U.S. Department of Commerce Issues Affirmative Preliminary Countervailing Duty Determination for Passenger Vehicle 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.

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

The full announcement can be found here.

As a result of this 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. Contained in the announcement is a fact sheet which details the exact rates of deposit and other background information.

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.

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

It is also important to note that Commerce is also conducting concurrent antidumping duty (AD) investigations of passenger tires from Korea, Taiwan, Thailand, and Vietnam. The preliminary determinations in these investigations are scheduled to be announced on December 29, 2020.

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

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