[Federal Register Volume 87, Number 60 (Tuesday, March 29, 2022)]
[Notices]
[Pages 17987-17989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06558]


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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: Final Affirmative Countervailing Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) 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 is January 1, 2020, through December 31, 2020.

DATES: Applicable March 29, 2022.

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

    On September 10, 2021, Commerce published the Preliminary 
Determination in the Federal Register.\1\ A summary of the events that 
occurred since Commerce published the Preliminary Determination may be 
found in the Issues and Decision Memorandum.\2\ The Issues and 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. A list of topics 
discussed in the Issues and Decision Memorandum is included at Appendix 
II. In addition, a complete version of the Issues and Decision 
Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See 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, 86 FR 50696 
(September 10, 2021) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Certain Walk-Behind Snow Throwers and 
Parts Thereof from the People's Republic of China: Final Affirmative 
Countervailing Duty Determination,'' dated concurrently with, and 
hereby adopted by, this notice (Issues and 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

    There have been no scope comments since the Preliminary 
Determination. As a result, Commerce has made no changes to the scope 
of this investigation since the Preliminary Determination.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties, and to which we responded in the Issue and Decision 
Memorandum, is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce 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.\3\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \3\ 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 this final determination, Commerce is relying on facts 
otherwise available, including adverse facts available (AFA), pursuant 
to sections 776(a) and (b) of the Act. For a full discussion of our 
application of AFA, see the Preliminary Determination and the section 
``Use of Facts Otherwise Available and Adverse Inferences'' in the 
accompanying Issues and Decision Memorandum.\4\
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    \4\ See Preliminary Decision Memorandum at ``Use of Facts 
Otherwise Available and Adverse Inferences;'' see also Issues and 
Decision Memorandum at ``Use of Facts Otherwise Available and 
Adverse Inferences.''
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Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\5\
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    \5\ See Commerce's Letter, ``Certain Walk-Behind Snow Throwers 
and Parts Thereof from the People's Republic of China: Zhejiang 
Zhouli Industrial Co. Ltd.: In Lieu of Verification Questionnaire,'' 
dated October 11, 2021.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, as well as additional information collected subsequent to the 
Preliminary Determination, we made certain changes to Zhejiang Zhouli 
Industrial Co., Ltd. (Zhejiang Zhouli)'s subsidy rate calculations, the 
rate for non-cooperating respondents, and the all-others rate. For a 
discussion of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(5)(A) of the Act, 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.
    Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual 
estimated countervailable subsidy rates established for all exporters 
and producers individually examined are zero, de minimis or determined 
based entirely on facts otherwise available, Commerce may use ``any 
reasonable method'' to establish the estimated subsidy rate for all 
other producers or exporters. All three companies selected

[[Page 17988]]

as mandatory respondents \6\ in this investigation are receiving 
individual estimated subsidy rates based entirely on facts available 
under section 776 of the Act. Consequently, pursuant to section 
705(c)(5)(A)(ii) of the Act, we established the all-others rate by 
applying the countervailable subsidy rate assigned to the three 
mandatory respondents.
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    \6\ The mandatory respondents in this investigation are TIYA 
International (TIYA), Ningbo Scojet Import & Export Co., Ltd. 
(Ningbo Scojet), and Zhejiang Zhouli. Commerce originally selected 
TIYA as a mandatory respondent. On May 28, 2021, TIYA notified 
Commerce that it did not intend to participate as a mandatory 
respondent. Commerce then selected Ningbo Scojet as a mandatory 
respondent. However, Ningbo Scojet did not respond to our initial 
questionnaire.
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Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \7\ See Preliminary Decision Memorandum at section ``Application 
of AFA: Non-Responsive Companies.''
    \8\ Id.; see also Issues and Decision Memorandum at Comment 6.
    \9\ See Preliminary Decision Memorandum at section ``Application 
of AFA: Non-Responsive Companies.''
    \10\ Id.
    \11\ Id.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                                rate
                                                               (percent)
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Zhejiang Zhouli Industrial Co................................     203.06
All Others...................................................     203.06
Changzhou Globe Tools Co., Ltd \7\...........................     203.06
Nanjing Chervon Industry Co., Ltd \8\........................     203.06
Ningbo Daye Garden Machinery Co., Ltd \9\....................     203.06
Ningbo Joyo Garden Tools Co., Ltd \10\.......................     203.06
Ningbo Scojet Import & Export Trading \11\...................     203.06
TIYA International Co., Ltd..................................     203.06
Weima Agricultural Machinery Co., Ltd........................     203.06
Zhejiang Yat Electrical Appliance Co.........................     203.06
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Disclosure

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

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from China that were entered, or withdrawn from 
warehouse, for consumption, effective September 10, 2021, which is the 
date of publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, effective 
January 9, 2022, we instructed CBP to discontinue the suspension of 
liquidation of all entries on or after January 9, 2022, but to continue 
the suspension of liquidation of all entries between September 10, 
2021, and January 8, 2022.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, and 
continue to require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above, 
in accordance with section 706(a) of the Act. If the ITC determines 
that material injury, or threat of material injury, does not exist, 
this proceeding will be terminated, and all estimated duties deposited 
or securities posted as a result of the suspension of liquidation will 
be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of snow 
throwers from China. Because the final determination in this proceeding 
is affirmative, in accordance with section 705(b) of the Act, the ITC 
will make its final determination as to whether the domestic industry 
in the United States is materially injured, or threatened with material 
injury, by reason of imports of snow throwers from China no later than 
45 days after our final determination. In addition, we are making 
available to the ITC all non-privileged and nonproprietary information 
related to this investigation. If the ITC determines that material 
injury or threat of material injury does not exist, this proceeding 
will be terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, Commerce will issue a 
countervailing duty order directing CBP to assess, upon further 
instruction by Commerce, countervailing duties on all imports of the 
subject merchandise that are entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section. We will allow the ITC access to all privileged 
and business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: March 21, 2022.
Lisa W. Wang,
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

[[Page 17989]]

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 Final Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Comments
    Comment 1: Whether Commerce Should Accept Zhejiang Zhouli's 
Response
    Comment 2: Export Buyer's Credit Program
    Comment 3: Whether Commerce Should Continue To Apply Adverse 
Facts Available to the Provision of Electricity for Less Than 
Adequate Remuneration
    Comment 4: Countervailability of Other Subsidies
    Comment 5: Currency Undervaluation
    Comment 6: Nanjing Chervon Industry Co., Ltd.'s Request
VI. Recommendation
Appendix: AFA Rate Calculation

[FR Doc. 2022-06558 Filed 3-28-22; 8:45 am]
BILLING CODE 3510-DS-P