThe Department of Commerce (DOC) has slightly decreased the tariff charged on off-the-road tires from India.

ATC Tires Pvt. Ltd., a part of Alliance Tire Group, alleged that the DOC made two miscalculations in its final determinations in January. The DOC agreed that it had double counted one benefit, and applied another to an incorrect span of time.

The result is the ATC tariff related to the subsidies it’s received is dropping from 4.9% to 4.72%.

And because the ATC rate was used to calculate the “all others” rate — which is applied to manufacturers and importers who weren’t required to submit their own data to the DOC — that “all others” rate is also decreasing, from 5.06% to 4.94%.

If all of this sounds slightly familiar, it’s because the DOC already has admitted it made other errors when calculating the anti-dumping tariff on OTR tires. Those miscalculations led the DOC to reverse course and begin charging anti-dumping tariffs on OTR tires from India on all but one tire manufacturer. The agency previously had indicated there was no evidence any company had dumped tires in the U.S., but its recalculations prompted tariffs of 3.67% for Alliance and other manufacturers. The lone exception in that case is Balkrishna Industries Ltd. (BKT). The government says there remains no evidence BKT dumped tires in the U.S. at lower than market prices.

With the new rates in place, the result is ATC will pay a combined 8.39% in tariffs on OTR tires from India. BKT will pay 5.36%. Its countervailing tariff was unaffected by the changes to the ATC rate.
Source MTD
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No Tariffs Will Be Assigned on Medium Truck and Bus Tires from China

ctNo tariffs will be assessed on truck and bus tires manufactured in China and imported into the U.S. The International Trade Commission (ITC) has upended the tariff investigation by voting today against imposing tariffs on these products.
The ITC doesn’t immediately publish an explanation of its vote, but instead issues a single sentence that it has “made a negative determination.”

The result is that the tariff investigation on truck and bus tires from China is over, and no tariffs will be assessed.

The vote

After it’s initial one-sentence announcement this morning, the ITC has provided one more detail on its decision. The five-member commission voted 2-3.

Commissioners Rhonda Schmidtlein and Irving Williamson voted in the affirmative (which was a vote to impose the tariffs,) and commissioners David Johanson, Meredith Broadbent and F. Scott Kieff voted in the negative.

A sixth member of the commission, Dean Pinkert, did not participate in the case. Pinkert also recused himself from the separate investigation studying tariffs on off-the-road tires earlier this year.

The report

Weeks after an ITC vote, the commission provides insight into its decision. That report will be available by March 15, 2017, here.

Source MTD
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We have several warehouses full of tires and ship all over the USA daily. Give us a call at 1-888-513-8473 and check out our website http://www.yournexttire.com


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Huge Truck Tire Tariffs Coming Soon

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Commercial truck and bus tires imported from China are benefitting from subsidies from the Chinese government, and as a result the U.S. Department of Commerce (DOC) says those tires should be subject to tariffs up to 23.38%.

The DOC issued its preliminary determination June 28. It studied data from two importers: Double Coin Holdings Ltd. and Guizhou Tyre Co Ltd. Data from those companies then is used to calculate one tariff rate for all the other companies that ship products from China to the U.S.
For Double Coin the DOC is levying a tariff of 17.06%. The rate is 23.38% for Guizhou. All other importers will be assessed a rate of 20.22%.

These figures represent only one half of the overall tariff equation. The DOC also is investigating whether the imported products are being dumped in the U.S. at prices below the cost of manufacturing. The dumping investigation continues, and ultimately an anti-dumping tariff will be added to these preliminary countervailing rates. A preliminary decision in the anti-dumping case is due Aug. 26.

Final rulings in both the countervailing and anti-dumping investigations are due Nov. 10, 2016.

The DOC also found that critical circumstances exist “with respect to one exporter of truck and bus tires from China.” As a result, U.S. Customs and Border Protection will collect the duties retroactively for Guizhou Tyre Co. Ltd. dating back to 90 days prior to the publication of this ruling in the Federal Register.

Two weeks ago the DOC issued preliminary rates for its other ongoing tire investigation — for off-the-road tires manufactured in Sri Lanka and India.

Source MTD

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We have several warehouses full of tires and ship all over the USA daily. Give us a call at 1-888-513-8473 and check out our website http://www.yournexttire.com


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How the Tariffs have Affected Tire Prices

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Some of the largest independent tire dealers in the country visited the Specialty Equipment Market Association (SEMA) Show in Las Vegas Nov. 3-6.

I had a chance to talk with many of them about pricing. I also broached the subject with a number of smaller dealers – remember, some 60% of all independent tire dealers own a single outlet, making them the bread-and-butter of our industry.

I also talked with manufacturers and exhibitors as I walked from booth to booth and checked out what was going on.

