[Federal Register Volume 86, Number 84 (Tuesday, May 4, 2021)]
[Notices]
[Pages 23675-23678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09318]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-124, C-570-125]


Certain Vertical Shaft Engines Between 99cc and Up to 225cc, and 
Parts Thereof From the People's Republic of China: Antidumping and 
Countervailing Duty Orders

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the U.S. International Trade Commission (ITC), 
Commerce is issuing antidumping duty (AD) and countervailing duty (CVD) 
orders on certain vertical shaft engines between 99cc and up to 225cc, 
and parts thereof (small vertical engines) from the People's Republic 
of China (China).

DATES: Applicable May 4, 2021.

FOR FURTHER INFORMATION CONTACT: Benjamin Luberda (AD) or Ajay Menon 
(CVD), 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) 482-2185 
or (202) 482-1993, respectively.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with sections 705(d) and 735(d) of the Tariff Act of 
1930, as amended (the Act), on March 12, 2021, Commerce published its 
affirmative final determination of sales at less-than-fair-value (LTFV) 
\1\ and its affirmative final determination that countervailable 
subsidies are being provided to producers and exporters of small 
vertical engines from China.\2\ As part of these determinations, 
Commerce made affirmative critical circumstances findings for the 
Zongshen Group \3\ and the China-wide entity in the AD investigation 
and Chongqing Zongshen General Power Machine Co. in the CVD 
investigation.\4\ Commerce made negative critical circumstances 
findings for Chongqing Kohler Engines Ltd. (Chongqing Kohler) and the 
non-individually examined separate rate companies in the AD 
investigation and Chongqing Kohler and all other exporters and 
producers in the CVD investigation.\5\ On April 26, 2021, the ITC 
notified Commerce of its final affirmative determinations that an 
industry in the United States is materially injured by reason of LTFV 
imports and subsidized imports of small vertical engines from China, 
within the meaning of sections 705(b)(1)(A)(i) and 735(b)(1)(A)(i) of 
the Act.\6\ In addition, the ITC found that critical circumstances 
exist with regard to certain imports from China.
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    \1\ See Certain Vertical Shaft Engines Between 99cc and Up to 
225cc, and Parts Thereof, from the People's Republic of China: Final 
Affirmative Determination of Sales at Less Than Fair Value and Final 
Affirmative Determination of Critical Circumstances, in Part, 86 FR 
14077 (March 12, 2021) (LTFV Final Determination).
    \2\ See Certain Vertical Shaft Engines Between 99cc and Up To 
225cc, and Parts Thereof from the People's Republic of China: Final 
Affirmative Countervailing Duty Determination, 86 FR 14071 (March 
12, 2021) (CVD Final Determination).
    \3\ The Zongshen Group consists of Chongqing Zongshen General 
Power Machine Co., Ltd./Chongqing Dajiang Power Equipment Co., Ltd./
Chongqing Zongshen Power Machinery Co., Ltd.
    \4\ See LTFV Final Determination, 86 FR at 14077-140778; and CVD 
Final Determination, 86 FR at 14071, and accompanying Issues and 
Decision Memorandum at Comments 4 and 5.
    \5\ See LTFV Final Determination, 86 FR at 14078; and CVD Final 
Determination, 86 FR at 14071, and accompanying Issues and Decision 
Memorandum at Comments 4 and 5.
    \6\ See ITC's Letter, Notification of ITC Final Determinations, 
dated April 26, 2021 (ITC Notification).
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Scope of the Orders

    The products covered by these orders are small vertical engines 
from China. For a complete description of the scope of the orders, see 
Appendix I to this notice.

