[Federal Register Volume 85, Number 72 (Tuesday, April 14, 2020)]
[Notices]
[Pages 20670-20675]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07864]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-124]


Certain Vertical Shaft Engines Between 99cc and Up to 225cc, and 
Parts Thereof From the People's Republic of China: Initiation of Less-
Than-Fair-Value Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

DATES: Applicable April 7, 2020.

FOR FURTHER INFORMATION CONTACT: Manuel Rey or Whitley Herndon, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-5518 or (202) 482-6274, 
respectively.

SUPPLEMENTARY INFORMATION: 

The Petition

    On March 18, 2020, the U.S. Department of Commerce (Commerce) 
received an antidumping duty (AD) petition concerning imports of 
certain vertical shaft engines between 99cc and up to 225cc, and parts 
thereof (small vertical engines) from the People's Republic of China 
(China), filed in proper form on behalf of the Briggs and Stratton 
Corporation (the petitioner).\1\

[[Page 20671]]

The Petition was accompanied by a countervailing duty (CVD) petition 
concerning imports of small vertical engines from China.
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Certain Vertical Shaft 
Engines between 99cc and up to 225cc, and Parts Thereof from the 
People's Republic of China,'' dated March 18, 2020 (the Petition).
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    On March 20, 2020, Commerce requested supplemental information 
pertaining to certain aspects of the Petitions,\2\ to which the 
petitioner filed responses on March 24, 2020.\3\
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    \2\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Vertical 
Shaft Engines between 99cc and up to 225cc, and Parts Thereof from 
the People's Republic of China: Supplemental Questions Concerning 
Volume I,'' dated March 20, 2020; see also ``Petition for the 
Imposition of Antidumping Duties on imports of Certain Vertical 
Shaft Engines between 99cc and up to 225cc, and Parts Thereof from 
the People's Republic of China: Supplemental Questions Concerning 
Volume II,'' dated March 20, 2020.
    \3\ See Petitioner's Letter, ``Certain Vertical Shaft Engines 
Between 99cc and Up To 225cc, and Parts Thereof, from The People's 
Republic of China/Responses of Briggs & Stratton Corporation to 
Volume II Supplemental Questionnaire,'' dated March 24, 2020 (AD 
Supplement); see also Petitioner's letter to Commerce, ``Certain 
Vertical Shaft Engines between 99cc and up to 225cc, and Parts 
Thereof, from the People's Republic of China/Response of Briggs and 
Stratton Corporation to Volume I Supplemental Questionnaire,'' dated 
March 24, 2020 (General Issues Supplement).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of small 
vertical engines from China are being, or are likely to be, sold in the 
United States at less than fair value (LTFV) within the meaning of 
section 731 of the Act, and that such imports are materially injuring, 
or threatening material injury to, the domestic industry producing 
small vertical engines in the United States. Consistent with section 
732(b)(1) of the Act, the Petition is accompanied by information 
reasonably available to the petitioner supporting its allegations.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry, because the petitioner is an interested party, 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioner demonstrated sufficient industry support with respect to 
the initiation of the requested AD investigation.\4\
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    \4\ See ``Determination of Industry Support for the Petition'' 
section, infra.
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Period of Investigation

    Because China is a non-market economy (NME) country, pursuant to 19 
CFR 351.204(b)(1), and because the Petition was filed on March 18, 
2020, the period of investigation (POI) is July 1, 2019 through 
December 31, 2019.

Scope of the Investigation

    The merchandise covered by this investigation is small vertical 
engines from China. For a full description of the scope of this 
investigation, see the appendix to this notice.