Here’s what they had to say about pricing. I guess what happens in Vegas doesn’t always stay in Vegas.

Four years after the last tariffs on consumer tire imports from China went into effect, tire prices had risen 28.4%. That is an average price, but once low-cost radial pricing increases, the “better” and “best” tires (and “good” if you consider low-cost imports to be its own category below “good”) tend to follow suit. Is this good for the consumer? Of course not.

The tariffs this time around are much higher. Good for the consumer? The answer is no. And yes. And moot. Most of the dealers told me they had noticed no change in the prices. No change! And some said the price of low-cost imports had decreased – one dealer said by as much as 30%! How can that be? They offered up a number of factors.

1. Low raw material costs.

2. Subsidizing by the Chinese government.

3. Deals by many of the smaller Chinese manufacturers looking for cash flow.

4. Greater supply than demand.

Two of the four — Nos. 1 and 4 — could change, which would likely lead to an increase in pricing. But those factors, especially No. 4, tend to be ruled by free trade and are unrelated to the tariffs. Nos. 2 and 3 are more artificial, and if they continue, pricing could be held down indefinitely.

(A few of the dealers said pricing had risen, but they were in the minority.)

Here is what I think will happen. China already has twice devalued its yuan because of its slumping economy, and I think it will keep subsidies in play, which will keep the low-cost radial tire plants in China in operation for the time being. Consider the tires in some ways a loss-leader for China.

As for the “deals,” some of which were offered at the show — 205/55R16s for $18 apiece?! — they will only hold off the proverbial creditor for so long. My guess is many of the companies with smaller, older factories will be weeded out over time.

Eventually, only the stronger Chinese tire manufacturers that have state-of-the-art plants and try to make money without dumping tires will survive. Their pricing is comparatively higher in the U.S. anyway, which is why I was surprised they were saddled with such exorbitant tariffs.

Source Modern Tire Dealer

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Yokohama Medium Truck Tires Built in Mississippi Speed Production

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The Yokohama Tire Manufacturing Mississippi LLC plant is mass producing truck tires roughly 24 months after breaking ground.
Yokohama executives, including Hikomitsu Noji, president and representative director of Yokohama Rubber Co. Ltd., and Takaharu Fushimi, CEO and president of Yokohama Tire Corp. and Yokohama Corp. of North America, were joined by Mississippi Governor Phil Bryant at a press conference talking about the joint partnership.

Noji said Yokohama sees growth in the U.S. truck tire industry, and the greenfield plant, located in West Point, Miss., in Clay County, will fill the demand of Yokohama’s customers in the United States by producing 22.5- and 24.5-inch tires.

“Our speed to market is going to improve greatly,” said Rick Phillips, Yokohama Tire Corp.’s vice president of sales. “Our lead time will literally go from months when we source tires from offshore to just a few days when we source tires here in Mississippi.

‘It’s going to give us a lot more flexibility to adapt to a changing market to make sure we have the right product mix will get the right tires in the right place at the right time.”

Gov. Bryant said in the last 15 years, Mississippi has added Nissan and Toyota plants in addition to the Yokohama facility. “We are looking at the continued success of the Mississippi automotive corridor.”

He said 500 people will be working for the plant when Phase 1 is completed by 2018. Clay County had the second highest unemployment rate in Mississippi prior to the greenfield plant’s construction.

The truck tire plant is nearly 1 million square feet. At the completion of Phase 1, the commecial facility will have the capacity produce 1 million tires annually, or 3,000 tires a day.

“Our MDA team, Mississippi Development Authority, did a remarkable job of insentivizing this company,” added Bryant.

Fushimi said the manufacturing plant was “strategically designed to serve as a manufacturing center of our commercial tires,” to be exclusively used in North America.

Does that mean the GTY joint venture truck tire plant with Continental Tire the Americas LLC will be affected?

Yes, said Phillips, Yokohama’s involvement in the joint venture “will be winding down.”

He added that the new plant is the most efficient Yokohama truck tire plant.

Source Modern Tire Dealer

Your Next Tire has all your tire needs whether you need tires for your minivan, backhoe, dump truck, lawn mower, atv, semi truck or Ford F150.

We have several warehouses full of tires and ship all over the USA daily. Give us a call at 1-888-513-8473 and check out our website http://www.yournexttire.com


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Department of Commerce Lowers Anti-Dumping Tariffs on Tires

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DOC lowers anti-dumping tariffs
For the second time, the U.S. Department of Commerce (DOC) is admitting to significant ministerial errors in calculating the tariffs on imports of certain passenger vehicle and light truck tires from China. The error is resulting in a lower anti-dumping tariff for nearly every tire manufacturer.

The DOC’s International Trade Administration indicates in a March 19 document it is amending its preliminary determination of its anti-dumping duty investigation following concerns presented by the Sailun Group Co. Ltd.

