By SEMA Washington, D.C., Staff

The U.S. Department of Commerce (DOC) issued a preliminary ruling that Vietnamese tire producers were receiving unfair subsidies associated with the country’s “undervalued currency.” The DOC calculated countervailing duty rates ranging from 6.23% to 10.08%. The DOC will now instruct U.S. Customs and Border Protection to collect cash deposits from importers of tires from Vietnam based on the preliminary rates. Imports of passenger tires from Vietnam were valued at about $470 million in 2019.

The countervailing duty decision is part of a broader investigation alleging that passenger and light truck tires from South Korea, Taiwan, Thailand, and Vietnam are being sold in the U.S. at less than fair value (“dumping”). The DOC is expected to issue its preliminary anti-dumping decisions by December 29, with final decisions to be issued in mid-March 2021. The alleged dumping margins are as high as 195% for Korea, 147% for Taiwan, 217% for Thailand, and 33% for Vietnam.

The U.S. International Trade Commission (ITC) has already made an initial determination that U.S. industry is likely being harmed by the alleged dumping and subsidies. For duties to take effect, the ITC must confirm that there is harm or threatened harm to U.S. industry once the DOC has issued its final dumping and subsidy calculations.

For more information, contact Stuart Gosswein at stuartg@sema.org.

By SEMA Washington, D.C., Staff

The U.S. Department of Commerce (DOC) issued a preliminary ruling that Vietnamese tire producers were receiving unfair subsidies associated with the country’s “undervalued currency.” The DOC calculated countervailing duty rates ranging from 6.23% to 10.08%. The DOC will now instruct U.S. Customs and Border Protection to collect cash deposits from importers of tires from Vietnam based on the preliminary rates. Imports of passenger tires from Vietnam were valued at about $470 million in 2019.

The countervailing duty decision is part of a broader investigation alleging that passenger and light truck tires from South Korea, Taiwan, Thailand, and Vietnam are being sold in the U.S. at less than fair value (“dumping”). The DOC is expected to issue its preliminary anti-dumping decisions by December 29, with final decisions to be issued in mid-March 2021. The alleged dumping margins are as high as 195% for Korea, 147% for Taiwan, 217% for Thailand, and 33% for Vietnam.

The U.S. International Trade Commission (ITC) has already made an initial determination that U.S. industry is likely being harmed by the alleged dumping and subsidies. For duties to take effect, the ITC must confirm that there is harm or threatened harm to U.S. industry once the DOC has issued its final dumping and subsidy calculations.

For more information, contact Stuart Gosswein at stuartg@sema.org.

By SEMA Washington, D.C., Staff

The U.S. Department of Commerce (DOC) has decided to keep the antidumping duty (AD) order issued in August 2015 in place for certain passenger vehicle and light truck tires from the People’s Republic of China. The AD order was subject to potential repeal under the “sunset review” process that occurs every five years. The DOC ruled that revocation of the AD order would likely lead to the continuation or recurrence of dumping at margins up to 87.99%. The AD duties imposed in 2015 ranged from 14.4% to 87.9% and countervailing duties ranged from 20.7% to 100.8%, depending on manufacturer. The “China-wide” rates were 30.9% and 87.8%, respectively.

The covered passenger vehicle and light truck tires are new pneumatic tires, of rubber. They may be tube-type, tubeless, radial, or non-radial, and they may be intended for sale to original equipment manufacturers or the replacement market. The subject tires are currently classified under the following Harmonized Tariff Schedule subheadings:

• 4011.10.10.10
• 4011.10.10.20
• 4011.10.10.30
• 4011.10.10.40
• 4011.10.10.50
• 4011.10.10.60
• 4011.10.10.70
• 4011.10.50.00
• 4011.20.10.05
• 4011.20.50.10

The subject tires meeting may also fall under the following subheadings:

• 4011.99.45.10
• 4011.99.45.50
• 4011.99.85.10
• 4011.99.85.50
• 8708.70.45.45
• 8708.70.45.60
• 8708.70.60.30
• 8708.70.60.45
• 8708.70.60.60

For more information, contact Stuart Gosswein at stuartg@sema.org.

