[Federal Register Volume 86, Number 173 (Friday, September 10, 2021)]
[Notices]
[Pages 50696-50698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19627]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-142]


Certain Walk-Behind Snow Throwers 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 snow throwers and parts thereof (snow 
throwers) from the People's Republic of China (China). The period of 
investigation (POI) is January 1, 2020, through December 31, 2020.

DATES: Applicable September 10, 2021.

FOR FURTHER INFORMATION CONTACT: Alex Cipolla or Joy Zhang, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4956 or (202) 482-1168, 
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 April 26, 
2021.\1\ On June 8, 2021, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
August 27, 2021.\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 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 https://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Certain Walk-Behind Snow Throwers and Parts Thereof from 
the People's Republic of China: Initiation of Countervailing Duty 
Investigation, 86 FR 22022 (April 26, 2021) (Initiation Notice).
    \2\ See Certain Walk-Behind Snow Throwers and Parts Thereof from 
the People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 86 FR 30405 
(June 8, 2021).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Walk-Behind Snow Throwers 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 snow throwers from 
China. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations, the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\4\ MTD Products Inc 
(the petitioner) commented on the scope of the investigation, 
requesting the addition of exclusion language to the scope as it 
appeared in the Initiation Notice.\5\ Commerce is preliminarily 
modifying the scope language as it appeared in the Initiation Notice to 
include the requested language. See the revised scope in Appendix I to 
this notice and accompanying Preliminary Decision Memorandum for 
further discussion.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Petitioner's Letter, ``Antidumping and Countervailing 
Duty Investigations of Certain Walk-Behind Snow Throwers from the 
People's Republic of China: Scope Comments,'' dated May 10, 2021.
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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

[[Page 50697]]

gives rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; see also section 771(5)(E) of the Act 
regarding benefit; and section 771(5A) of the Act regarding 
specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ 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 snow throwers 
from China based on a request made by the petitioner.\8\ 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 January 10, 2022, unless postponed.
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    \8\ See Petitioner's Letter, ``Countervailing Duty Investigation 
of Certain Walk-Behind Snow Throwers and Parts Thereof from the 
People's Republic of China: Request to Align Final Countervailing 
Duty Determination with Final Antidumping Duty Determination,'' 
dated August 6, 2021.
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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 an individual estimated 
countervailable subsidy rate for Zhejiang Zhouli Industrial Co., Ltd. 
(Zhejiang Zhouli), the only individually examined exporter/producer, 
that was not zero, de minimis, or based entirely under section 776 of 
the Act. As a result, the estimated weighted-average rate calculated 
for Zhejiang Zhouli is the rate assigned to all other producers and 
exporters, pursuant to section 705(c)(5)(A)(i) of the Act.

Rate for Non-Responsive Companies

    Eight potential producers and/or exporters of snow throwers from 
China received but did not respond to, or refused delivery of, 
Commerce's Quantity and Value (Q&V) Questionnaire or Commerce's Initial 
Countervailing Duty Questionnaire. We find that, by not responding to 
the Q&V Questionnaire or Initial Questionnaire, these companies 
withheld requested information and significantly impeded this 
proceeding.\9\ Thus, in reaching our preliminary determination, 
pursuant to sections 776(a)(2)(A) and (C) of the Act, we are basing the 
CVD rate for these eight companies on facts otherwise available.
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    \9\ These companies are Changzhou Globe Tools Co., Ltd., Ningbo 
Joyo Garden Tools Co., Ltd., Nanjing Chervon Industry Co., Ltd., 
Ningbo Daye Garden Machinery Co., Ltd., Ningbo Scojet Import & 
Export Trading Co., Ltd., TIYA International Co., Ltd., Weima 
Agricultural Machinery Co., Ltd., and Zhejiang Yat Electrical 
Appliance Co.
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    We further preliminarily determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. By failing to submit 
responses to Commerce's Q&V or initial questionnaire, the eight 
companies did not cooperate to the best of their ability in this 
investigation.
    Accordingly, we preliminarily find that an adverse inference is 
warranted to ensure that the eight companies will not obtain a more 
favorable result than had they fully complied with our request for 
information. For more information on the application of adverse facts 
available to the non-responsive companies, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Determination 
Memorandum.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Zhejiang Zhouli Industrial Co...........................           12.86
All-Others..............................................           12.86
Changzhou Globe Tools Co., Ltd. Co., Ltd................          130.44
Nanjing Chevron Industry Co., Ltd.......................          130.44
Ningbo Daye Garden Machinery Co., Ltd...................          130.44
Ningbo Joyo Garden Tools Co., Ltd.......................          130.44
Ningbo Scojet Import & Export Trading...................          130.44
TIYA International Co., Ltd.............................          130.44
Weima Agricultural Machinery Co., Ltd...................          130.44
Zhejiang Yat Electrical Appliance Co....................          130.44
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Suspension of Liquidation

