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US Importers of Chinese Tires Get Flattened

The cheapest tires you can find for your 18-wheeler are being made in China. In fact, the US Department of Commerce has determined that the Chinese government assistance given to its Chinese tire manufacturers gives these tire importers an average of 20% advantage over their US competitors. To offset this unfair advantage, the United States Government is enforcing an average 20% additional duty (called a Countervailing Duty) to all tires being imported into the United States effective July 7th 2016.  Here is the official notice.

If you are currently importing heavy truck tires, life as you know it will change in a big way! You’ll be paying more for your Chinese tires, that is true. But that’s just the beginning. You need a new Importer Customs Bond and you will be required to post a security deposit of its face value.  And there’s more! The CVD duty rate may change because it is just an estimated duty rate. Some cases are open for three to five years before a final rate is determined.

Keep in mind that we are only talking about countervailing duty right now. With the antidumping duty investigation still pending, there are whispers of an affirmative determination for antidumping duty being signed off on at the end of August 2016.  Those rates are unknown at this time.

Every country has Anti Dumping Duties and Countervailing Duties (ADD/CVD) to protect its local manufacturers from foreign predatory pricing, but the United States is the only country in the world that postpones the final assessment of the amount for many years.

John Heimsath – President & CEO ACM Logistics & Consulting Inc.