[Federal Register Volume 88, Number 148 (Thursday, August 3, 2023)]
[Notices]
[Pages 51279-51282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16594]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-148]


Gas Powered Pressure Washers From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less-Than-Fair-Value, 
Preliminary Affirmative Critical Circumstances Determination, in Part, 
Postponement of Final Determination, and Extension of Provisional 
Measures

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that gas powered pressure washers (pressure washers) from 
the People's Republic of China (China) are being, or are likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is April 1, 2022, through September 30, 2022. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable August 3, 2023.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla and Dusten Hom, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3477, and (202) 482-
5075, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on January 25, 
2023.\1\ On May 18, 2023, Commerce postponed the preliminary 
determination of this investigation to July 28, 2023.\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 included 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.
---------------------------------------------------------------------------

    \1\ See Gas Powered Pressure Washers from the People's Republic 
of China and the Socialist Republic of Vietnam: Initiation of Less-
Than-Fair-Value Investigations, 88 FR 4807 (January 25, 2023) 
(Initiation Notice).
    \2\ See Gas Powered Pressure Washers from the People's Republic 
of China: Postponement of Preliminary Determination in the Less-
Than-Fair Value Investigation, 88 FR 31677 (May 18, 2023).
    \3\ See Memorandum, ``Decision Memorandum for Preliminary 
Determination of Sales in the Less-Than-Fair-Value Investigation of 
Gas Powered Pressure Washers from the People's Republic of China,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are pressure washers 
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,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ We received 
comments from several parties concerning the scope of the antidumping 
duty (AD) and countervailing duty (CVD) investigations of pressure 
washers as it appeared in the Initiation Notice.\6\ On

[[Page 51280]]

June 8, 2023, we issued the preliminary scope decision memorandum.\7\ 
For a summary of the product coverage comments and rebuttal responses 
submitted to the record for this investigation, and accompanying 
discussion and analysis of all comments timely received, see the 
Preliminary Scope Decision Memorandum.\8\ As discussed in the 
Preliminary Scope Decision Memorandum, Commerce did not modify the 
scope language as it appeared in the Initiation Notice.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice, 88 FR at 4812.
    \6\ See Preliminary Decision Memorandum at ``IV. Scope 
Comments.''
    \7\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated June 8, 2023.
    \8\ Id.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value in accordance with section 773(c) 
of the Act.
    In addition, pursuant to sections 776(a) and (b) of the Act because 
the China-wide entity did not cooperate to the best of its ability in 
responding to Commerce's request for data, Commerce preliminarily has 
relied upon facts otherwise available, with adverse inferences, for the 
China-wide entity. For a full description of the methodology underlying 
Commerce's preliminary determination, see the Preliminary Decision 
Memorandum.

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 733(e)(1) of the Act and 19 CFR 
351.206(c), Commerce preliminarily determines that critical 
circumstances exist with respect to imports of pressure washers from 
China for Jiangsu Jianghuai Engine Co., Ltd. (JD Power) and the China-
wide entity, but do not exist with respect to the non-selected 
companies receiving a separate rate. For a full description of the 
methodology and results of Commerce's analysis, see the Preliminary 
Decision Memorandum.

Combination Rates

    In the Initiation Notice,\9\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Commerce's 
Policy Bulletin 05.1 describes this practice.\10\
---------------------------------------------------------------------------

    \9\ See Initiation Notice, 88 FR at 4811.
    \10\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
---------------------------------------------------------------------------

Separate Rates

    In addition to JD Power, we have preliminarily granted certain non-
individually examined respondents a separate rate. Also, because Rato 
requested a separate rate but did not respond to Commerce's 
questionnaire as a mandatory respondent in this investigation, we have 
preliminarily denied a separate rate to Rato and are treating it as 
part of the China-wide entity.\11\ See the Preliminary Decision 
Memorandum for details.
---------------------------------------------------------------------------