By SEMA Washington, D.C., Staff

The U.S. Department of Commerce (DOC) has decided to keep the antidumping duty (AD) order issued in August 2015 in place for certain passenger vehicle and light truck tires from the People’s Republic of China. The AD order was subject to potential repeal under the “sunset review” process that occurs every five years. The DOC ruled that revocation of the AD order would likely lead to the continuation or recurrence of dumping at margins up to 87.99%. The AD duties imposed in 2015 ranged from 14.4% to 87.9% and countervailing duties ranged from 20.7% to 100.8%, depending on manufacturer. The “China-wide” rates were 30.9% and 87.8%, respectively.

The covered passenger vehicle and light truck tires are new pneumatic tires, of rubber. They may be tube-type, tubeless, radial, or non-radial, and they may be intended for sale to original equipment manufacturers or the replacement market. The subject tires are currently classified under the following Harmonized Tariff Schedule subheadings:

• 4011.10.10.10
• 4011.10.10.20
• 4011.10.10.30
• 4011.10.10.40
• 4011.10.10.50
• 4011.10.10.60
• 4011.10.10.70
• 4011.10.50.00
• 4011.20.10.05
• 4011.20.50.10

The subject tires meeting may also fall under the following subheadings:

• 4011.99.45.10
• 4011.99.45.50
• 4011.99.85.10
• 4011.99.85.50
• 8708.70.45.45
• 8708.70.45.60
• 8708.70.60.30
• 8708.70.60.45
• 8708.70.60.60

For more information, contact Stuart Gosswein at stuartg@sema.org.

By SEMA Washington, D.C., Staff

The U.S. Department of Commerce (DOC) has decided to keep the antidumping duty (AD) order issued in August 2015 in place for certain passenger vehicle and light truck tires from the People’s Republic of China. The AD order was subject to potential repeal under the “sunset review” process that occurs every five years. The DOC ruled that revocation of the AD order would likely lead to the continuation or recurrence of dumping at margins up to 87.99%. The AD duties imposed in 2015 ranged from 14.4% to 87.9% and countervailing duties ranged from 20.7% to 100.8%, depending on manufacturer. The “China-wide” rates were 30.9% and 87.8%, respectively.

The covered passenger vehicle and light truck tires are new pneumatic tires, of rubber. They may be tube-type, tubeless, radial, or non-radial, and they may be intended for sale to original equipment manufacturers or the replacement market. The subject tires are currently classified under the following Harmonized Tariff Schedule subheadings:

• 4011.10.10.10
• 4011.10.10.20
• 4011.10.10.30
• 4011.10.10.40
• 4011.10.10.50
• 4011.10.10.60
• 4011.10.10.70
• 4011.10.50.00
• 4011.20.10.05
• 4011.20.50.10

The subject tires meeting may also fall under the following subheadings:

• 4011.99.45.10
• 4011.99.45.50
• 4011.99.85.10
• 4011.99.85.50
• 8708.70.45.45
• 8708.70.45.60
• 8708.70.60.30
• 8708.70.60.45
• 8708.70.60.60

For more information, contact Stuart Gosswein at stuartg@sema.org.

By SEMA Washington, D.C., Staff

The California Air Resources Board (CARB) recently issued a letter inviting companies to disclose by December 31, 2020, any unapproved hardware or software programs that impact emissions-control systems in vehicles sold in California. The letter specifically cited auxiliary emission-control devices (AECDs) installed on vehicles. An AECD is defined as any element of design which senses temperature, vehicle speed, engine RPM, transmission gear, manifold vacuum or any other parameter for the purpose of activating, modulating, delaying or deactivating the operation of any part of the emission control system.

In 2015, regulators discovered that Volkswagen had installed a program on turbocharged direct-injection diesel engine vehicles that activated emissions controls in a testing situation but not in real-world driving conditions. Other automakers were subsequently found to have installed AECDs whereby the vehicles produced different emissions results for highway use versus in regulatory test conditions. The violations resulted in settlements with substantial fines and recall mandates.  

