U.S. Department of Commerce Preliminary Trial of OTR in China

The U.S. Department of Commerce initially decided that Chinese OTR manufacturers dumped their products on the U.S. market and decided to impose a tariff of up to 210% on the wholesale price of each tire. The preliminary results were unfavorable to Chinese OTR tire manufacturers.
The International Trade Commission will make a final decision in June 2008, followed by a tariff on dumped products in August. All Chinese OTR tire importers and all manufacturers are now required by the Department of Commerce to determine the equivalent amount of securities or cash collateral.
In the documents concerning anti-dumping decisions, the Ministry of Commerce ruled that the dumping rate ranged from 10.98% of Tianjin Guolian Tire to 51.81% of Xuzhou Xugong Tire Company. Twenty-three importers representing more than 40 different OTR tire manufacturers will be subject to a 24.75% tariff rate. A uniform 210.48% tariff rate will be imposed on all manufacturers and importers not mentioned in the ruling. Anti-dumping duties will be levied on the wholesale price of OTR tires made in China into the United States.
After knowing the preliminary results, the Ministry of Commerce of the People's Republic of China stated that: After discovering that the Chinese government subsidizes Chinese OTR tire manufacturers, the US Department of Commerce has taken unfair and discriminatory treatment against Chinese manufacturers.
In a recent news report, the Chinese Ministry of Commerce stated that the U.S. unilaterally made an unfair ruling was an infringement of their own laws and also violated multilateral agreements. Moreover, the U.S. side's discriminatory nature against Chinese companies is self-evident. The prejudice the United States holds about China's economic development model is also self-evident.
In the U.S. ruling, the U.S. Department of Commerce found that the Chinese government subsidized China’s OTR tire manufacturers with a subsidy ratio ranging from 2.38% to 6.59%. These figures are based on individual tire manufacturers.

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