Comments on Scope of the Investigation

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\5\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\6\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on April 27, 2020, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on May 7, 2020, which is 10 
calendar days from the initial comment deadline.\7\
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    \5\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \6\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \7\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such comments must also be filed 
on the record of the concurrent CVD investigation.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's (E&C's) Antidumping Duty and 
Countervailing Duty Centralized Electronic Service System (ACCESS), 
unless an exception applies.\8\ An electronically filed document must 
be received successfully in its entirety by the time and date it is 
due.
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    \8\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of small vertical engines 
to be reported in response to Commerce's AD questionnaire. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to report the relevant factors of 
production (FOPs) accurately, as well as to develop appropriate 
product-comparison criteria.
    Interested parties may provide any information or comments that 
they believe are relevant to the development of an accurate list of 
physical characteristics. In order to consider the suggestions of 
interested parties in developing and issuing the AD questionnaire, all 
comments must be filed by 5:00 p.m. ET on April 27, 2020, which is 20 
calendar days from the signature date of this notice. Any rebuttal 
comments, which may include factual information, must be filed by 5:00 
p.m. ET on May 7, 2020, which is 10 calendar days from the initial 
comment deadline.\9\ All comments and submissions to Commerce must be 
filed electronically using ACCESS, as explained above, on the record of 
this AD investigation.
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    \9\ See 19 CFR 351.303(b).
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Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the Petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''

[[Page 20672]]

    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\10\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\11\
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    \10\ See section 771(10) of the Act.
    \11\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\12\ Based on our analysis of the information 
submitted on the record, we have determined that small vertical 
engines, as defined in the scope, constitute a single domestic like 
product, and we have analyzed industry support in terms of that 
domestic like product.\13\
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    \12\ See Volume I of the Petition at 13-15; see also General 
Issues Supplement at 2-4 and Exhibit Supp-I-2.
    \13\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Antidumping Duty Investigation Initiation Checklist: Certain 
Vertical Shaft Engines between 99cc and up to 225cc, and Parts 
Thereof from the People's Republic of China (China AD Initiation 
Checklist) at Attachment II, ``Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Certain 
Vertical Shaft Engines between 99cc and up to 225cc, and Parts 
Thereof from the People's Republic of China'' (Attachment II), dated 
concurrently with this notice and on file electronically via ACCESS.
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
2019 production of the domestic like product.\14\ The petitioner 
estimated the production of the domestic like product for the entire 
domestic industry based on its own knowledge of the industry.\15\ The 
petitioner compared its 2019 production of domestic like product to the 
estimated total production of the domestic like product for the entire 
domestic industry.\16\ We relied on data provided by the petitioner for 
purposes of measuring industry support.\17\
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    \14\ See Volume I of the Petition at 3 and Exhibits I-1 and I-2.
    \15\ Id. at 3-4 and Exhibits I-1-I-6.
    \16\ Id. at 3-4 and Exhibits I-1 and I-2.
    \17\ Id. at 3-4 and Exhibits I-1-I-6. For further discussion, 
see China AD Initiation Checklist at Attachment II.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\18\ First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\19\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\20\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\21\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.\22\
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    \18\ See China AD Initiation Checklist at Attachment II.
    \19\ See section 732(c)(4)(D) of the Act; see also China AD 
Initiation Checklist at Attachment II; and Volume I of the Petition 
at 3-4 and Exhibits I-1-I-6.
    \20\ See China AD Initiation Checklist at Attachment II; see 
also Volume I of the Petition at 3-4 and Exhibits I-1-I-6.
    \21\ Id.
    \22\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\23\
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    \23\ See Volume I of the Petition at 18 and Exhibit I-15.
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
lost sales and revenues; impacts on the domestic industry's financial 
condition; and a shuttered manufacturing facility.\24\ We have assessed 
the allegations and supporting evidence regarding material injury, 
threat of material injury, causation, as well as negligibility, and we 
have determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\25\
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    \24\ Id. at 18-29 and Exhibits I-2, I-7, and I-11-I-21.
    \25\ See China AD Initiation Checklist at Attachment III, 
``Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Vertical Shaft Engines between 99cc and up to 225cc, and 
Parts thereof from the People's Republic of China'' (Attachment 
III).
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Allegations of Sales at Less Than Fair Value

    The following is a description of the allegation of sales at LTFV 
upon which Commerce based its decision to initiate an AD investigation 
of small vertical engines from China. The sources of data for the 
deductions and adjustments relating to U.S. price and normal value (NV) 
are discussed in greater detail in the AD Initiation Checklist.

