[Federal Register Volume 88, Number 42 (Friday, March 3, 2023)]
[Notices]
[Pages 13434-13435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04439]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-129, C-570-130]


Certain Walk-Behind Lawn Mowers and Parts Thereof From the 
People's Republic of China: Notice of Intent To Rescind Circumvention 
Inquiry on the Antidumping and Countervailing Duty Orders

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

SUMMARY: The U.S. Department of Commerce (Commerce) notifies interested 
parties that it intends to rescind a circumvention inquiry to determine 
whether certain lawn mowers assembled or completed in the United States 
by attaching Chinese cutting deck shells (attached to at least one 
significant non-engine component) to internal combustion engines are 
circumventing the antidumping duty (AD) and countervailing duty (CVD) 
orders on certain walk-behind lawn mowers and parts thereof (lawn 
mowers) from the People's Republic of China (China). Interested parties 
are invited to comment on this intent to rescind.

DATES: Applicable March 3, 2023.

FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or Natasia Harrison, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-5760 or (202) 
482-1240, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On October 27, 2022, Commerce initiated a circumvention inquiry to 
determine whether certain lawn mowers assembled or completed in the 
United States by attaching Chinese cutting deck shells (attached to at 
least one significant non-engine component) to internal combustion 
engines are circumventing the AD and CVD orders on lawn mowers from 
China under section 781(a) of the Tariff Act of 1930, as amended (the 
Act).\1\ On December 12,

[[Page 13435]]

2022, in accordance with 19 CFR 351.226(f)(2), Ningbo Daye Garden 
Machinery Co., Ltd., Ningbo Lingyue Intelligent Equipment Co., Ltd., 
and Daye North America, Inc. (collectively, Daye) submitted comments 
and factual information in response to the Initiation Notice.\2\ On 
January 10, 2023, in accordance with 19 CFR 351.226(f)(2), MTD Products 
Inc. and its parent company, Stanley Black & Decker, Inc. 
(collectively, the petitioner), filed comments and factual information 
to rebut, clarify, or correct the comments and information submitted by 
Daye on December 12, 2022.\3\ The preliminary determination of this 
circumvention inquiry is currently due on March 27, 2023.\4\
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    \1\ See Certain Walk-Behind Lawn Mowers and Parts Thereof from 
the People's Republic of China: Initiation of a Circumvention 
Inquiry on the Antidumping and Countervailing Duty Orders, 87 FR 
65033 (October 27, 2022) (Initiation Notice), and accompanying 
Circumvention Initiation Memorandum; see also Certain Walk-Behind 
Lawn Mowers and Parts Thereof from the People's Republic of China 
and the Socialist Republic of Vietnam: Antidumping Duty Orders, 86 
FR 36703 (July 13, 2021); and Certain Walk-Behind Lawn Mowers and 
Parts Thereof from the People's Republic of China: Countervailing 
Duty Order and Amended Final Affirmative Countervailing Duty 
Determination, 86 FR 36702 (July 13, 2021) (collectively, Orders).
    \2\ See Daye's Letter, ``Daye's Comments and Submission of 
Factual Information in Response to the Department's Circumvention 
Inquiry Initiation'' dated December 12, 2022.
    \3\ See Petitioner's Letter, ``Comments and Factual Information 
Submitted by MTD Products, Inc and Stanley Black & Decker, Inc. to 
Rebut, Clarify, or Correct Daye's Submission of Factual 
Information,'' dated January 10, 2023. MTD Products, Inc. was the 
petitioner in the investigation. See Certain Walk-Behind Lawn Mowers 
and Parts Thereof from the People's Republic of China and the 
Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value 
Investigations, 85 FR 37417 n.1 (June 22, 2020).
    \4\ See 19 CFR 351.226(e)(1); and Initiation Notice, 87 FR at 
65035.
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    For a full discussion of the basis for our intent to rescind this 
circumvention inquiry, see the Memorandum of Intent to Rescind.\5\ A 
list of topics discussed in the Memorandum of Intent to Rescind is 
included as the appendix to this notice. The Memorandum of Intent to 
Rescind 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 Memorandum of Intent to Rescind can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \5\ See Memorandum, ``Certain Walk-Behind Lawn Mowers and Parts 
Thereof from the People's Republic of China: Memorandum of Intent to 
Rescind Circumvention Inquiry on the Antidumping and Countervailing 
Duty Orders,'' dated concurrently with, and hereby adopted by, this 
notice (Memorandum of Intent to Rescind).
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Scope of the Orders

