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      Economy

      U.S. sets preliminary subsidy rates on Chinese truck and bus tires

      1
      2016-06-29 08:59Xinhua Editor: Gu Liping
      Photo taken on March 6, 2012 shows school buses produced by Zhengzhou Yutong Bus Co., Ltd. in Zhengzhou, capital of central China's Henan Province. (Xinhua/Zhu Xiang)

      Photo taken on March 6, 2012 shows school buses produced by Zhengzhou Yutong Bus Co., Ltd. in Zhengzhou, capital of central China's Henan Province. (Xinhua/Zhu Xiang)

      The U.S. Commerce Department on Tuesday announced its preliminary affirmative determination in the countervailing duty (CVD) investigation against imports of truck and bus tires from China, signaling that it may impose punitive duties on the products.

      The department said that producers and exporters of such products from China had received countervailing subsidies from 17.06 percent to 23.38 percent.

      As a result of the preliminary affirmative determinations, the Commerce will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary rates.

      The Commerce launched antidumping (AD) duty and CVD investigations against imports of such products from China in February 2016, in response to a request from United Steelworkers (USW) based in Pennsylvania. The department is scheduled to make its both final determinations in November this year, unless the statutory deadline is extended.

      Punitive duties would be imposed after both the Commerce Department and the U.S. International Trade Commission (USITC) make affirmative final rulings. The USITC is scheduled to make its final determination in December 2016.

      Imports of these products from China were estimated at about 1.07 billion U.S. dollars in 2015, according to U.S. official data.

      The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.

        

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