    \11\ See Rato's Letter, ``Notice of Intent Not to Participate,'' 
dated April 17, 2023 (Rato Declination Letter).
---------------------------------------------------------------------------

    In calculating the rate for non-individually examined separate rate 
respondents in a non-market economy AD investigation, Commerce normally 
looks to section 735(c)(5)(A) of the Act, which pertains to the 
calculation of the all-others rate in a market economy AD 
investigation, for guidance. Pursuant to section 735(c)(5)(A) of the 
Act, normally this rate shall be an amount equal to the weighted 
average of the estimated AD rate established for those companies 
individually examined, excluding zero and de minimis and any rates 
based entirely under section 776 of the Act. Commerce calculated an 
individual estimated weighted-average dumping margin for JD Power that 
is not zero, de minimis, or based entirely on facts otherwise 
available. Thus, the weighted-average dumping margin calculated for JD 
Power is the basis to determine the weighted-average dumping margin for 
the non-examined, separate rate companies, using section 735(c)(5)(A) 
of the Act for guidance, which provides for the determination of the 
estimated weighted-average dumping for all other producers and 
exporters in a market economy investigation. See the below table in the 
``Preliminary Determination of the Investigation'' section of this 
notice.

Preliminary Determination of the Investigation

    Commerce preliminarily determines that the following weighted-
average dumping margins exist:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Cash  deposit
                                                                                     Estimated         rate
                                                                                     weighted-    (adjusted  for
                   Exporter                                 Producer                  average         export
                                                                                      dumping         subsidy
                                                                                      margin         offset(s)
                                                                                     (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
Jiangsu Jianghuai Engine Co., Ltd.............  Jiangsu Jianghuai Engine Co.,             263.25          252.71
                                                 Ltd.
Sumec Hardware and Tools Co., Ltd.............  Sumec Hardware and Tools Co.,             263.25          252.71
                                                 Ltd.
Zhejiang Danau Machine Co., Ltd...............  Zhejiang Danau Machine Co., Ltd.          263.25          252.71
China-Wide Entity.............................  274.37..........................          263.83
----------------------------------------------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
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, 
as discussed below. Further, pursuant to section 733(d)(1)(B) of the 
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash 
deposit equal to the weighted average amount by which normal value 
exceeds U.S. price, as indicated in the chart above, as follows: (1) 
for the producer/exporter combinations listed in the table above, the 
cash deposit rate is equal to the estimated weighted-average dumping 
margin listed for that combination in the table; (2) for all 
combinations of Chinese producers/exporters of subject merchandise that 
have not established eligibility for their own separate rates, the cash 
deposit rate

[[Page 51281]]

will be equal to the estimated weighted-average dumping margin 
established for the China-wide entity; and (3) for all third-county 
exporters of subject merchandise not listed in the table above, the 
cash deposit rate is the cash deposit rate applicable to the Chinese 
producer/exporter combination (or China-wide entity) that supplied that 
third-country exporter.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise from JD Power and from the China-wide entity. In accordance 
with section 733(e)(2)(A) of the Act, the suspension of liquidation 
shall apply to all unliquidated entries of merchandise from JD Power 
and the China-wide entity that were entered, or withdrawn from 
warehouse, for consumption on or after the date which is 90 days before 
the publication of this notice in the Federal Register.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
where Commerce has made a preliminary affirmative determination for 
domestic subsidy pass-through or export subsidies, Commerce offset the 
calculated estimated weighted-average dumping margin by the appropriate 
rate(s). Any such adjusted rates may be found in the Preliminary 
Determination section's chart of estimated weighted-average dumping 
margins above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for the 
passed-through domestic subsidies or for export subsidies at the time 
the CVD provisional measures expire. These suspension of liquidation 
instructions will remain in effect until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination within five 
days of its public announcement or, if there is no public announcement, 
within five days of the date of publication 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 information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the verification report is issued in this 
investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than seven days after the deadline 
date for case briefs.\12\ Note that Commerce has modified certain of 
its requirements for serving documents containing business proprietary 
information until further notice.\13\ 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.
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \13\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
---------------------------------------------------------------------------

