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Certain New Pneumatic Off-The-Road Tires from India and Sri Lanka

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Certain New Pneumatic Off-The-Road Tires from India and Sri Lanka Certain New Pneumatic Off-the-Road Tires from India and Sri Lanka Investigation Nos. 701-TA-552-553 and 731-TA-1308 (Final) Publication 4669 March 2017 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Rhonda K. Schmidtlein, Chairman David S. Johanson, Vice Chairman Irving A. Williamson Meredith M. Broadbent F. Scott Kieff Catherine DeFilippo Director of Operations Staff assigned Edward Petronzio, Investigator Raymond Cantrell Industry Analyst Lauren Gamache, Economist Jennifer Brinckhaus, Accountant Russel Duncan, Statistician Darlene Smith, Statistical Assistant Nataline Viray-Fung, Attorney Elizabeth Haines, Supervisory Investigator Special assistance from Michael Szustakowski, Investigator Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov Certain New Pneumatic Off-the-Road Tires from India and Sri Lanka Investigation Nos. 701-TA-552-553 and 731-TA-1308 (Final) Publication 4669 March 2017 CONTENTS Page Determinations ............................................................................................................................... 1 Views of the Commission ............................................................................................................... 3 Part I: Introduction ................................................................................................................ I‐1 Background ................................................................................................................................ I‐1 Statutory criteria and organization of the report ..................................................................... I‐2 Statutory criteria ................................................................................................................... I‐2 Organization of report ........................................................................................................... I‐3 Market summary ....................................................................................................................... I‐3 Summary data and data sources ............................................................................................... I‐4 Previous and related investigations .......................................................................................... I‐5 Nature and extent of subsidies and sales at LTFV .................................................................... I‐5 Subsidies ................................................................................................................................ I‐5 Sales at LTFV .......................................................................................................................... I‐6 The subject merchandise .......................................................................................................... I‐6 Commerce’s scope ................................................................................................................ I‐6 Tariff treatment ................................................................................................................... I‐10 The product ............................................................................................................................. I‐11 Description and uses ........................................................................................................... I‐11 Production process .............................................................................................................. I‐16 Domestic like product issues ................................................................................................... I‐22 Domestic industry issues ......................................................................................................... I‐24 Part II: Conditions of competition in the U.S. market ............................................................ II‐1 U.S. market characteristics ....................................................................................................... II‐1 Channels of distribution ........................................................................................................... II‐2 U.S. purchasers ......................................................................................................................... II‐2 Geographic distribution ........................................................................................................... II‐3 i CONTENTS Page Supply and demand considerations ......................................................................................... II‐3 U.S. supply ............................................................................................................................ II‐3 Subject imports ..................................................................................................................... II‐5 U.S. demand ......................................................................................................................... II‐7 Substitutability issues ............................................................................................................. II‐18 Lead times .......................................................................................................................... II‐18 Knowledge of country sources ........................................................................................... II‐19 Factors affecting purchasing decisions............................................................................... II‐20 Comparisons of domestic products, subject imports, and nonsubject imports ................ II‐23 Comparison of U.S.‐produced and imported OTR tires ..................................................... II‐25 Elasticity estimates ................................................................................................................. II‐27 U.S. supply elasticity ........................................................................................................... II‐28 U.S. demand elasticity ........................................................................................................ II‐28 Substitution elasticity ......................................................................................................... II‐28 Part III: U.S. producers’ production, shipments, and employment ....................................... III‐1 U.S. producers ......................................................................................................................... III‐1 Related parties ........................................................................................................................ III‐4 Changes in operations ............................................................................................................. III‐5 U.S. production, capacity, and capacity utilization ................................................................. III‐5 U.S. producers’ U.S. shipments and exports ........................................................................... III‐6 U.S. producers’ inventories ..................................................................................................... III‐6 U.S. producers’ imports and purchases .................................................................................. III‐6 U.S. employment, wages, and productivity ............................................................................ III‐6 Part IV: U.S. imports, apparent U.S. consumption, and market shares ................................ IV‐1 U.S. importers.......................................................................................................................... IV‐1 U.S. imports ............................................................................................................................. IV‐2 Negligibility .............................................................................................................................. IV‐5 ii CONTENTS Page Critical circumstances .............................................................................................................. IV‐6 Cumulation considerations ..................................................................................................... IV‐8 Fungibility ............................................................................................................................ IV‐8 Geographical markets ....................................................................................................... IV‐10 Presence in the market ..................................................................................................... IV‐10 Apparent U.S. consumption .................................................................................................. IV‐11 Part V: Pricing data ............................................................................................................... V‐1 Factors affecting prices ............................................................................................................ V‐1 Raw material costs ............................................................................................................... V‐1 U.S. inland transportation costs ........................................................................................... V‐2 Pricing practices ......................................................................................................................
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