    The products covered by these Orders are lawn mowers from China. A 
full description of the scope of the Orders is provided in the 
Memorandum of Intent to Rescind.

Merchandise Subject to the Circumvention Inquiry

    The merchandise subject to this circumvention inquiry are lawn 
mower sub-assemblies imported from China and comprised of a cutting 
deck shell attached to at least one other significant non-engine 
component, such as, but not limited to, a handle, wheels, grass catcher 
bag, or an electronic starter. These sub-assemblies are assembled or 
completed in the United States by attaching internal combustion engines 
to produce rotary walk-behind lawn mowers of the type that would be 
subject to the Orders.\6\ The cutting deck shell is the portion of the 
lawn mower--typically of aluminum or steel--that houses and protects a 
user from a rotating blade. Cutting deck shells are typically entered 
under Harmonized Tariff Schedule of the United States (HTSUS) 
subheading 8433.11 or 8433.90.
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    \6\ This inquiry does not include lawn mowers assembled or 
completed in the United States using small vertical engines from 
China that are covered by the scope of the antidumping and 
countervailing duty orders on certain vertical shaft engines between 
99cc and up to 225 cc, and parts thereof. See Initiation Notice, 87 
FR at 65034 n.11.
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Intent To Rescind Circumvention Inquiry

    As explained above, this circumvention inquiry covers cutting deck 
shells attached to at least one other significant non-engine component, 
such as, but not limited to, a handle, wheels, grass catcher bag, or an 
electronic starter. We find that the inquiry merchandise is excluded 
from the scope of the orders because it is not imported as ``at a 
minimum, a sub-assembly comprised of an engine and a cutting deck shell 
attached to one another.'' We also find that it is not appropriate to 
conduct a circumvention inquiry on such excluded merchandise. 
Therefore, Commerce intends to rescind this circumvention inquiry, in 
accordance with 19 CFR 351.226(f)(6). For more explanation, see the 
Memorandum of Intent to Rescind.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce notified U.S. Customs 
and Border Protection (CBP) of the initiation of this circumvention 
inquiry and directed CBP to continue the suspension of liquidation of 
entries of products subject to the circumvention inquiry that were 
already subject to the suspension of liquidation under the Orders and 
to apply the cash deposit rate that would be applicable if the products 
were determined to be covered by the scope of the Orders.\7\ If 
Commerce rescinds this circumvention inquiry pursuant to 19 CFR 
351.226(f)(6), Commerce will inform CBP accordingly and instruct CBP to 
continue to suspend entries of lawn mowers from China that are subject 
to the Orders at the applicable rate(s) in effect on the date of entry 
until specific liquidation instructions are issued.
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    \7\ See CBP Message No. 2305407, dated November 1, 2022.
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Public Comment

    Interested parties are invited to comment on this notice of intent 
to rescind this circumvention inquiry. Interested parties may submit 
comments no later than 14 days after the date of publication of this 
notice and rebuttal comments, limited to issues raised in the comments, 
no later than seven days after the time limit for filing comments. 
Parties who submit comments or rebuttal comments 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.\8\
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    \8\ See generally 19 CFR 351.309(c)(2) and (d)(2) for guidance.
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    Commerce will issue a final decision in this circumvention inquiry, 
in which we will address comments submitted by parties.

    Dated: February 27, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Circumvention Initiation Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Intent to Rescind the Circumvention Inquiry
VI. Recommendation

[FR Doc. 2023-04439 Filed 3-2-23; 8:45 am]
BILLING CODE 3510-DS-P