Export Price

    The petitioner based export price (EP) on sales offers to a U.S. 
customer in the United States for the sale of small vertical engines 
produced in and exported from China.\26\ In order to calculate ex-
factory U.S. prices, where appropriate, the petitioner made

[[Page 20673]]

deductions from U.S. prices for foreign inland freight.\27\
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    \26\ See Volume II of the Petition at 4-5 and Exhibit II-5.
    \27\ Id. at 4-8 and Exhibits II-4, II-5A, II-5B, II-6, II-7, II-
8, and II-13.
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Normal Value

    Commerce considers China to be an NME country.\28\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of this investigation. Accordingly, NV in 
China is appropriately based on FOPs valued in a surrogate market 
economy country, in accordance with section 773(c) of the Act.\29\
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    \28\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and 
accompanying Preliminary Decision Memorandum at ``China's Status as 
a Non-Market Economy,'' unchanged in Certain Aluminum Foil from the 
People's Republic of China: Final Determination of Sales at Less 
Than Fair Value, 83 FR 9282 (March 5, 2018).
    \29\ See China AD Initiation Checklist.
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    The petitioner claims that Turkey is an appropriate surrogate 
country for China, because it is a market economy country that is at a 
level of economic development comparable to that of China and it is a 
significant producer of comparable merchandise.\30\ The petitioner 
valued direct material inputs and packing materials using the Global 
Trade Atlas, data from the International Energy Agency to value 
electricity and natural gas, and data from the International Labor 
Organization to value labor.\31\ Based on the information provided by 
the petitioner, we determine that it is appropriate to use Turkey as a 
surrogate country for purposes of initiation.\32\
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    \30\ See Volume II of the Petition at 2-4 and Exhibits II-2 and 
II-3.
    \31\ Id. at 5-8 and Exhibit II-7-Exhibit II-16; see also AD 
Supplement at 3-4 and Exhibit Supp-II-3 and Supp-II-4.
    \32\ See China AD Initiation Checklist.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs, within 30 days before the 
scheduled date of the preliminary determination.

Factors of Production

    Because information regarding the volume of inputs consumed by 
Chinese producers/exporters was not reasonably available, the 
petitioner used its own product-specific consumption rates as a 
surrogate to estimate a Chinese manufacturer's FOPs.\33\ The petitioner 
valued the estimated FOPs using surrogate values from Turkey.\34\ The 
petitioner calculated factory overhead, selling, general and 
administrative expenses, and profit based on the experience of a 
Turkish producer of comparable merchandise (i.e., radiators, boilers, 
heat pumps, motors, and other products).\35\
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    \33\ Id. at 9; see also Volume II of the Petition at Exhibit II-
9.
    \34\ See China AD Initiation Checklist at 9; see also Volume II 
of the Petition at Exhibit II-7-Exhibit II-16.
    \35\ See Volume II of the Petition at 4 and Exhibits II-16a and 
II-16b.
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Fair Value Comparisons

    Based on the data provided in the Petition, there is reason to 
believe that imports of small vertical engines from China are being, or 
are likely to be, sold in the United States at LTFV. Based on 
comparisons of EP to NV, in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for small vertical engines from 
China range from 457.52 percent to 541.75 percent.\36\
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    \36\ See AD Supplement at 2-4 and Exhibit Supp-II-5; see also 
China AD Initiation Checklist.
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Initiation of LTFV Investigation

    We find that the Petition on small vertical engines from China 
meets the requirements of section 732 of the Act. Therefore, we are 
initiating an AD investigation to determine whether imports of small 
vertical engines from China are being, or are likely to be, sold in the 
United States at LTFV. In accordance with section 733(b)(1)(A) of the 
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determination no later than 140 days after the date of this 
initiation.