AD Order

    On April 26, 2021, in accordance with section 735(d) of the Act, 
the ITC notified Commerce of its final determinations that an industry 
in the United States is materially injured within the meaning of 
section 735(b)(1)(A)(i) of the Act by reason of imports of small 
vertical engines from China.\7\ Therefore, Commerce is issuing this AD 
order in accordance with sections 735(c)(2) and 736 of the Act. Because 
the ITC determined that imports of small vertical engines from China 
are materially injuring a U.S. industry, unliquidated entries of such 
merchandise from China entered, or withdrawn from warehouse, for 
consumption are subject to the assessment of antidumping duties. In 
addition, the ITC found that critical circumstances exist with regard 
to imports from China subject to Commerce's affirmative critical 
circumstances findings within the meaning of section 735(b)(4)(A) of 
the Act. As a result of Commerce's affirmative critical circumstances 
determination under section 735(a)(3) of the Act, and the ITC's 
affirmative

[[Page 23676]]

critical circumstances determination under section 735(b)(4)(A) of the 
Act, retroactive duties will be applied to the relevant imports for a 
period of 90 days prior to the suspension of liquidation.\8\
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    \7\ Id.
    \8\ See section 735(c)(4) of the Act; see also Statement of 
Administrative Action Accompanying the Uruguay Round Agreements Act, 
H.R. Doc. 103-316, vol. 1 (1994) (SAA) at 876 (``If both agencies 
make affirmative {critical circumstances{time}  determinations in 
their final investigations, retroactive duties will be applied for a 
period ninety days prior to suspension of liquidation.'')
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    Therefore, in accordance with section 736(a)(1) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
assess, upon further instruction by Commerce, antidumping duties equal 
to the amount by which the normal value of the merchandise exceeds the 
export price (or constructed export price) of the merchandise for all 
relevant entries of small vertical engines from China. With respect to 
AD entries from the Zongshen Group and the China-wide entity, 
antidumping duties will be assessed on unliquidated entries of small 
vertical engines from China entered, or withdrawn from warehouse, for 
consumption on or after July 23, 2020, which is 90 days prior to the 
date of publication of the LTFV Preliminary Determination, in 
accordance with the critical circumstances finding in the final 
determination.\9\ With respect to entries from Chongqing Kohler and 
companies not individually examined, but granted a separate rate, 
antidumping duties will be assessed on unliquidated entries of small 
vertical engines from China entered, or withdrawn from warehouse, for 
consumption on or after October 21, 2020, the date of publication of 
the LTFV Preliminary Determination.\10\ Antidumping duties will not be 
assessed on any entries occurring after the expiration of the 
provisional measures period and before publication of the ITC's final 
affirmative injury determinations, as further described below.
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    \9\ See 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) (LTFV 
Preliminary Determination).
    \10\ Id.
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Continuation of Suspension of Liquidation--AD

    In accordance with section 736 of the Act, we will instruct CBP to 
continue to suspend liquidation on all relevant entries of small 
vertical engines from China entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the ITC's final 
affirmative injury determinations in the Federal Register. These 
instructions suspending liquidation will remain in effect until further 
notice. For each producer and exporter combination, Commerce will also 
instruct CBP to require cash deposits for estimated antidumping duties 
equal to the cash deposit rates listed below.
    Accordingly, effective on the date of publication of the ITC's 
final affirmative injury determinations, CBP will require, at the same 
time as an importer of record would normally deposit estimated duties 
on the subject merchandise, a cash deposit for each entry of subject 
merchandise equal to the cash deposit rates listed below.\11\ As stated 
in the LTFV Final Determination, Commerce made certain adjustments for 
export subsidies from the CVD Final Determination to the estimated 
weighted-average dumping margin to determine each of the cash deposit 
rates.
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    \11\ See section 736(a)(3) of the Act.