    In accordance with sections 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 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 its calculations and analysis 
performed to interested parties 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

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of case briefs and 
written comments at a later date. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than seven days after 
the deadline date for case briefs.\10\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary

[[Page 50698]]

information, until further notice.\11\ The deadlines for submitting 
case and rebuttal briefs on scope issues will be established as part of 
the preliminary determination in the companion AD investigation. 
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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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \11\ See 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) (collectively, 
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, and a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, Commerce intends to hold 
the hearing at a time and date to be determined.\12\ Parties should 
confirm by telephone the date and time of the hearing two days before 
the scheduled date.
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    \12\ See 19 CFR 351.310(d).
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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 whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry.

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: August 27, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of gas-
powered, walk-behind snow throwers (also known as snow blowers), 
which are snow moving machines that are powered by internal 
combustion engines and primarily pedestrian-controlled. The scope of 
the investigation covers certain snow throwers (also known as snow 
blowers), 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 snow throwing. Subject merchandise also 
includes finished and unfinished snow throwers that are further 
processed in a third country or in the United States, including, but 
not limited to, assembly or any other processing that would not 
otherwise remove the merchandise from the scope of this 
investigation if performed in the country of manufacture of the in-
scope snow throwers.
    Walk-behind snow throwers subject to the scope of this 
investigation are powered by internal combustion engines which are 
typically spark ignition, single or multiple cylinder, and air-
cooled with power take off shafts.
    For the purposes of this investigation, an unfinished and/or 
unassembled snow thrower means at a minimum, a subassembly comprised 
of an engine, auger housing (i.e., intake frame), and an auger (or 
``auger paddle'') packaged or imported together. An intake frame is 
the portion of the snow thrower--typically of aluminum or steel that 
houses and protects an operator from a rotating auger and is the 
intake point for the snow. Importation of the subassembly whether or 
not accompanied by, or attached to, additional components including, 
but not limited to, handle(s), impeller(s), chute(s), track 
tread(s), or wheel(s) constitutes an unfinished snow thrower for 
purposes of this investigation. The inclusion in a third country of 
any components other than the snow thrower sub-assembly does not 
remove the snow thrower from the scope. A snow thrower is within the 
scope of this investigation regardless of the origin of its engine.
    Specifically excluded is merchandise covered by the scope of the 
antidumping and countervailing duty orders on certain vertical shaft 
engines between 225cc and 999cc, and parts thereof from the People's 
Republic of China. See Certain Vertical Shaft Engines Between 225cc 
and 999cc, and Parts Thereof, from the People's Republic of China: 
Amended Final Antidumping Duty Determination and Antidumping Duty 
Order, 86 FR 12623 (March 4, 2021) and Certain Vertical Shaft 
Engines Between 225cc and 999cc, and Parts Thereof from the People's 
Republic of China: Countervailing Duty Order and Amended Final 
Affirmative Countervailing Duty Determination, 86 FR 12619 (March 4, 
2021).
    Also specifically excluded is merchandise covered by the scope 
of the antidumping and countervailing duty orders on certain 
vertical shaft engines between 99cc and Up to 225cc, and Parts 
Thereof From the People's Republic of China. See 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, 86 FR 023675 (May 4, 2021).
    The snow throwers subject to this investigation are typically 
entered under Harmonized Tariff Schedule of the United States 
(HTSUS) subheading 8430.20.0060. Certain parts of snow throwers 
subject to this investigation may also enter under HTSUS 
8431.49.9095. 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 Comments
IV. Scope of the Investigation
V. Injury Test
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation

[FR Doc. 2021-19627 Filed 9-9-21; 8:45 am]
BILLING CODE 3510-DS-P