Respondent Selection

    The petitioner named 43 companies in China as producers/exporters 
of small vertical engines.\37\ In accordance with our standard practice 
for respondent selection in AD investigations involving NME countries, 
Commerce selects respondents based on quantity and value (Q&V) 
questionnaires in cases where it has determined that the number of 
companies is large and it cannot individually examine each company 
based upon its resources. Therefore, considering the number of 
producers and exporters identified in the Petition, Commerce will 
solicit Q&V information that can serve as a basis for selecting 
exporters for individual examination in the event that Commerce decides 
to limit the number of respondents individually examined pursuant to 
section 777A(c)(2) of the Act. Furthermore, Commerce has determined to 
limit the number of Q&V questionnaires that it will send out to 
exporters and producers based on U.S. Customs and Border Protection 
(CBP) data for U.S. imports of small vertical engines during the POI 
under the appropriate Harmonized Tariff Schedule of the United States 
numbers listed in the ``Scope of the Investigation,'' in the appendix. 
Accordingly, Commerce will send Q&V questionnaires to the largest 
producers and exporters that are identified in the CBP data for which 
there is address information on the record.
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    \37\ See Volume I of the Petition at Exhibit I-9; and General 
Issues Supplement at 1 and Revised Exhibit I-9.
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    In addition, Commerce will post the Q&V questionnaire along with 
filing instructions on E&C's website at http://www.trade.gov/enforcement/news.asp. Producers/exporters of small vertical engines 
from China that do not receive Q&V questionnaires may still submit a 
response to the Q&V questionnaire and can obtain a copy of the Q&V 
questionnaire from E&C's website. In accordance with the standard 
practice for respondent selection in AD cases involving NME countries, 
in the event Commerce decides to limit the number of respondents 
individually investigated, Commerce intends to base respondent 
selection on the responses to the Q&V questionnaire that it receives.
    The Q&V questionnaire response must be submitted by the relevant 
Chinese exporters/producers no later than April 23, 2020. All Q&V 
questionnaire responses must be filed electronically via ACCESS.
    On April 1, 2020, Commerce released CBP data on imports of small 
vertical engines from China under administrative protective order (APO) 
to all parties with access to information protected by APO, and 
indicated that interested parties wishing to comment on the CBP data 
must do so within three business days of the publication date of the 
notice of initiation of this investigation.\38\ We further stated that 
we will not accept rebuttal comments.
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    \38\ See Memorandum, ``Certain Vertical Shaft Engines Between 
99cc and Up To 225cc, and Parts Thereof, from China Antidumping Duty 
Petition: Release of Customs Data from U.S. Customs and Border 
Protection Data,'' dated April 1, 2020.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Commerce website at http://enforcement.trade.gov/apo.
    Comments must be filed electronically using ACCESS. An 
electronically filed document must be

[[Page 20674]]

received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above. Commerce intends to finalize its 
decisions regarding respondent selection within 20 days of publication 
of this notice.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\39\ 
The specific requirements for submitting a separate-rate application in 
a China investigation are outlined in detail in the application itself, 
which is available on E&C's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30 
days after publication of this initiation notice.\40\ Exporters and 
producers who submit a separate-rate application and have been selected 
as mandatory respondents will be eligible for consideration for 
separate-rate status only if they respond to all parts of Commerce's AD 
questionnaire as mandatory respondents. Commerce requires that 
companies from China submit a response to both the Q&V questionnaire 
and the separate-rate application by the respective deadlines in order 
to receive consideration for separate-rate status. Companies not filing 
a timely Q&V questionnaire response will not receive separate rate 
consideration.
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    \39\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving Non-Market Economy Countries (April 5, 2005), available at 
http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 
05.1).
    \40\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

    {w{time} hile continuing the practice of assigning separate 
rates only to exporters, all separate rates that Commerce will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\41\
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    \41\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the Government of China via ACCESS.
    Furthermore, to the extent practicable, Commerce will attempt to 
provide a copy of the public version of the Petition to each exporter 
named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of small vertical engines from China are 
materially injuring or threatening material injury to a U.S. 
industry.\42\ A negative ITC determination will result in the 
investigation being terminated.\43\ Otherwise, this investigation will 
proceed according to statutory and regulatory time limits.
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    \42\ See section 733(a) of the Act.
    \43\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \44\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\45\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Please review the regulations prior to 
submitting factual information in this investigation.
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    \44\ See 19 CFR 351.301(b).
    \45\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, Commerce may elect to specify a different 
time limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, standalone submission; under limited circumstances Commerce 
will grant untimely filed requests for the extension of time limits. 
Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests 
or factual information in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\46\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\47\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \46\ See section 782(b) of the Act.
    \47\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO

