[Federal Register Volume 87, Number 111 (Thursday, June 9, 2022)]
[Notices]
[Pages 35163-35164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12425]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-119]


Preliminary Results of Changed Circumstances Review: Antidumping 
Duty Order on Certain Vertical Shaft Engines Between 225cc and 999cc, 
and Parts Thereof From the People's Republic of China

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Honda Power Products (China) Co., Ltd. (Honda) is the successor-
in-interest to Jialing-Honda Motors Co., Ltd. (Jialing) and, 
accordingly, that subject merchandise produced and exported by Honda 
should be assigned the cash deposit rate established for subject 
merchandise produced and exported by Jialing for purposes of the 
antidumping duty (AD) order on certain vertical shaft engines between 
225cc and 999cc, and parts thereof (vertical shaft engines) from the 
People's Republic of China (China).

DATES: Applicable June 9, 2022.

FOR FURTHER INFORMATION CONTACT: Leo Ayala AD/CVD Operations, Office 
VII, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-3945, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 22, 2022, Commerce published the initiation of a 
changed circumstances review (CCR) of the AD order \1\ on vertical 
shaft engines from China.\2\ Commerce declined to combine the 
Initiation Notice with the preliminary results of the CCR,\3\ citing 
the need to issue an additional supplemental questionnaire to Honda 
regarding Honda's customer base and supplier relationships. On February 
15, 2022, we issued a supplemental questionnaire to Honda requesting 
this information.\4\ On March 8, 2022, Honda timely responded to this 
supplemental questionnaire.\5\ No other interested party submitted 
comments or factual information regarding Honda's request.
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    \1\ 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) (Amended Final Determination and Order); see 
also Certain Large Vertical Shaft Engines Between 225cc and 999cc, 
and Parts Thereof, from the People's Republic of China: Notice of 
Correction to the Amended Final Antidumping Duty Determination and 
Antidumping Duty Order, 86 FR 13694 (March 10, 2021).
    \2\ See Initiation of Antidumping Duty Changed Circumstances 
Review: Certain Vertical Shaft Engines Between 225cc and 999cc, and 
Parts Thereof from the People's Republic of China, 86 FR 9573 
(February 22, 2022) (Initiation Notice).
    \3\ See 19 CFR 351.221(c)(3)(ii).
    \4\ See Commerce's Letter, ``Certain Vertical Shaft Engines 
Between 225cc and 999cc, and Parts Thereof from the People's 
Republic of China: Changed Circumstances Review; Second Supplemental 
Questionnaire,'' dated February 15, 2022.
    \5\ See Honda's Letter, ``Certain Vertical Shaft Engines Between 
225cc and 999cc, and Parts Thereof from the People's Republic of 
China: Changed Circumstances Review; Second Supplemental 
Questionnaire,'' dated March 8, 2022.
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Scope of the Order

    The products covered by the Order are large vertical shaft engines 
from China. For a complete description of the scope of the Order, see 
the Preliminary Decision Memorandum.\6\
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    \6\ See Memorandum, ``Certain Vertical Shaft Engines Between 
225cc and 999cc, and Parts Thereof from the People's Republic of 
China: Preliminary Results of the Changed Circumstances Review; 
Preliminary Decision Memorandum,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Legal Framework

    In determining whether one company is the successor-in-interest to 
another company as part of an AD proceeding, Commerce examines several 
factors including, but not limited to: (1) management and ownership; 
(2) production facilities; (3) supplier relationships; and (4) customer 
base.\7\ Although no single, or even several, of these factors will 
necessarily provide a dispositive indication of succession, generally, 
Commerce will consider a company to be the successor-in-interest if its 
resulting operation is not materially dissimilar to that of its

[[Page 35164]]

predecessor.\8\ Thus, if the ``totality of circumstances'' demonstrate 
that, with respect to the production and sale of the subject 
merchandise, the new company operates as essentially the same business 
entity as the prior company, Commerce will assign the successor-in-
interest the cash deposit rate of its predecessor.\9\
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    \7\ See, e.g., Ball Bearings and Parts Thereof from France: 
Final Results of Changed-Circumstances Review, 75 FR 34688 (June 18, 
2010), and accompanying Issues and Decision Memorandum (IDM) at 
Comment 1.
    \8\ See, e.g., Fresh and Chilled Atlantic Salmon from Norway; 
Final Results of Changed Circumstances Antidumping Duty 
Administrative Review, 64 FR 9979, 9980 (March 1, 1999).
    \9\ See, e.g., id.; and Brass Sheet and Strip from Canada: Final 
Results of Administrative Review, 57 FR 20461 (May 13, 1992), and 
accompanying IDM at Comment 1.
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Preliminary Results of Review

    We preliminarily determine that Honda is the successor-in-interest 
to Jialing for purposes of the Order. Record evidence submitted by 
Honda indicates that, based on the totality of the circumstances under 
Commerce's successor-in-interest criteria, Honda operates as materially 
the same business entity as Jialing with respect to the production and 
sale of subject merchandise. In particular, we preliminarily find that 
Honda's management and ownership, production facilities, supplier 
relationships, and customer base with regard to the subject merchandise 
are substantially the same as Jialing's before the name change. For the 
complete successor-in-interest analysis, see the Preliminary Decision 
Memorandum.
    Therefore, based on record evidence, we preliminarily determine 
that Honda is the successor-in-interest to Jialing and the cash deposit 
rate assigned to Jialing should be the rate for Honda as a result of 
our successor-in-interest finding. Should our final results of review 
remain the same as these preliminary results of review, Honda will be 
assigned the cash deposit rate currently assigned to Jialing with 
respect to the subject merchandise (i.e., 261.93 percent).\10\ We will 
thus instruct U.S. Customs and Border Protection to suspend liquidation 
of entries of vertical shaft engines from China produced and exported 
by Honda, effective on the publication date of the final results, at 
the cash deposit rate for estimated antidumping duties assigned to 
Jialing.
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    \10\ 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).
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Public Comment

    In accordance with 19 CFR 351.309(c)(1)(ii), interested parties may 
submit case briefs not later than 30 days after the date of publication 
of this notice. Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed no later than seven days after the due date for 
case briefs, in accordance with 19 CFR 351.309(d).\11\ Parties who 
submit case or rebuttal briefs 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.\12\
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    \11\ Commerce is exercising its discretion under 19 CFR 
351.309(d)(1) to alter the time limit for the filing of rebuttal 
briefs.
    \12\ See 19 CFR 351.30(c)(2) and (d)(2).
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    All comments are to be filed electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS) and must be served on interested parties.\13\ 
Note that Commerce has temporarily modified certain of its requirements 
for serving documents containing business proprietary information, 
until further notice.\14\ An electronically filed document must be 
received successfully in its entirety by ACCESS by 5:00 p.m. Eastern 
Time on the day on which it is due.
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    \13\ See generally 19 CFR 351.303.
    \14\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 30 days of publication of this notice in the Federal 
Register. Hearing requests should contain the following information: 
(1) The party's name, address, and telephone number; (2) the number of 
participants; and (3) 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. Parties should confirm 
the date and the time of the hearing two days before the scheduled 
date.

Final Results of Review

    Consistent with 19 CFR 351.216(e), we intend to issue the final 
results of this CCR no later than 270 days after the date on which this 
review was initiated, or within 45 days if all parties agree to the 
outcome of the review.

Notification to Interested Parties

    This notice is published in accordance with sections 751(b)(1) and 
777(i)(1) of the Act and 19 CFR 351.221(b)(4).

    Dated: June 2, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2022-12425 Filed 6-8-22; 8:45 am]
BILLING CODE 3510-DS-P