USDOC issues APCDD for passenger vehicles and light truck tires from Vietnam

\U.S. Secretary of Commerce Wilbur Ross announced an affirmative preliminary determination in the countervailing duty (CVD) investigation of passenger vehicle and light truck (passenger tires) tires from Vietnam. The Commerce Department preliminarily determined that exporters and producers from Vietnam received counter available subsidies with rates ranging from 6.23 percent to 10.08 percent. Among the subsidies preliminarily countervailed is Vietnam’s undervalued currency – making this the first time that Commerce has ever made an affirmative CVD determination regarding a foreign currency with a unitary exchange rate.  

“Today’s preliminary determination represents an important step forward for the America First trade agenda,” said Secretary Ross. “The Trump Administration remains vigilant against foreign actors that take advantage of American workers and businesses, and we will continue addressing this issue to ensure American industry competes on a level playing field.”

As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of passenger tires from Vietnam based on these preliminary rates noted above. 

The petitioner is the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union, AFL-CIO, CLC. The company is headquartered in Pittsburgh, PA.

Commerce is scheduled to announce its final determination in this case on or about March 16, 2021. This deadline may be extended.  

If Commerce makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about April 30, 2021. If Commerce makes an affirmative final determination in this investigation and the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination of countervailable subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.

In 2019, imports of passenger tires from Vietnam were valued at approximately $469.6 million.