[[Page 20675]]

in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on E&C's website at http://enforcement.trade.gov/apo.
    On January 22, 2008, Commerce published Antidumping and 
Countervailing Duty Proceedings: Documents Submission Procedures; APO 
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to 
participate in this investigation should ensure that they meet the 
requirements of these procedures (e.g., the filing of letters of 
appearance as discussed in 19 CFR 351.103(d)). Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until May 19, 2020, unless 
extended.\48\
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    \48\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020).
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    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: April 7, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigation

    The merchandise covered by this investigation consists of spark-
ignited, non-road, vertical shaft engines, whether finished or 
unfinished, whether assembled or unassembled, whether mounted or 
unmounted, primarily for walk-behind lawn mowers. Engines meeting 
this physical description may also be for other non-hand-held 
outdoor power equipment, including but not limited to, pressure 
washers. The subject engines are spark ignition, single-cylinder, 
air cooled, internal combustion engines with vertical power take off 
shafts with a minimum displacement of 99 cubic centimeters (cc) and 
a maximum displacement of up to, but not including, 225cc. 
Typically, engines with displacements of this size generate gross 
power of between 1.95 kilowatts (kw) to 4.75 kw.
    Engines covered by this scope normally must comply with and be 
certified under Environmental Protection Agency (EPA) air pollution 
controls title 40, chapter I, subchapter U, part 1054 of the Code of 
Federal Regulations standards for small non-road spark-ignition 
engines and equipment. Engines that otherwise meet the physical 
description of the scope but are not certified under 40 CFR part 
1054 and are not certified under other parts of subchapter U of the 
EPA air pollution controls are not excluded from the scope of this 
proceeding. Engines that may be certified under both 40 CFR part 
1054 as well as other parts of subchapter U remain subject to the 
scope of this proceeding.
    Certain small vertical shaft engines, whether or not mounted on 
non-hand-held outdoor power equipment, including but not limited to 
walk-behind lawn mowers and pressure washers, are included in the 
scope. However, if a subject engine is imported mounted on such 
equipment, only the engine is covered by the scope. Subject 
merchandise includes certain small vertical shaft engines produced 
in the subject country whether mounted on outdoor power equipment in 
the subject country or in a third country. Subject engines are 
covered whether or not they are accompanied by other parts.
    For purposes of this investigation, an unfinished engine covers 
at a minimum a sub-assembly comprised of, but not limited to, the 
following components: crankcase, crankshaft, camshaft, piston(s), 
and connecting rod(s). Importation of these components together, 
whether assembled or unassembled, and whether or not accompanied by 
additional components such as a sump, carburetor spacer, cylinder 
head(s), valve train, or valve cover(s), constitutes an unfinished 
engine for purposes of this investigation. The inclusion of other 
products such as spark plugs fitted into the cylinder head or 
electrical devices (e.g., ignition coils) for synchronizing with the 
engine to supply tension current does not remove the product from 
the scope. The inclusion of any other components not identified as 
comprising the unfinished engine subassembly in a third country does 
not remove the engine from the scope.
    The engines subject to this investigation are predominantly 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) at subheading 8407.90.1010. The engine subassemblies that 
are subject to this investigation enter under HTSUS 8409.91.9990. 
The mounted engines that are subject to this investigation enter 
under HTSUS 8433.11.0050, 8433.11.0060, and 8424.30.9000. Engines 
subject to this investigation may also enter under HTSUS 
8407.90.1020, 8407.90.9040, and 8407.90.9060. The HTSUS subheadings 
are provided for convenience and customs purposes only, and the 
written description of the merchandise under investigation is 
dispositive.
[FR Doc. 2020-07864 Filed 4-13-20; 8:45 am]
 BILLING CODE 3510-DS-P