The U.S. Court of International Trade ruled against Giti Tire Global Trading Pte. Ltd. and its affiliates in a case concerning antidumping duties on certain tires imported from China. The court's decision, issued on June 12, 2026, upheld the U.S. Department of Commerce's calculations regarding the surrogate value for ocean freight and the liquidation instructions for unreported entries. This ruling is significant as it affects the import practices of foreign manufacturers and the enforcement of trade laws.
Giti Tire, along with its affiliates Giti Radial Tire (Anhui) Company Ltd. and Giti Tire (Fujian) Company Ltd., challenged the Department of Commerce's amended final results from the seventh administrative review of the antidumping order on passenger vehicle and light truck tires from China. The case, docket number 24-00083, arose after Commerce calculated antidumping duties based on a surrogate value for ocean freight that Giti argued was incorrect. The company sought a remand of the decision, claiming that the assessment policy applied to their unreported entries was inappropriate.
The dispute began when Commerce initiated the seventh administrative review on October 11, 2022, covering the period from August 1, 2021, to July 31, 2022. Giti Tire was selected as a mandatory respondent, along with several other affiliates, and was required to report its U.S. sales data. The company reported some sales but did not include all entries during the review period, leading to the application of the China-wide antidumping rate for those unreported entries.
In its ruling, the court addressed two main issues raised by Giti: the calculation of the surrogate value for ocean freight and the liquidation instructions for unreported entries. Giti argued that Commerce's calculation did not accurately reflect the costs associated with ocean freight, as it was based solely on weight rather than incorporating distance traveled. The court found that Commerce's methodology was supported by substantial evidence and in accordance with law.
Judge Richard K. Eaton stated in the opinion, "Giti's proposed calculation of the ocean freight surrogate value would distort the Maersk data" because the distance was already factored into the shipping rates provided by Maersk. The court noted that Giti's method of calculating the surrogate value would lead to an inaccurate representation of shipping costs, as the Maersk data varied based on destination and did not consistently reflect distance as a direct cost factor.
The court also upheld Commerce's decision regarding the liquidation instructions. Giti had requested that all entries, including unreported ones, be liquidated at its separate rate rather than the China-wide rate. However, the court agreed with Commerce's assessment policy, which mandates that unreported entries from non-market economy countries be liquidated at the country-wide rate. Judge Eaton emphasized that Giti did not raise concerns about this policy during the administrative review process, which limited their ability to contest it in court.
This ruling has significant implications for Giti Tire and other foreign manufacturers importing goods into the United States. It reinforces the U.S. Department of Commerce's authority to set antidumping duties based on surrogate values and to apply stringent liquidation instructions for unreported entries. The decision also highlights the complexities involved in calculating antidumping duties, particularly for companies operating in non-market economies like China.
Looking ahead, Giti may consider appealing the court's decision, although the opinion did not specify whether an appeal is planned. The ruling sets a precedent for how the U.S. government calculates antidumping duties and may influence future cases involving similar issues. As trade regulations continue to evolve, companies engaged in international trade must stay informed about the legal landscape surrounding antidumping measures and compliance requirements.