[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.
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Estimated Cash deposit
weighted- rate (adjusted
Exporter Producer average for subsidy
dumping margin offsets)
(percent) (percent)
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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
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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.
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Subsidy
Company rate
(percent)
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Chongqing Kohler Engines Ltd................................ 2.84
Chongqing Zongshen General Power Machine Co................. 18.13
All Others.................................................. 10.46
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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
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Exporter Producer
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Producers supplying the non-
Non-individually-examined exporters individually-examined exporters
receiving separate rates receiving separate rates
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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