----------------------------------------------------------------------------------------------------------------
                                                                                     Estimated     Cash deposit
                                                                                     weighted-    rate (adjusted
                   Exporter                                 Producer                  average       for subsidy
                                                                                  dumping margin     offsets)
                                                                                     (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
Chongqing Kohler Engines Ltd..................  Chongqing Kohler Engines Ltd....          374.31          374.31
Chongqing Zongshen General Power Machine Co.,   Chongqing Zongshen General Power          316.88          304.35
 Ltd./Chongqing Dajiang Power Equipment Co.,     Machine Co., Ltd./Chongqing
 Ltd./Chongqing Zongshen Power Machinery Co.,    Dajiang Power Equipment Co.,
 Ltd.                                            Ltd./Chongqing Zongshen Power
                                                 Machinery Co., Ltd.
Producers Supplying the Non-Individually-       Non-Individually-Examined                 342.88          336.61
 Examined Exporters Receiving Separate Rates     Exporters Receiving Separate
 (see Appendix II).                              Rates (see Appendix II).
China-Wide Entity.............................  ................................          541.75          535.48
----------------------------------------------------------------------------------------------------------------

Provisional Measures--AD

    Section 733(d) of the Act states that suspension of liquidation 
pursuant to an affirmative preliminary determination may not remain in 
effect for more than four months, except that Commerce may extend the 
four-month period to no more than six months at the request of 
exporters representing a significant proportion of exports of the 
subject merchandise. Commerce published its LTFV Preliminary 
Determination on October 21, 2020.\12\ On November 9, 2020, Commerce 
postponed the LTFV Final Determination and extended the provisional 
measures period from four months to six months.\13\ Commerce published 
the LTFV Final Determination in the Federal Register on March 12, 
2021.\14\ The six-month period beginning on the date of publication of 
the LTFV Preliminary Determination ended on April 18, 2021.
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    \12\ See LTFV Preliminary Determination.
    \13\ See Certain Vertical Shaft Engines Between 99cc and Up To 
225cc, and Parts Thereof, from the People's Republic of China: 
Postponement of Final Determination of Sales at Less Than Fair Value 
Investigation, 85 FR 71319 (November 9, 2020).
    \14\ See LTFV Final Determination.
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    Therefore, in accordance with section 733(d) of the Act, Commerce 
intends to instruct CBP to terminate the suspension of liquidation and 
to liquidate, without regard to antidumping duties, unliquidated 
entries of small vertical engines from China entered, or withdrawn from 
warehouse, for consumption after April 18, 2021, the date on which the 
provisional measures expired. Suspension of liquidation will resume on 
the date of publication of the ITC's final affirmative injury 
determinations in the Federal Register.

CVD Order

    On April 26, 2021, in accordance with section 705(d) of the Act, 
the ITC notified Commerce of its final determinations that an industry 
in the United States is materially injured within the meaning of 
section 705(b)(1)(A)(i) of the Act by reason of imports of small 
vertical engines from China.\15\ Therefore, Commerce is issuing this 
CVD order in accordance with sections 705(c)(2) and 706 of the Act.

[[Page 23677]]

