USTR Requests Comments on ITC's Proposal for Additional Duties against Passenger Tires from China

July 14, 2009

Following its affirmative determination that the U.S. consumer tire industry is being injured as a result of market disruption caused by increased tire quantities imported from China, on July 9, 2009 the U.S. International Trade Commission (USITC) transmitted its remedy proposal to the Office of the U.S. Trade Representative (USTR).

In its proposal, the USITC recommended that the President impose an additional duty for three years on imports of Chinese tires[1]as follows: 55 percent ad valorem in the first year, 45 percent ad valorem in the second year, and 35 percent ad valorem in the third year/ The USTIC further recommended that, if applications are filed, the President direct the Department of Commerce and the Department of Labor to provide expedited consideration of trade adjustment assistance for workers and/or firms affect by imports of Chinese tires.

USTR will review the USITC proposal and make its own proposal to the President regarding what action, if any, is to be taken against imports of Chinese tires. As part of its review, USTR will consider comments on the appropriateness of the proposed actions and other possible actions, including: imposing an additional duty on imports of Chinese tires at a rate, and/or for a period different from the USITC’s recommendation; imposing a tariff-rate quota on imports of Chinese tires; imposing a quota on imports of Chinese tires; an import monitoring mechanism; or no import relief.

In commenting on other possible actions, interested parties are requested to address the appropriateness of any other proposed action and how it would be in the public interest, and address: (i) the short- and long-term effects of the proposed action is likely to have on the domestic passenger vehicle and light truck tires industry, other domestic industries, and downstream consumers, and (ii) the short- and long-term effects that not taking the proposed action is likely to have on the domestic industry, its workers, and other domestic industries.

Interested parties should submit comments, requests for a public hearing, and requests to testify at a public hearing (if a hearing is to be held) by July 27, 2009. If a public hearing is requested, it will be held on August 7, 2009.

Within 15 days after receiving USTR’s recommendation, the President is required to provide import relief unless the President determines that such relief is not in the national economic interest of the U.S. or, in extraordinary cases, that taking such action would cause serious harm to the national security of the U.S.