[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Notices]
[Pages 59059-59060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21127]


-----------------------------------------------------------------------

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: Affirmative 
Preliminary Determination of Circumvention of the Antidumping and 
Countervailing Duty Orders--Dual-Piston Engines; Rescission in Part

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that imports of dual-piston engines with a single, common 
combustion chamber, of the type designed by FNA Group, Inc. (FNA), 
produced in and exported from the People's Republic of China (China) 
constitute later-developed merchandise that circumvent the 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 China. Commerce also preliminarily determines 
that this affirmative circumvention finding should be applied on a 
country-wide basis.

DATES: Applicable September 29, 2022.

FOR FURTHER INFORMATION CONTACT: Paul Gill, 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) 482-5673.

SUPPLEMENTARY INFORMATION:

Background

    On May 4, 2021, Commerce published AD and CVD orders on small 
vertical engines from China.\1\ On April 25, 2022, in response to a 
request from Briggs & Stratton, LLC (the petitioner), Commerce 
initiated a circumvention inquiry to determine whether dual-piston 
engines with a single, common combustion chamber, of the type designed 
by FNA, involve a ``minor alteration'' to subject merchandise or are 
``later-developed merchandise,'' such that they should be considered 
subject to the AD and CVD orders on small vertical engines from 
China.\2\ The petitioner alleges that such merchandise, produced in, 
and exported from, China, and imported into the United States may 
circumvent the Orders. For a complete description of the events that 
followed the initiation of this inquiry, see the Preliminary Decision 
Memorandum.\3\
---------------------------------------------------------------------------

    \1\ 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 23675 (May 4, 
2021) (Orders).
    \2\ See Certain Vertical Shaft Engines Between 99cc and Up To 
225cc, and Parts Thereof, from the People's Republic of China: 
Initiation of Circumvention Inquiry of the Antidumping and 
Countervailing Duty Orders--Dual-Piston Engines, 87 FR 24280 (April 
25, 2022) (Initiation Notice); see also Petitioner's Letter, 
``Request for Anti-Circumvention Inquiry Pursuant to section 781(c) 
and/or 781(d) of the Tariff Act of 1930,'' dated March 4, 2022.
    \3\ See Memorandum, ``Certain Vertical Shaft Engines Between 
99cc and Up To 225cc from the People's Republic of China: 
Preliminary Decision Memorandum for Circumvention Inquiry--Dual-
Piston Engines,'' dated concurrently with, and hereby adopted by, 
this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Orders

    The products subject to the Orders are small vertical engines from 
China. For a complete description of the scope of the Orders, see the 
Preliminary Decision Memorandum.\4\
---------------------------------------------------------------------------

    \4\ Id. at 2-3.
---------------------------------------------------------------------------

Merchandise Subject to the Circumvention Inquiry

    The merchandise subject to this circumvention inquiry are dual-
piston engines with a single, common

[[Page 59060]]

combustion chamber, of the type designed by FNA, otherwise meeting the 
scope of the Orders. In the Initiation Notice, Commerce used the term 
``dual-piston engine'' to refer to the engines subject to this inquiry, 
such as FNA's dual-piston engine. More specifically, the dual-piston 
engines subject to this circumvention inquiry have a common combustion 
chamber shared by two cylinders working in unison.\5\ For a complete 
description of the inquiry merchandise, see the Preliminary Decision 
Memorandum.
---------------------------------------------------------------------------

    \5\ See Petitioner's Letter, ``Request for Anti-Circumvention 
Inquiry Pursuant to Section 781(c) and/or Section 781(d) of the 
Tariff Act of 1930,'' dated March 4, 2022, at 2-3.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this circumvention inquiry pursuant to 
section 781(d) of the Tariff Act of 1930, as amended (the Act), and 19 
CFR 351.226(k). For a complete description of the events that followed 
the initiation of this circumvention inquiry, see the Preliminary 
Decision Memorandum. A list of topics included in the Preliminary 
Decision Memorandum is included as the appendix 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.

