[Federal Register Volume 85, Number 211 (Friday, October 30, 2020)]
[Notices]
[Pages 68848-68851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24050]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-130]


Certain Walk-Behind Lawn Mowers and Parts Thereof From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain walk-behind lawn mowers and parts thereof (lawn 
mowers), from the People's Republic of China (China). The period of 
investigation is January 1, 2019 through December 31, 2019. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable October 30, 2020.

FOR FURTHER INFORMATION CONTACT: Moses Song or Tyler Weinhold, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-7885 or (202) 482-1121, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on June 22, 
2020.\1\ On August 3, 2020, Commerce postponed the preliminary 
determination of this investigation to October 23, 2020.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics

[[Page 68849]]

discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
http://access.trade.gov. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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    \1\ See Certain Walk-Behind Lawn Mowers and Parts Thereof from 
the People's Republic of China: Initiation of Countervailing Duty 
Investigation, 85 FR 37426 (June 22, 2020) (Initiation Notice).
    \2\ See Certain Walk-Behind Lawn Mowers and Parts Thereof from 
the People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 85 FR 46587 
(August 3, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Walk-Behind Lawn Mowers and Parts Thereof from the People's Republic 
of China,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are lawn mowers from 
China. For a complete description of the scope of this investigation, 
see Appendix I.
    At the time of the filing of the petition, there were ongoing 
antidumping (AD) and countervailing duty (CVD) investigations on 
certain vertical shaft engines between 99cc and up to 225cc, and parts 
thereof (small vertical engines), from China.\4\ The scope of the small 
vertical engines from China investigations covers engines ``whether 
mounted or unmounted, primarily for walk-behind lawn mowers. Engines 
meeting this physical description may also be for other non-handheld 
outdoor power equipment, including but not limited to, pressure 
washers.'' The small vertical engines scope also provides that ``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.'' \5\ This creates an overlap between the scopes of these 
proceedings.
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    \4\ See Certain Vertical Shaft Engines Between 99cc and up to 
225cc, and Parts Thereof, from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 85 FR 52086 (August 24, 2020); see also Certain 
Vertical Shaft Engines Between 99cc and Up to 225cc, and Parts 
Thereof, from the People's Republic of China: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, and 
Preliminary Affirmative Determination of Critical Circumstances, in 
Part, 85 FR 66932 (October 21, 2020).
    \5\ Id.
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    Therefore, for the purpose of Customs and Border Protection (CBP)'s 
administration, where the engine of a lawn mower is also covered by the 
scope of the small vertical engines from China CVD proceeding, parties 
are instructed to enter their merchandise under the CVD case number 
associated with the small vertical engines proceedings (C-570-125) and 
post CVDs in accordance with the cash deposit rates applicable in that 
case. Specifically, at this time, the CVDs will be applicable to the 
value of the small vertical engine, not the residual value of the 
mower. We are making no change to the scope of this proceeding at this 
time. As discussed below, we will be setting aside a separate period of 
time for parties to comment on this issue.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\6\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\7\ No interested 
parties timely commented on the scope of the investigation and thus 
Commerce is not changing the scope language as it appeared in the 
Initiation Notice.\8\
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    \6\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \7\ See Initiation Notice.
    \8\ On September 23, 2020, Ningbo Daye requested permission to 
file comments on the scope language in the Initiation Notice. 
Commerce rejected this request because it was submitted after the 
deadline.
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    Commerce will be setting aside a separate period of time for 
parties to comment on the issue of the overlap in the scopes of the 
lawn mowers and small vertical engines AD and CVD proceedings.

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\9\
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    \9\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making these findings, Commerce is relying, in part, on facts 
available. Because we find that one or more respondents failed to 
cooperate by not acting to the best of their ability to respond to 
Commerce's requests for information, Commerce drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\10\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \10\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of lawn mowers 
from China based on a request made by the petitioner.\11\ Consequently, 
the final CVD determination will be issued on the same date as the 
final AD determination, which is currently scheduled to be issued no 
later than March 8, 2021, unless postponed.
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    \11\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Walk-Behind Lawn 
Mowers from China: Request to Align Final Countervailing Duty 
Determination with the Companion Antidumping Duty Final 
Determination,'' dated October 15, 2020.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated individual estimated 
countervailable subsidy rates for Ningbo Daye Garden Machinery Co., 
Ltd. (Ningbo Daye) and Zhejiang Amerisun Technology Co. (Zhejiang 
Amerisun) that are not zero, de minimis, or based entirely on facts 
otherwise available. Commerce calculated the all-others rate using the 
mandatory respondents' publicly ranged U.S. export sales values for the 
subject merchandise.\12\
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    \12\ We calculated the all-others rate as the weighted average 
of the estimated subsidy rates for Ningbo Daye and Zhejiang 
Amerisun, using their publicly ranged U.S. export sales value for 
the subject merchandise because it is closer to the weighted average 
of the estimated subsidy rates calculated for the mandatory using 
their business proprietary export sales values than the simple 
average of the estimated subsidy rates.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \13\ Commerce preliminarily determines that the following 
company is cross-owned with Ningbo Daye Garden Machinery Co., Ltd.: 
Zhejiang Jindaye Holdings Limited. See Preliminary Decision 
Memorandum at 36. This rate applies to all cross-owned companies.