Because the ITC determined that imports of small vertical engines from 
China are materially injuring a U.S. industry, unliquidated entries of 
such merchandise from China entered, or withdrawn from warehouse, for 
consumption are subject to the assessment of countervailing duties. In 
addition, the ITC found that critical circumstances exist with regard 
to imports from China subject to Commerce's affirmative critical 
circumstances findings within the meaning of section 705(b)(4)(A) of 
the Act. As a result of Commerce's affirmative critical circumstances 
determination under section 705(a)(2) of the Act, and the ITC's 
affirmative critical circumstances determination under section 
705(b)(4)(A) of the Act, retroactive duties will be applied to the 
relevant imports for a period of 90 days prior to the suspension of 
liquidation.\16\
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    \15\ See ITC Notification.
    \16\ See section 705(c)(4) of the Act; see also SAA at 876 (``If 
both agencies make affirmative {critical circumstances{time}  
determinations in their final investigations, retroactive duties 
will be applied for a period ninety days prior to suspension of 
liquidation.'')
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    Therefore, in accordance with section 706(a)(1) of the Act, 
Commerce will direct CBP to assess, upon further instruction by 
Commerce, countervailing duties on all relevant entries of small 
vertical engines from China. With respect to entries from Chongqing 
Zongshen General Power Machine Co.,\17\ countervailing duties will be 
assessed on unliquidated entries of small vertical engines from China 
which are entered, or withdrawn from warehouse, for consumption on or 
after May 26, 2020, which is 90 days prior to the date of publication 
of the CVD Preliminary Determination.\18\ With respect to entries from 
Chongqing Kohler \19\ and all other producers, countervailing duties 
will be assessed on unliquidated entries of small vertical engines from 
China which are entered, or withdrawn from warehouse, for consumption 
on or after August 24, 2020, the date of publication of the CVD 
Preliminary Determination.\20\ Countervailing duties will not be 
assessed on any entries occurring after the expiration of the 
provisional measures period and before publication of the ITC's final 
affirmative injury determinations, as further described below.
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    \17\ Chongqing Zongshen General Power Machine Co. is cross-owned 
with Chongqing Zongshen Power Machinery Co., Ltd.; Zong Shen 
Industrial Group; Chongqing Zongshen Automobile Air Intake System 
Manufacturing Co., Ltd.; Chongqing Zongshen High Speed Boat 
Development Co., Ltd.; Chongqing Zong Shen Electrical Appliance Co., 
Ltd.; and Chongqing Dajiang Power Equipment Co., Ltd.
    \18\ 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) (CVD Preliminary 
Determination); 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 Critical 
Circumstances, in Part, in the Countervailing Duty Investigation, 85 
FR 68851 (October 30, 2020) (CVD Preliminary Critical Circumstances 
Determination).
    \19\ Chongqing Kohler is cross-owned with Kohler (China) 
Investment Company.
    \20\ See CVD Preliminary Determination; and CVD Preliminary 
Critical Circumstances Determination.
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Suspension of Liquidation--CVD

    In accordance with section 706 of the Act, we will instruct CBP to 
reinstitute suspension of liquidation on all relevant entries of small 
vertical engines from China, effective on the date of publication of 
the ITC's final affirmative injury determinations in the Federal 
Register, and to assess, upon further instruction by Commerce, pursuant 
to section 706(a)(1) of the Act, countervailing duties for each entry 
of the subject merchandise in an amount based on the net 
countervailable subsidy rate for the subject merchandise. These 
instructions suspending liquidation will remain in effect until further 
notice. Commerce will also instruct CBP to require cash deposits equal 
to the amounts as indicated below. Accordingly, effective on the date 
of publication of the ITC's final affirmative injury determinations, 
CBP will require, at the same time as importers would normally deposit 
estimated duties on the subject merchandise, a cash deposit for each 
entry of subject merchandise equal to the subsidy rates listed 
below.\21\ The all-others rate applies to all producers or exporters 
not specifically listed below, as appropriate.
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    \21\ See section 706(a)(3) of the Act.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Chongqing Kohler Engines Ltd................................        2.84
Chongqing Zongshen General Power Machine Co.................       18.13
All Others..................................................       10.46
------------------------------------------------------------------------

Provisional Measures--CVD

    Section 703(d) of the Act states that suspension of liquidation 
instructions issued pursuant to an affirmative preliminary 
determination may not remain in effect for more than four months. 
Commerce published its CVD Preliminary Determination on August 24, 
2020. Therefore, the provisional measures period, beginning on the date 
of publication of the CVD Preliminary Determination, ended on December 
21, 2020.
    Therefore, in accordance with section 703(d) of the Act, Commerce 
instructed CBP to terminate the suspension of liquidation and to 
liquidate, without regard to countervailing duties, unliquidated 
entries of small vertical engines from China entered, or withdrawn from 
warehouse, for consumption after December 21, 2020, the date on which 
the provisional measures expired. Pursuant to section 707(b) of the 
Act, the collection of cash deposits at the rate listed above will 
begin on the date of publication of the ITC's final affirmative injury 
determination. Suspension of liquidation will also resume on the date 
of publication of the ITC's final affirmative injury determination.