Affirmative Preliminary Determination of Circumvention

    As detailed in the Preliminary Decision Memorandum, Commerce 
preliminarily determines that imports of dual-piston engines with a 
single, common combustion chamber, of the type designed by FNA, 
produced in and exported from China constitute later-developed 
merchandise that circumvent the Orders, pursuant to section 781(d) of 
the Act and 19 CFR 351.226(k). We also preliminarily determine that 
this affirmative circumvention finding should be applied on a country-
wide basis.

Partial Rescission

    Commerce initiated this inquiry pursuant to sections 781(c) and (d) 
of the Act.\6\ However, because we preliminarily determine that dual-
piston engines with a single, common combustion chamber, of the type 
designed by FNA, are later-developed merchandise that are circumventing 
the Orders, pursuant to section 781(d) of the Act, Commerce is not 
evaluating whether the inquiry merchandise was also ``altered in form 
or appearance in minor respects'' in an attempt to circumvent the 
Orders, pursuant to 19 CFR 351.226(j) and section 781(c) of the Act. 
Therefore, we are rescinding the prong of this circumvention inquiry 
pertaining to section 781(c) of the Act.
---------------------------------------------------------------------------

    \6\ See Initiation Notice, 87 FR at 24280-81.
---------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with 19 CFR 351.226(l)(2), we will direct U.S. 
Customs and Border Protection (CBP) to continue the suspension of 
liquidation of previously suspended entries and to suspend liquidation 
of all entries of dual-piston engines with a single, common combustion 
chamber, of the type designed by FNA, produced in and exported from 
China that are entered, or withdrawn from warehouse, for consumption on 
or after April 25, 2022 (i.e., the date of the publication of the 
Initiation Notice).\7\ Pursuant to 19 CFR 351.226(l)(2), we will also 
instruct CBP to require cash deposits of estimated ADs and CVDs equal 
to the cash deposit rates in effect for small vertical engines for each 
unliquidated entry of dual-piston engines with a single, common 
combustion chamber, of the type designed by FNA, produced in and 
exported from China that have been entered, or withdrawn from 
warehouse, for consumption on or after April 25, 2022.\8\ These 
suspension of liquidation instructions and cash deposit requirements 
will remain in effect until further notice.
---------------------------------------------------------------------------

    \7\ Id.
    \8\ See Orders.
---------------------------------------------------------------------------

Public Comments

    Interested parties are invited to comment on this preliminary 
determination of circumvention and may submit case briefs or other 
written comments within 30 days of the date of publication of this 
notice.\9\ Rebuttal briefs, limited to issues raised in case briefs, 
may be submitted no later than seven days after the deadline for case 
briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this circumvention inquiry 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.\11\ Case and rebuttal briefs should be filed 
electronically via ACCESS.\12\
---------------------------------------------------------------------------

    \9\ Commerce is exercising its discretion, under 19 CFR 
351.309(c)(1)(ii), to alter the time limit for filing of case 
briefs.
    \10\ Commerce is exercising its discretion, under 19 CFR 
351.309(d)(1), to alter the time limit for filing of rebuttal 
briefs.
    \11\ See 19 CFR 351.309(c)(2) and (d)(2).
    \12\ See 19 CFR 351.303.
---------------------------------------------------------------------------

    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 within 30 days after the date of publication 
of this notice. Requests should contain: (1) the party's name, address, 
and telephone number; (2) the number of participants; (3) whether any 
participant is a foreign national; and (4) a list of the issues to be 
discussed. Issues raised in the hearing will be limited to issues 
raised in the briefs. If a request for a hearing is made, parties will 
be notified of the date and time for the hearing at a later date.
    All submissions must be filed electronically and received 
successfully in its entirety via ACCESS by 5:00 p.m. Eastern Time on 
the date that they are due. Note that Commerce has temporarily modified 
certain of its requirements for serving documents containing business 
proprietary information, until further notice.\13\
---------------------------------------------------------------------------

    \13\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
---------------------------------------------------------------------------

Notification to Interested Parties

    This determination is published in accordance with section 781(d) 
of the Act and 19 CFR 351.226(f) and (k).

    Dated: September 22, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Statutory and Regulatory Framework
VI. Comments and Analysis
VII. Country-Wide Circumvention Finding
VIII. Partial Recission
IX. Recommendation

[FR Doc. 2022-21127 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-DS-P