CARB notes that some AECDs change the operation of emissions-control equipment when required by specific, sometimes extreme driving conditions, such as pulling a maximum load uphill in hot weather. CARB would consider the AECD legal if fully disclosed and if there is a technically justified rationale for its limited use.

CARB is scheduled to open a new state-of-the-art testing facility in Riverside, California, in 2021 that will include sophisticated detection and testing techniques to identify undisclosed AECDs and other unapproved changes in software and hardware that can affect emissions. CARB’s letter offers manufacturers an opportunity to voluntarily inform the agency of any previously undisclosed software devices or hardware for both on- and off-road applications. While CARB may still pursue an enforcement action, monetary penalties would likely be reduced 25%-75%.

While AECDs installed on automobiles may be a primary focus of the CARB letter, the agency’s voluntary disclosure offer also applies to aftermarket parts manufacturers. Companies may wish to conduct an internal audit in case there is a need to contact CARB before the December 31deadline. Issues to consider would include:

• Products being sold in California that don’t have an Executive Order (EO).
• Newer year models or part numbers that need to be updated for products with an EO.
• EO product changes/updates that change functionality for which CARB should be aware.
• Recalls or field fixes that have not been disclosed.

With respect to obtaining California EOs, the SEMA Garage was established to assist members in testing their emissions-related parts. The SEMA Garage makes experts and resources available to help members navigate the compliance process, including:

• Evaluation of your product and recommendations for compliance procedures.
• Assistance with the CARB EO process.
• Interaction with CARB staff on your behalf.
• Review and evaluation of test data.

The SEMA Garage includes a laboratory where members can have their products tested at an affordable cost. The lab capabilities cover all tests (except evap) that may be required by CARB for the purposes of obtaining an EO for both gasoline and diesel vehicles. There are other test laboratories around the country as well. SEMA encourages it members to pursue testing of applicable emissions-related products for highway vehicles. For more information: www.semagarage.com.

By SEMA Washington, D.C., Staff

The California Air Resources Board (CARB) recently issued a letter inviting companies to disclose by December 31, 2020, any unapproved hardware or software programs that impact emissions-control systems in vehicles sold in California. The letter specifically cited auxiliary emission-control devices (AECDs) installed on vehicles. An AECD is defined as any element of design which senses temperature, vehicle speed, engine RPM, transmission gear, manifold vacuum or any other parameter for the purpose of activating, modulating, delaying or deactivating the operation of any part of the emission control system.

In 2015, regulators discovered that Volkswagen had installed a program on turbocharged direct-injection diesel engine vehicles that activated emissions controls in a testing situation but not in real-world driving conditions. Other automakers were subsequently found to have installed AECDs whereby the vehicles produced different emissions results for highway use versus in regulatory test conditions. The violations resulted in settlements with substantial fines and recall mandates.  

CARB notes that some AECDs change the operation of emissions-control equipment when required by specific, sometimes extreme driving conditions, such as pulling a maximum load uphill in hot weather. CARB would consider the AECD legal if fully disclosed and if there is a technically justified rationale for its limited use.

CARB is scheduled to open a new state-of-the-art testing facility in Riverside, California, in 2021 that will include sophisticated detection and testing techniques to identify undisclosed AECDs and other unapproved changes in software and hardware that can affect emissions. CARB’s letter offers manufacturers an opportunity to voluntarily inform the agency of any previously undisclosed software devices or hardware for both on- and off-road applications. While CARB may still pursue an enforcement action, monetary penalties would likely be reduced 25%-75%.

While AECDs installed on automobiles may be a primary focus of the CARB letter, the agency’s voluntary disclosure offer also applies to aftermarket parts manufacturers. Companies may wish to conduct an internal audit in case there is a need to contact CARB before the December 31deadline. Issues to consider would include:

• Products being sold in California that don’t have an Executive Order (EO).
• Newer year models or part numbers that need to be updated for products with an EO.
• EO product changes/updates that change functionality for which CARB should be aware.
• Recalls or field fixes that have not been disclosed.