In a Feb. 2, 2015, brief filed by Sailun’s attorneys, the tire manufacturer says the DOC “inadvertently double counted the valuation of certain factors of production.” The specifics are redacted from the public version of the document, however Sailun asserts four fields were double counted.

“The double counting of these inputs has a significant impact on Sailun’s calculated preliminary dumping margin of 36.26%. By removing these four double-counted inputs, Sailun’s weighted average dumping margin is reduced to 18.43%,” the company asserts.

The DOC ultimately reduced Sailun’s anti-dumping duty by almost half – from 36.26% to 18.58%.

That reduction led to the lowering of anti-dumping duties for 65 other companies, from 27.72% to 18.99%.

The only company that didn’t benefit from the adjustment is Giti Tire Global Trading Pte. Ltd., though Giti did allege a significant ministerial error. The DOC says it is not amending Giti’s 19.17% “because Giti’s ministerial errors are not significant.”

The DOC’s definition of a significant ministerial error is that the correction results in a change of at least 5 absolute percentage points, but not less than 25% of the originally calculated figure.

The rate for Sailun will be effective retroactively to Jan. 27, 2015, the date the original higher rate was published in the Federal Register. The rate for the other affected companies will be effective retroactively to Oct. 29, 2014, which is 90 days before the date of publication.

Your Next Tire has all your tire needs weather you need tires for your minivan, backhoe, dump truck, lawn mower, atv, semi truck or Ford F150.
We have several warehouses full of tires and ship all over the USA daily. Give us a call at 1-888-513-8473 and check out our website http://www.yournexttire.com

Source MTD


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Girdlocked Ports Hurts the Importing of Goods in America

With port talks gridlocked, White House ramps up pressure for a deal. President Obama ordered his labor secretary to California to try to head off a costly shutdown of 29 West Coast ports.
Obama dispatched Tom Perez on Saturday to jump-start stalled labor talks between shipping companies and the dockworkers’ union. The move ramps up pressure to resolve a dispute that stranded tens of thousands of containers on cargo ships over the holiday weekend.
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The Los Angeles and Long Beach ports account for some 40% of the nation’s incoming container cargo, with $1 billion in goods moving through daily. A prolonged shutdown could hobble some Southland businesses and ripple across the U.S. economy.

On Saturday morning, 32 massive ships were anchored outside the ports, unable to unload thousands of cargo containers filled with auto parts, electronics and clothes destined for store shelves across the country.

“Any company that imports supplies, inventory or parts is going to feel it,” said Ian Winer, a managing director at Wedbush Securities. “There are very few companies who don’t have something coming through those ports.”

That has businesses across the world focused on a dispute between a network of terminal operators and one of the strongest unions left in American industry.

After nine months of talks, the two sides agree on key issues including healthcare but remain gridlocked over rules governing the removal of arbitrators, who settle disputes on the docks.

At stake is a new contract for roughly 20,000 dockworkers at 29 West Coast ports. The International Longshore and Warehouse Union has been working without one since July amid negotiations with the Pacific Maritime Assn.

Honda North America Inc. will slow production at factories in Ohio, Indiana and Canada because it can’t get crucial parts from Japan, said spokesman Mark Morrison.

An extreme example of what could happen came Tuesday, when South Korea’s largest shipping company, Hanjin, announced it was pulling out of the Port of Portland.
The shipper accounted for 78% of business at the port, according to the Oregonian newspaper, importing apparel for companies such as Nike and exporting apples and other crops.

While globalization has hurt unions in many U.S. industries, it’s had the opposite effect at West Coast ports. Surging trade with Asia has nearly tripled traffic at the ports of L.A. and Long Beach over the last 20 years and given dockworkers here ever more clout.

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Chinese Tire Tariffs will Harm American Consumers

The China Rubber Industry Association will appeal the U.S.’s decision to set anti-dumping duties for certain passenger and light truck tires imported from China.
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“To issue such high duty rates would impair China’s tire manufacturing sector as well as harm the interests of American consumers,” stated the association. “Over the past three years U.S. tire manufacturers registered over $3.8 billion of profit, and no damage was caused to the industry by China’s tire export,” added the China trade group.

On Jan. 23, Beijing’s Ministry of Commerce responded to the Department of Commerce’s decision to enact preliminary anti-dumping duties for certain passenger and light truck tires imported from China, stating that the case has “many flaws.”

Source Modern Tire Dealer

Your Next Tire has all your tire needs weather you need tires for your minivan, backhoe, dump truck, lawn mower, atv, semi truck or Ford F150.
We have several warehouses full of tires and ship all over the USA daily. Give us a call at 1-888-513-8473 and check out our website http://www.yournexttire.com


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