[[Page 68850]]



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                                                           Subsidy rate
                         Company                             (percent)
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Zhejiang Amerisun Technology Co., Ltd...................           22.74
Ningbo Daye Garden Machinery Co., Ltd\13\...............           14.68
All Others..............................................           17.19
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section that are entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
this notice in the Federal Register. Further, pursuant to 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the rates indicated above.

Disclosure

    Commerce intends to disclose to interested parties its calculations 
and analysis performed in this preliminary determination within five 
days of its public announcement, or if there is no public announcement, 
within five days of the date of this notice in accordance with 19 CFR 
351.224(b).

Verification

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Commerce will 
notify interested parties of the deadline for the submission of case 
briefs. Rebuttal briefs, limited to issues raised in case briefs, may 
be submitted no later than seven days after the deadline date for case 
briefs.\14\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this investigation are 
encouraged to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.
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    \14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020); and 
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020) 
(Temporary Rule).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a date and time to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\15\
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    \15\ See Temporary Rule.
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: October 23, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of 
certain rotary walk-behind lawn mowers, which are grass-cutting 
machines that are powered by internal combustion engines. The scope 
of the investigation cover certain walk-behind lawn mowers, whether 
self-propelled or non-self-propelled, whether finished or 
unfinished, whether assembled or unassembled, and whether containing 
any additional features that provide for functions in addition to 
mowing.
    Walk-behind lawn mowers within the scope of this investigation 
are only those powered by an internal combustion engine with a power 
rating of less than 3.7 kilowatts. These internal combustion engines 
are typically spark ignition, single or multiple cylinder, air 
cooled, internal combustion engines with vertical power take off 
shafts with a maximum displacement of 196cc. Walk-behind lawn mowers 
covered by this scope typically must be certified and comply with 
the Consumer Products Safety Commission Safety Standard For Walk-
Behind Power Lawn Mowers under the 16 CFR part 1205. However, lawn 
mowers that meet the physical descriptions above, but are not 
certified under 16 CFR part 1205 remain subject to the scope of this 
proceeding.
    The internal combustion engines of the lawn mowers covered by 
this scope typically must comply with and be certified under 
Environmental Protection Agency 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. However, lawn mowers that meet the physical descriptions 
above but that do not have engines certified under 40 CFR part 1054 
or other parts of subchapter U remain subject to the scope of this 
proceeding.
    For purposes of this investigation, an unfinished and/or 
unassembled lawn mower means at a minimum, a sub-assembly comprised 
of an engine and a cutting deck shell attached to one another. A 
cutting deck shell is the portion of the lawn mower--typically of 
aluminum or steel--that houses and protects a user from a rotating 
blade. Importation of the subassembly whether or not accompanied by, 
or attached to, additional components such as a handle, blade(s), 
grass catching bag, or wheel(s) constitute an unfinished lawn mower 
for purposes of this investigation. The inclusion in a third country 
of any components other than the mower sub-assembly does not remove 
the lawn mower from the scope. A lawn mower is within the scope of 
this investigation regardless of the origin of its engine.
    The lawn mowers subject to this investigation are typically at 
subheading: 8433.11.0050. Lawn mowers subject to this investigation 
may also enter under Harmonized Tariff Schedule of the United States 
(HTSUS) 8407.90.1010 and 8433.90.1090. The HTSUS subheadings are 
provided for convenience and customs purposes only, and the written 
description of the merchandise under investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences

[[Page 68851]]

VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Calculation of the All-Others Rate
XI. Recommendation

[FR Doc. 2020-24050 Filed 10-29-20; 8:45 am]
BILLING CODE 3510-DS-P