With respect to obtaining California EOs, the SEMA Garage was established to assist members in testing their emissions-related parts. The SEMA Garage makes experts and resources available to help members navigate the compliance process, including:

• Evaluation of your product and recommendations for compliance procedures.
• Assistance with the CARB EO process.
• Interaction with CARB staff on your behalf.
• Review and evaluation of test data.

The SEMA Garage includes a laboratory where members can have their products tested at an affordable cost. The lab capabilities cover all tests (except evap) that may be required by CARB for the purposes of obtaining an EO for both gasoline and diesel vehicles. There are other test laboratories around the country as well. SEMA encourages it members to pursue testing of applicable emissions-related products for highway vehicles. For more information: www.semagarage.com.

By SEMA Washington, D.C., Staff

The California Air Resources Board (CARB) recently issued a letter inviting companies to disclose by December 31, 2020, any unapproved hardware or software programs that impact emissions-control systems in vehicles sold in California. The letter specifically cited auxiliary emission-control devices (AECDs) installed on vehicles. An AECD is defined as any element of design which senses temperature, vehicle speed, engine RPM, transmission gear, manifold vacuum or any other parameter for the purpose of activating, modulating, delaying or deactivating the operation of any part of the emission control system.

In 2015, regulators discovered that Volkswagen had installed a program on turbocharged direct-injection diesel engine vehicles that activated emissions controls in a testing situation but not in real-world driving conditions. Other automakers were subsequently found to have installed AECDs whereby the vehicles produced different emissions results for highway use versus in regulatory test conditions. The violations resulted in settlements with substantial fines and recall mandates.  

CARB notes that some AECDs change the operation of emissions-control equipment when required by specific, sometimes extreme driving conditions, such as pulling a maximum load uphill in hot weather. CARB would consider the AECD legal if fully disclosed and if there is a technically justified rationale for its limited use.

CARB is scheduled to open a new state-of-the-art testing facility in Riverside, California, in 2021 that will include sophisticated detection and testing techniques to identify undisclosed AECDs and other unapproved changes in software and hardware that can affect emissions. CARB’s letter offers manufacturers an opportunity to voluntarily inform the agency of any previously undisclosed software devices or hardware for both on- and off-road applications. While CARB may still pursue an enforcement action, monetary penalties would likely be reduced 25%-75%.

While AECDs installed on automobiles may be a primary focus of the CARB letter, the agency’s voluntary disclosure offer also applies to aftermarket parts manufacturers. Companies may wish to conduct an internal audit in case there is a need to contact CARB before the December 31deadline. Issues to consider would include:

• Products being sold in California that don’t have an Executive Order (EO).
• Newer year models or part numbers that need to be updated for products with an EO.
• EO product changes/updates that change functionality for which CARB should be aware.
• Recalls or field fixes that have not been disclosed.

With respect to obtaining California EOs, the SEMA Garage was established to assist members in testing their emissions-related parts. The SEMA Garage makes experts and resources available to help members navigate the compliance process, including:

• Evaluation of your product and recommendations for compliance procedures.
• Assistance with the CARB EO process.
• Interaction with CARB staff on your behalf.
• Review and evaluation of test data.

The SEMA Garage includes a laboratory where members can have their products tested at an affordable cost. The lab capabilities cover all tests (except evap) that may be required by CARB for the purposes of obtaining an EO for both gasoline and diesel vehicles. There are other test laboratories around the country as well. SEMA encourages it members to pursue testing of applicable emissions-related products for highway vehicles. For more information: www.semagarage.com.

By Mike Imlay

SEMA Market Research Manager Matt Kennedy

SEMA Market Research Director Gavin Knapp

They don’t make ‘em like they used to. Classic cars and trucks represent a vital piece of the aftermarket, but understanding opportunities in the space poses some unique challenges. SEMA360 attendees got a sneak peek at the latest market research surrounding vintage vehicles and their accessorization, thanks to a Wednesday seminar presented by SEMA Market Research Director Gavin Knapp and SEMA Market Research Manager Matt Kennedy.