Notifications to Interested Parties

    This notice constitutes the AD and CVD orders with respect to small 
vertical engines from China pursuant to sections 706(a) and 736(a) of 
the Act. Interested parties can find a list of orders currently in 
effect at http://enforcement.trade.gov/stats/iastats1.html.
    These orders are published in accordance with sections 706(a) and 
736(a) of the Act and 19 CFR 351.211(b).

    Dated: April 28, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Orders

    The merchandise covered by these orders 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

[[Page 23678]]

air pollution controls are not excluded from the scope of these 
proceedings. 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 these proceedings.
    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 these orders, 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 these orders. 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.
    Specifically excluded from the scope of these orders are 
``Commercial'' or ``Heavy Commercial'' engines under 40 CFR 1054.107 
and 40 CFR 1054.135 that have (1) a displacement of 160cc or 
greater, (2) a cast iron cylinder liner, (3) an automatic 
compression release, and (4) and a muffler with at least three 
chambers and volume greater than 400cc.
    The engines subject to these orders 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 these orders enter under HTSUS 8409.91.9990. The mounted engines 
that are subject to these orders enter under HTSUS 8433.11.0050, 
8433.11.0060, and 8424.30.9000. Engines subject to these orders 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 orders is 
dispositive.

Appendix II--Separate Rate Companies

------------------------------------------------------------------------
                Exporter                             Producer
------------------------------------------------------------------------
                                           Producers supplying the non-
  Non-individually-examined exporters    individually-examined exporters
        receiving separate rates             receiving separate rates
------------------------------------------------------------------------
Changzhou Kawasaki and Kwang Yang        Changzhou Kawasaki and Kwang
 Engine Co., Ltd.                         Yang Engine Co., Ltd.
Chongqing Chen Hui Electric Machinery    CHONGQING AM PRIDE POWER &
 Co., Ltd.                                MACHINERY CO., LTD.
Chongqing Chen Hui Electric Machinery    Chongqing Kohler Motors Co.,
 Co., Ltd.                                Ltd.
Chongqing HWASDAN Power Technology Co.,  Chongqing HWASDAN Power
 Ltd.                                     Technology Co., Ltd.
Chongqing Rato Technology Co., Ltd.....  Chongqing Rato Technology Co.,
                                          Ltd.
CHONGQING SENCI IMPORT&EXPORT TRADE      CHONGQING AM PRIDE POWER &
 CO., LTD.                                MACHINERY CO., LTD.
CHONGQING SENCI IMPORT&EXPORT TRADE      Chongqing Zongshen General
 CO., LTD.                                Power Machines Co., Ltd.
Jialing-Honda Motors Co., Ltd..........  Jialing-Honda Motors Co., Ltd.
Loncin Motor Co., Ltd..................  Loncin Motor Co., Ltd.
Wenling Qianjiang Imp. & Exp. Co., Ltd.  Chongqing Rato Technology Co.,
                                          Ltd.
Wenling Qianjiang Imp. & Exp. Co., Ltd.  QIANJIANG GROUP WENLING
                                          JENNFENG INDUSTRY INC.
Zhejiang Amerisun Technology Co., Ltd..  CHONGQING DINKING POWER
                                          MACHINERY CO., LTD.
Zhejiang Amerisun Technology Co., Ltd..  Chongqing Rato Technology Co.,
                                          Ltd.
Zhejiang Amerisun Technology Co., Ltd..  LONCIN MOTOR CO., LTD.
Zhejiang Amerisun Technology Co., Ltd..  Zhejiang Dobest Power Tools
                                          Co., Ltd.
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[FR Doc. 2021-09318 Filed 5-3-21; 8:45 am]
BILLING CODE 3510-DS-P