    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, whether any participant is a foreign national, and a list 
of the issues to be discussed. 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 time of the hearing two 
days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On July 10, 2023, pursuant to 19 CFR 351.210(e), JD Power timely 
requested that Commerce postpone the final determination and that 
provisional measures be extended to a period not to exceed six months, 
if the preliminary determination was affirmative.\14\ On July 10, 2023, 
the petitioner timely requested that Commerce fully extend the deadline 
for the final determination in the event of a negative preliminary 
determination.\15\ In accordance with section 735(a)(2)(A) of the Act 
and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary 
determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination, pursuant to 
section 735(a)(2) of the Act. Furthermore, as the final CVD 
determination has been aligned with the final AD determination, 
Commerce will make its final CVD determination no later than 135 days 
after the date of publication of this preliminary determination.\16\
---------------------------------------------------------------------------

    \14\ See JD Power's Letter, ``Request to Postpone Final 
Determination,'' dated July 10, 2023.
    \15\ See Petitioner's Letter, ``Request to Postpone Final 
Determination,'' dated July 10, 2023.
    \16\ See Gas Powered Pressure Washers from the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination, 
Preliminary Affirmative Critical Circumstances Determination, in 
Part, and Alignment of Final Determination with Final Antidumping 
Duty Determination, 88 FR 36531 (June 5, 2023).

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

[[Page 51282]]

International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. 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 of the subject merchandise are 
materially injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: July 28, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is cold water gas 
powered pressure washers (also commonly known as power washers), 
which are machines that clean surfaces using water pressure that are 
powered by an internal combustion engine, air-cooled with a power 
take-off shaft, in combination with a positive displacement pump. 
This combination of components (i.e., the internal combustion 
engine, the power take-off shaft, and the positive displacement 
pump) is defined as the ``power unit.'' The scope of the 
investigation covers cold water gas powered pressure washers, 
whether finished or unfinished, whether assembled or unassembled, 
and whether or not containing any additional parts or accessories to 
assist in the function of the ``power unit,'' including, but not 
limited to, spray guns, hoses, lances, and nozzles. The scope of the 
investigation covers cold water gas powered pressure washers, 
whether or not assembled or packaged with a frame, cart, or trolley, 
with or without wheels attached.
    For purposes of this investigation, an unfinished and/or 
unassembled cold water gas powered pressure washer consists of, at a 
minimum, the power unit or components of the power unit, packaged or 
imported together. Importation of the power unit whether or not 
accompanied by, or attached to, additional components including, but 
not limited to a frame, spray guns, hoses, lances, and nozzles 
constitutes an unfinished cold water gas powered pressure washer for 
purposes of this scope. The inclusion in a third country of any 
components other than the power unit does not remove the cold water 
gas powered pressure washer from the scope. A cold water gas powered 
pressure washer is within the scope of this investigation regardless 
of the origin of its engine. Subject merchandise also includes 
finished and unfinished cold water gas powered pressure washers 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 cold water gas powered pressure washers.
    The scope excludes hot water gas powered pressure washers, which 
are pressure washers that include a heating element used to heat the 
water sprayed from the machine.
    Also specifically excluded from the scope of this investigation 
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 cold water gas powered pressure washers subject to this 
investigation are classified in the Harmonized Tariff Schedule of 
the United States (HTSUS) at subheadings 8424.30.9000 and 
8424.90.9040. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope is dispositive.

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

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Preliminary Affirmative Determination of Critical Circumstances, 
in Part
VI. Discussion of the Methodology
VII. Adjustment Under Section 777A(f) of the Act
VIII. Adjustment to Cash Deposit Rate for Export Subsidies
IX. Currency Conversion
X. Recommendation

[FR Doc. 2023-16594 Filed 8-2-23; 8:45 am]
BILLING CODE 3510-DS-P