Entitled “Classic Cars, Modern Markets,” the seminar aimed to arm attendees with the latest data on market sizing, consumer demographics, their purchasing habits and vehicle usage, and even the shifting definition of what constitutes a vintage model.

“We’re talking about a significant volume of cars still driving around, still being cherished and loved by their owners, and of course that means they need to buy parts from our industry,” said Knapp. “Obviously classic vehicles are a great, great platform for accessorization and modification. We estimate that last year, 2019, consumers spent almost $1 billion buying accessories and customization parts for older cars.”

Kennedy also presented some of the most noteworthy takeaways from a still-unreleased SEMA research report on the market:

• First, retail automotive chains account for most consumer purchase, but there is untapped opportunity for independents as well.
• Although the consumer demographic skews older, a younger customer base is steadily emerging. Moreover, consumers in this space may research online, but prefer to purchase from retail outlets where they can have meaningful conversations about their vehicles and the parts they seek.
• Most of all, the demographic see their vehicles as drivers to be enjoyed and shown off on the road. Alongside full restorations, the restomod trend continues to grow.
• Once dominated by ’60s and mid’‘70s musclecars, the vintage category is now expanding to include late ’70s, ’80s and even ’90s vehicles. There is an especially interesting trend toward trucks as well, notably among younger enthusiasts.

The full seminar can be viewed on SEMA360.

This session represents just a few of the many educational opportunities being served up at SEMA360, which continues through Friday, November 6. The SEMA Week event also offers exclusive manufacturer-buyer connections, industry networking, new-product and technology introductions, project vehicle builds and more. Additional details about the innovative e-marketplace can be found at www.sema360.com.

By Mike Imlay

SEMA Market Research Manager Matt Kennedy

SEMA Market Research Director Gavin Knapp

They don’t make ‘em like they used to. Classic cars and trucks represent a vital piece of the aftermarket, but understanding opportunities in the space poses some unique challenges. SEMA360 attendees got a sneak peek at the latest market research surrounding vintage vehicles and their accessorization, thanks to a Wednesday seminar presented by SEMA Market Research Director Gavin Knapp and SEMA Market Research Manager Matt Kennedy.

Entitled “Classic Cars, Modern Markets,” the seminar aimed to arm attendees with the latest data on market sizing, consumer demographics, their purchasing habits and vehicle usage, and even the shifting definition of what constitutes a vintage model.

“We’re talking about a significant volume of cars still driving around, still being cherished and loved by their owners, and of course that means they need to buy parts from our industry,” said Knapp. “Obviously classic vehicles are a great, great platform for accessorization and modification. We estimate that last year, 2019, consumers spent almost $1 billion buying accessories and customization parts for older cars.”

Kennedy also presented some of the most noteworthy takeaways from a still-unreleased SEMA research report on the market:

• First, retail automotive chains account for most consumer purchase, but there is untapped opportunity for independents as well.
• Although the consumer demographic skews older, a younger customer base is steadily emerging. Moreover, consumers in this space may research online, but prefer to purchase from retail outlets where they can have meaningful conversations about their vehicles and the parts they seek.
• Most of all, the demographic see their vehicles as drivers to be enjoyed and shown off on the road. Alongside full restorations, the restomod trend continues to grow.
• Once dominated by ’60s and mid’‘70s musclecars, the vintage category is now expanding to include late ’70s, ’80s and even ’90s vehicles. There is an especially interesting trend toward trucks as well, notably among younger enthusiasts.

The full seminar can be viewed on SEMA360.

This session represents just a few of the many educational opportunities being served up at SEMA360, which continues through Friday, November 6. The SEMA Week event also offers exclusive manufacturer-buyer connections, industry networking, new-product and technology introductions, project vehicle builds and more. Additional details about the innovative e-marketplace can be found at www.sema360.com.